Premier Li Keqiang asks officials about the ongoing business reform at the Enterprise Registration Bureau of the State Administration for Industry and Commerce during a visit there on March 20, 2015.
China’s reform of the business registration system has been effective as more than 280,000 new licenses were issued in the first eight days, according to the State Administration for Industry and Commerce, State Administration of Taxation and General Administration of Quality Supervision, Inspection and Quarantine on Oct 12.
With the new system, the registration time for establishing an enterprise can be as short as three days from the previous 26 days on average, and some even can get the license immediately, said sources from the three ministries.
When meeting the press in March, Premier Li Keqiang talked about promoting the reform of combining three certificates into one as a major task of the 2015 Government Work Report, where he also highlighted the reform task.
He said the government will further widen market access, carry out the policy of issuing business licenses with a unified social credit code and make it easier for enterprises in the service sector to enter the market in China.
The country started implementing the new business registration system on Oct 1, enabling enterprises to begin operations with a new business license and unified social credit code, instead of submitting several separate applications to the three ministries before being approved to establish an enterprise.
It is part of efforts streamline the administration process, improve the government’s work efficiency and release the inner potential for economic development in China, the sources said.
Data from the National Business Daily showed that so far, 31 provincial regions have upgraded their online enterprise publicity system and begun information sharing within the local departments of industry and commerce, quality supervision, inspection and quarantine, and taxation.
The implementation of the new registration system of combining three certificates into one is the sector’s inner need, and it will also provide more convenient services for the market, Su Hainan, deputy director of The China Association for Labor Studies, told the newspaper.
A survey from Fujian province showed that 83.8 percent of applicants thought the new registration process was very convenient, and almost 100 percent are satisfied or very satisfied with the new system.
The government’s next effort will be to increase the number of new enterprises and the activity of the already registered enterprises, said the sources.
Premier Li also said that we not only need to get the enterprises up and running by reducing the barriers for entrepreneurship, but also try to help them avoid becoming “zombie enterprises”, by enabling them to grow and thrive, while visiting the State Administration for Industry and Commerce in March.