Measures for Investigating and Punishing Unlicensed Business Operations

Measures for Investigating and Punishing Unlicensed Business Operations
Measures for Investigating and Punishing Unlicensed Business Operations

Order of the State Council of the People's Republic of China No.684

August 6, 2017

The Measures for Investigating and Punishing Unlicensed Business Operations are hereby published for implementation as of October 1, 2017.

Premier Li Keqiang

Measures for Investigating and Punishing Unlicensed Business Operations

Article 1 The Measures for Investigating and Punishing Unlicensed Business Operations (these "Measures") are hereby formulated in a bid to maintain the order of the socialist market economy, promote fair competition and protect the legitimate rights and interests of operators and consumers.

Article 2 Any entity or individual shall not violate any law, regulation or decision of the State Council to engage in any unlicensed business operation.

Article 3 The following business activities are not within the scope of unlicensed business operations:
1. sales of agricultural and sideline products and daily necessities at the places and time designated by the people's governments at the county level or above, or individuals conducting any labor activities for the convenience of people that do not require any license according to law by virtue of personal skills; and
2. engagement in any business activities that do not require any license or registration, as prescribed in applicable laws, administrative regulations or the State Council's decisions.

Article 4 The local people's governments at the county level or above shall organize and coordinate the investigation and punishments of unlicensed business operations within their respective administrative regions, and establish the mechanism for investigation and punishment of unlicensed business operations with the division of work and coordination of relevant departments.

Article 5 Where any operator fails to obtain any license according to the law to conduct any business activity, the department stipulated under any applicable law, regulation or the State Council's decision shall investigate and punish the operator; if there is no provision or clear provision under any applicable law, regulation or the State Council's decision, the department determined by the people's government of the province, autonomous region or municipality directly under the Central Government shall investigate and punish the operator.

Article 6 Where an operator conducts any business activity without a license obtained according to the law, the department fulfilling duties of industrial and commercial administration (the "administrative department for industry and commerce") shall investigate and punish the operator.

Article 7 Where an operator conducts any business activity without a license or business license obtained according to the law, the operator shall be investigated and punished according to Article 5 of the Measures for Investigating and Punishing Unlicensed Business Operations (these "Measures").

Article 8 The administrative departments for industry and commerce, departments determined by laws, regulations and the State Council's decisions and those determined by the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government (the "investigation and punishment departments") shall fulfill their duties according to the law, closely cooperate, and strengthen information sharing by virtue of information network platforms; if any department finds any unlicensed business operation not within the jurisdiction thereof, it shall inform the relevant department in due time.

Article 9 Any entity or individual shall be entitled to report to an investigation and punishment department any unlicensed business operation.
An investigation and punishment department shall make public the phone number, post box or e-mail address for the acceptance of reports, arrange persons to accept reports and deal with them according to the law.
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