New Policy Changes: Simplifying Company Set Up & Obtaining Access to Government Services

June 28, 2018
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The Chinese authorities have recently initiated new policies aimed to facilitate international business enter into the Chinese market. Some measures are aimed to simplify approval processes, reducing its duration, and improve accessibility to government services for Foreign-Invested Enterprise (FIE) and construction projects. Initially, those measures will be implemented in specific areas of the country. By the first half of 2019, the new policy would apply nationwide.

Business Establishment Regulations: One-Stop, One-Form

By June 30, a new “one-stop, one-form” procedure for Foreign-Invested Enterprise will replace the existing lengthy complex process. The new procedure will reduce existing bureaucratic processes from over twenty days to eight and half days. This would be achieved in few ways: first, by joining form filling and registration processes at one office. Second: by enabling online submission of the application. Additionally, the Chinese government removed the need for companies’ name advanced approval. Furthermore – there is a plan to reduce processing time for invoice applications and insurance registration.

Municipalities, under the central government’s authority, will be the first to benefit from these changes, including Beijing, Chongqing, Tianjin, and Shanghai, in addition to some planned cities, sub-provincial cities, and provincial capitals such as Guangzhou, Hangzhou and Shenzhen.

Construction Projects

A similar plan to simplify and reduce the waiting period for approval of construction projects from over 200 days to 120 days is underway. The Chinese government plans to simplify the process of examination and endorsement, mainly by reducing numbers of items subject for approval. This includes implementing a “category-management” process applicable for small and medium size companies. Finally, the government all requirements will be combined into one check list and that will be evaluated by one designated department instead of being checked by different departments of the government.

The plan will first be implemented at 16 pilot regions, including Beijing, Shanghai, Nanjing and Guangzhou, and will be implemented nationally by the first half of 2019.

Internet-Based Governance

As part of creating a better business environment, a uniformed e-platform to access government services has been announced. In order to smooth doing business in china, the platform will combine all relevant government departments and services – except if laws forbid it – and make them universally and easily accessible at a dedicated platform. As a result, by the end of 2019, about 90 percent of provincial-level authorities’ services and 70 percent of services offered by city and county-level authorities will be accessible online. Items requiring approval by office appointments will be consolidated at a designated location in order to avoid multiple visits.

The pace of the reform to cut red tape in China was fast in the course of the last five years. World Bank data shows that China’s ranking for “Ease of doing business” improved by 18 places during this time, and increase by 65 places for “Ease of setting up a business.”

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Further Reading :

The State Council Information Office of China (SCIO): China makes greater efforts to better business environment

China Daily: Unified data-sharing platform proposed for e-government