Circular of the State Council on Promoting the Reform of "Separating Operating Permits and Business Licenses" across the Country

Circular of the State Council on Promoting the Reform of "Separating Operating Permits and Business Licenses" across the Country

Circular of the State Council on Promoting the Reform of "Separating Operating Permits and Business Licenses" across the Country

Guo Fa [2018] No.35

September 27, 2018

People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, as well as the ministries and commissions of and the institutions directly under the State Council,

The pilot implementation, in Pudong New Area, Shanghai, and wider replication and promotion of the reform of "separating operating permits and business licenses" has effectively reduced the institutional transaction costs of enterprises and achieved remarkable results. In order to further solve the problem of "prohibition against doing relevant business although having access to the relevant market", stimulate the vitality of market players, accelerate the profound transformation of government functions and create a legal, international and convenient business environment, the State Council has decided to promote the reform of "separating operating permits and business licenses" nationwide on the basis of the previous pilot implementation thereof. The relevant matters are hereby notified as follows:

I. Overall Requirements
1. Guiding ideology.
Comprehensively implement the spirit of the 19th CPC National Congress and the Second and Third Plenary Sessions of the 19th Central Committee, firmly establish and implement new development ideas under the guidance of Xi Jinping's thought of socialism with Chinese characteristics in the new era and according to the decisions and arrangements of the CPC Central Committee and the State Council, implementing the requirements of the reform of "separating operating permits and business licenses" by closely centering on streamlining government functions and administration, delegating powers while improving regulation and optimizing services, further clarify the relationship between the government and the market, comprehensively reform the examination and approval methods, streamline permits and licenses related to enterprises, strengthen in-process and ex post comprehensive supervision and administration, and innovate government management methods, so as to further create a stable, fair, transparent and predictable market access environment, fully release market vitality and promote high-quality economic development.
2. Basic principles.
-- Highlighting cutting back on the permits and certificates now required once a business license is issued and cut all that can be cut, and merge all that can be merged. Except for certificates related to major public interests such as national security, public security, financial security, ecological security and public health, separate "certificates" of a license nature by adopting appropriate management methods to minimize examination, approval and issuance of certificates, effectively distinguish the functions of " certificates" and "licenses" and strive to solve the problem of "prohibition against doing relevant business although having access to the relevant market".
-- Lifting or exercising regulation where necessary, placing equal stress on deregulation and control, and applying tougher supervision of lower entrance. Grant to the market and society rights that should be given to the market in a sufficient and effective manner, and effectively manage affairs for which the government is responsible. Always put the lifting or exercise of regulation where necessary in a prominent position, do a good job in the effective connection between examination and approval and supervision, change from ex ante examination and approval to the strengthening of in-process and ex post supervision, and strengthen comprehensive supervision.
-- Adhering to law-based reform, having a legal basis and steady promotion.
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