State Coun­cil to fur­ther ease busi­ness pro­ce­dures

More mea­sures on the way to stream­line pri­vate com­pany regis­tra­tion

China Daily (USA) - - POLICY REVIEW - By HUY­ONGQI and ZHANG YUE Con­tact the writers at huy­ongqi@ chi­

China is to fur­ther stream­line regis­tra­tion pro­ce­dures for pri­vate busi­nesses, tar­get­ing a re­duc­tion in the costs as­so­ci­ated with en­trepreneur­ship and in­no­va­tion as well as im­prov­ing the busi­ness en­vi­ron­ment and em­ploy­ment.

The de­ci­sion was made at a State Coun­cil ex­ec­u­tive meetingonFri­day, preside­dover­byPremierLiKe­qiang.

A num­ber of mea­sures have been put in place since 2015 to merge the or­ga­ni­za­tion code cer­tifi­cate and the cer­tifi­cate of tax­a­tion regis­tra­tion into a sin­gle doc­u­ment, a busi­ness li­cense, with so­cial credit codes. An­other two cer­tifi­cates, namely the so­cial in­surance regis­tra­tion cer­tifi­cate and the sta­tis­tics regis­tra­tion cer­tifi­cate, were also merged into the li­cense.

Newmea­sures, in­clud­ing merg­ing th­ese five busi­ness-re­lated cer­tifi­cates into one li­cense, which were put in place on Oct 1 after be­ing ini­tially ap­proved in­May, have sig­nif­i­cantly en­cour­aged pri­vate busi­nesses.

Ac­cord­ing to a state­ment re­leased after Fri­day’s meet­ing, pi­lot­ing mea­sures in merg­ing those cer­tifi­cates into the cur­rent scheme are en­cour­aged to be car­ried out in some cities and re­gions and will be pro­moted across the coun­try after proper eval­u­a­tion.

Mean­while, the govern­ment will make bet­ter use of the “In­ter­net Plus” strat­egy aim­ing to put the en­tire busi­ness regis­tra­tion process on­line. Cur­rently, 22 prov­inces and au­ton­o­mous re­gions, in­clud­ing Bei­jing and Shang­hai, have launched tri­als.

The meet­ing also called on gov­ern­men­tal agen­cies to bet­ter reg­u­late th­ese busi­nesses be­fore, dur­ing and after the setup process, with bet­ter in­for­ma­tion shar­ing.

Li said that greater ef­forts are re­quired in stream­lin­ing busi­ness regis­tra­tion, as too many cer­tifi­cates are still re­quired to reg­is­ter a new­busi­ness. “We should do away with those cer­tifi­cates that are not re­ally re­quired for start­ing a busi­ness to fully re­al­ize the ben­e­fits of re­form and the mar­ket,” he said.

Li has said that the ef­forts to stream­line busi­ness regis­tra­tion and scale back govern­ment con­trol are be­ing taken to meet the re­quire­ments for an­other round of open­ing up and to im­prove China’s global com­pet­i­tive­ness.

He also called for on proper su­per­vi­sion in the con­text of the re­form, while warn­ing against dis­turb­ing ex­am­i­na­tions and in­cur­sions into pri­vate en­ter­prises. “The key is to prop­erly un­leash their po­ten­tial,” he said.

“Pri­vate busi­ness is ex­pe­ri­enc­ing slow­ing growth this year and th­ese mea­sures can boost the en­thu­si­asm of pri­vate in­vestors,” said Ma Baocheng, di­rec­tor of the De­ci­sion-Mak­ing and Con­sul­ta­tion De­part­ment at the Chi­nese Academy of Gov­er­nance.

State Ad­min­is­tra­tion for In­dus­try and Com­merce sta­tis­tics re­cently showed that new stream­lin­ing ef­forts have had a sig­nif­i­cant im­pact in the two weeks since im­ple­men­ta­tion at the be­gin­ning of this month. Reg­is­ter­ing a new busi­ness now only takes two to three work­ing days, while it pre­vi­ously took sev­eral months and re­quired stacks of printed doc­u­ments that had to be sub­mit­ted to half a dozen de­part­ments.

A to­tal of 488,000 new busi­ness li­censes have been is­sued since Oct 1, and an on­line sur­vey showed that more than half of those sur­veyed gave pos­i­tive feedback on the busi­ness regis­tra­tion re­form. Fig­ures also show that the num­ber of new busi­ness reg­is­tra­tions has grown from about 12,000 per day last year to 14,600 per day in the first eight months of this year, while thenum­ber was only 6,900 be­fore the re­form.

Three years ago, Tu Bizhi founded a lo­gis­tics com­pany in­Wuhan, cap­i­tal of Hubei prov­ince, with sev­eral of his friends. It took the 28-yearold al­most three months to com­plete the regis­tra­tion process, but he said his friends who have re­cently reg­is­tered their new busi­nesses have found it much eas­ier.

“The real econ­omy is not as prof­itable as be­fore and sim­pli­fied pro­ce­dures can save us much time to ex­plore the mar­ket, and find new cus­tomers. In short, the newmea­sures can help pri­vate busi­ness­men like me,” Tu said.

Ma echoed Tu by say­ing that a sim­pler process for busi­ness regis­tra­tion will also be ben­e­fi­cial to grass­roots en­trepreneurs and in­no­va­tions which have been pro­moted by the cen­tral govern­ment since two years ago.


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