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State Council calls for speeding up business registration reform

Updated: Jul 5,2016 4:36 PM

The State Council issued a circular on July 5 to further speed up business registration reform in China.

The State Council decided to officially implement the “five-in-one business license” starting on Oct 1 to reduce administrative approvals for start-ups and improve the overall business environment, according to the circular.

“Five-in-one business license” features a standardized national credit number, which covers business license, tax registration, organization code, public security and social security. And it also contains a two-digit that any official or individual can scan using a smart phone and immediately see all the relevant information about the company. The registration system reform requires each applicant to offer only one essential business certificate to one business administration office, largely improving efficiency and cutting red tape.

In the circular, the State Council decided to promote an online management system for business registration and establish an information sharing platform between all the related departments.

In addition, the circular urged properly handling the transition work. Companies registered under the “three-in-one business license” do not need to submit new five-in-one applications. Their information will be submitted to related departments by their original registration organs.

The State Council also mandated supporting the extensive use of the new business license. Business licenses should be used in all registration affairs and not any other kind of licenses or cards. And it should be recognized and accepted at all government departments, enterprises and institutions, and intermediary agencies.

The circular also urged enhancing the team building of those who handle the registration process and improving their service quality and work efficiency.

To ensure the smooth promotion of this reform, local governments at all levels and relevant departments are required to strengthen coordination, supervision and guidance.