On Dec 29, the State Council issued a reply to the proposal for pilot reforms of business licensing in Shanghai, approving tests in Pudong New District.

The tests will allow companies to get their business licenses before getting administrative permits, a step to create a more favorable and convenient business environment and promote mass entrepreneurship and innovation.

The move will streamline administrative approvals, promote innovation and entrepreneurship, inject dynamism into the economy, and create legislative, international, and convenient business environment, offering precedents to further reform the administrative system nationwide, the State Council said.

The pilot reform in Pudong New District involves 116 administrative approvals.

Administrative approvals on issues such as used motor vehicle appraisal and assessment and outdoor advertising will be canceled, and companies will be able to operate immediately after receiving their business licenses.

Administrative approvals on other issues, such as processing trade contracts, will require paperwork from companies before they can start operations.

Administrative approvals on issues such as business license of motor vehicle maintenance cannot be abolished for the time being, but companies can get business permits by promising the government that they meet the approval qualifications required by the government and handing in materials.

In addition, for administrative approvals regarding public security, environmental protection, and people’s life and property security, the government will strengthen management of market access and risk control.

Regulation measures will also be taken as authorities will set up credit records and “black lists” to supervise companies. Industry disciplines and standards stipulated by industrial associations as well as social supervision are also encouraged to regulate the market, according to the plan.

Previously, a company was required to get administrative permits before receiving a business license from the industry and business department of the government.