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Sichuan: Full Coverage Pilot of Reform Separating Operating Permits from the Business License in the Free Trade Zone Starts from December 1
Updated:2019.12.06

The policy issued by the State Council stipulates that, from December 1, inventory management for operating permits required of businesses and full coverage pilot of the reform separating operating permits from business license would be implemented in pilot free trade zones nationwide. For implementing the policy, Sichuan issued the Implementation Plan for Full Coverage Pilot of the Reform Separating Operating Permits from the Business License in China (Sichuan) Pilot Free Trade Zone (hereinafter referred to as the Implementation Plan), ensuring that for operating permits required of businesses, the reform would be implemented in four ways from December 1: direct canceling of approval, exemption from approval and being put on record, informing and pledging system, and approval service improvement.

523 central-level reform items in the Circular of the State Council on the Full Coverage Pilot of the Reform of Separating Operating Permits from the Business License in Free Trade Zones, as well as eight operating permits required of businesses at a Sichuan local level, according to the Implementation Plan, are all included in the inventory management ((hereinafter referred to as the inventory) for itemizing the responsible units, item names, setting basis, approval levels and departments, reform methods, specific reform measures, strengthening of concurrent and feedback inspection as well as regular adjustment and updating.

No enterprises (including individual businesses and farmers' professional cooperatives, similarly hereinafter) shall be restricted from entering relevant industries or fields beyond the inventory, and enterprises getting business licenses are allowed to operate independently,

Operating permits required of businesses included in the inventory management shall be pushed forward in four ways, specifically, 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.

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.

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.

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.

The Implementation Plan emphasizes that business license restrictions and approval materials shall be streamlined, and unreasonable certificates shall be canceled. At the same time, supporting measures are stipulated, including regulating business scope registration and business license application, improving approval efficiency and strengthening concurrent and feedback inspection, etc.

The policy issued by the State Council stipulates that, from December 1, inventory management for operating permits required of businesses and full-coverage pilot of the reform operating separating permits from business license would be implemented in pilot free trade zones nationwide. For implementing the policy, Sichuan issued the Implementation Plan for Full Coverage Pilot of the Reform Separating Operating Permits from the Business License in China (Sichuan) Pilot Free Trade Zone (hereinafter referred to as the Implementation Plan), ensuring that for operating permits required of businesses, the reform would be implemented in four ways from December 1: direct canceling of approval, exemption from approval and being put on record, informing and pledging system, and approval service improvement.

523 central-level reform items in the Circular of the State Council on the Full Coverage Pilot of the Reform of Separating Operating Permits from the Business License in Free Trade Zones, as well as eight operating permits required of businesses at a Sichuan local level, according to the Implementation Plan, are all included in the inventory management ((hereinafter referred to as the inventory) for itemizing the responsible units, item names, setting basis, approval levels and departments, reform methods, specific reform measures, strengthening of concurrent and feedback inspection as well as regular adjustment and updating.

No enterprises (including individual businesses and farmers' professional cooperatives, similarly hereinafter) shall be restricted from entering relevant industries or fields beyond the inventory, and enterprises getting business licenses are allowed to operate independently,

Operating permits required of businesses included in the inventory management shall be pushed forward in four ways, specifically, 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.

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.

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.

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.

The Implementation Plan emphasizes that business license restrictions and approval materials shall be streamlined, and unreasonable certificates shall be canceled. At the same time, supporting measures are stipulated, including regulating business scope registration and business license application, improving approval efficiency and strengthening concurrent and feedback inspection, etc.

 
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