Open Governance
Full Coverage Pilot of Reform Separating Operating Permits from the Business License in China (Sichuan) Pilot Free Trade Zone Starts as of Today

China (Sichuan) Pilot Free Trade Zone Takes a big step in improving the business environment. The People's Government of Sichuan Province issued the Implementation Plan for Full Coverage Pilot of the Reform Separating Permits from the Business License in China (Sichuan) Pilot Free Trade Zone, stating that for improving the business environment and providing experience for promoting relevant reforms in Sichuan Province, full coverage pilot of reform separating operating permits from the business license in China (Sichuan) Pilot Free Trade Zone would be implemented from December 1, 2019.

The reform separating operating permits from the business license refers to the separation of operating permits and the business license. For the convenience of business operators, they are allowed to carry out general business activities with business licenses, moreover, the phenomena of "easy to get business license but hard to get operating permit" and "entry allowed with business operation not allowed"; 523 central-level reform items and eight operating permits required of businesses at a Sichuan local level are all included in the inventory management through full coverage pilot, no enterprises shall be restricted from entering relevant industries or fields beyond the inventory, and for operating permits required of businesses, the reform would be implemented in four ways:

First, direct cancellation of approval. Direct canceling of approval enables business operators to carry out operating with business license only. Direct canceling of approval is adopted when, firstly, operating permits required of businesses is no longer unnecessary to be around; secondly, market mechanism can apply effective regulation; thirdly, industry organization and intermediary can achieve self-control management; fourthly, it can be effectively regulated through concurrent and feedback inspection.

Second, exemption from approval and being put on record. For those operating permits required of businesses that can be exempted from approval, or relevant information are needed from companies to help relative administrative departments implement industry management and maintain public interest shall be put on record. Nine items that can be exempted from reform approval shall be put on record, including approval of clinic setting-up, approval of class B large medical equipment for non-government medical institutions, registration of customs brokers, food business license (for sale of prepackaged foods only), approval of enhancement and releasing in natural waters, registration and approval of export food manufacturers registration and approval of non-operating general aviation activities and approval of syndication, reorganization and restructuring of civil aviation enterprises.

Third, informing and pledging system. For companies that commit to have qualified business running conditions can start operating after acquiring operating certificate. Companies shall make commitment on those operating permits required of businesses that need to be remained. Administrative department can redress activities that do not comply with operating permit or do not prevent risks effectively, on which condition the informing and pledging system shall be implemented.

Fourth, approval service improvement. For operating permits required of businesses that concerning major public interests such as national security, public security, financial security, ecological security and public health, and are not qualified of approval canceling or implementing informing and pledging should be better handled with practical measures to increase approval efficiency and keep the cost down.

As a supporting measure, the Implementation Plan states that, government information involving business operation but no state secret shall be shared in a centralized manner by relevant provincial departments. Information that can be obtained through information sharing shall not be required to be provided by enterprises; business qualifications for enterprises in the China (Sichuan) Pilot Free Trade Zone can be obtained through direct canceling of approval and exemption from approval and being put on record, and the qualification of business activity outside the China (Sichuan) Pilot Free Trade Zone shall be decided by relevant provincial departments according to relevant regulations.

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