Circular of the State Council on Launching the Pilot Program on the Full-coverage Reform of "Decoupling Business Licenses from Operating Permits" in Pilot Free Trade Zones

Circular of the State Council on Launching the Pilot Program on the Full-coverage Reform of "Decoupling Business Licenses from Operating Permits" in Pilot Free Trade Zones
Circular of the State Council on Launching the Pilot Program on the Full-coverage Reform of "Decoupling Business Licenses from Operating Permits" in Pilot Free Trade Zones

Guo Fa [2019] No. 25

November 6, 2019

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

In recent years, upon decision, the State Council has carried out the pilot program on the reform of "decoupling business licenses from operating permits" in terms of some enterprise-involved business licensing items in places including Shanghai for replication and promotion step by step, which effectively reduces institutional transaction costs for enterprises, optimizes the business environment and stimulates the market vitality and social creativity. With a view to further eliminating the phenomenon of "letting firms in but not letting them do business", making it quicker and easier for enterprises to obtain the business license and start regular business operation as soon as possible, the State Council decides to implement list-based management of all enterprise-involved business licensing items and launch the pilot program on the full-coverage reform of "decoupling business licenses from operating permits" first in pilot free trade zones nationwide. Relevant matters are hereby notified as follows:

I. General Requirements
1. Guiding Ideology. We shall, take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guide, fully implement the guiding principles of the 19th National Congress of the Communist Party of China ("CPC") and the Second, the Third and the Fourth Plenary Sessions of the 19th CPC Central Committee, follow the major policies and plans made by the CPC Central Committee and the State Council, continuously deepen the reform of "delegating power, improving regulation, and upgrading services", further clarify the responsibilities of governments and enterprises, thoroughly check enterprise-involved business licensing items, promote the reform of the approval system by category, refine simple and transparent industry access rules, further expand enterprises' business operation autonomy, innovate and strengthen in-process and ex-post regulation, and create a market-driven, law-based and international-oriented business environment and stimulate the vitality of micro entities, thus promoting the high-quality economic development.
2. Pilot scope and content. It is decided to, on the basis of in-depth study of the experience in implementing the reform of "decoupling business licenses from operating permits" in terms of some enterprise-involved business licensing items in recent years, as of December 1, 2019, implement full-coverage list-based management of all enterprise-involved business licensing items in pilot free trade zones of Shanghai, Guangdong, Tianjin, Fujian, Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan, Shaanxi, Hainan, Shandong, Jiangsu, Guangxi, Hebei, Yunnan, Heilongjiang, etc., and promote the reform by category through four methods, namely, directly cancelling the requirement for approval, requiring record-filing instead of approval, implementing notification and commitment system and optimizing the approval service, thereby forming institutional innovation results that can be replicated and promoted for the realization of the full-coverage reform of "decoupling business licenses from operating permits" nationwide.
Within the scope permitted by laws, administrative regulations and decisions of the State Council, people's governments of all provinces, autonomous regions and municipalities directly under the Central Government may decide to carry out the pilot program on the full-coverage reform of "decoupling business licenses from operating permits" in other areas where conditions permit, and take reform measures to a greater extent in terms of enterprise-involved business licensing items, which shall be actively supported by relevant departments under the State Council.

II. Realizing Full Coverage of Enterprise-involved Business Licensing Items
1. Establishing a list-based management system. It is required to, in line with the requirements on the full-coverage reform of "decoupling business licenses from operating permits", incorporate all enterprise-involved business licensing items into the list-based management, and item by item, specify such contents as item name, its basis, approval level and department, reform mode, specific reform measures and measures for strengthening in-process and ex-post regulation. These lists shall be adjusted and updated on a regular basis and announced to the public for social supervision. Unless otherwise specified in these lists, no enterprise (including individual industrial and commercial household and farmers' professional cooperative, the same below) may be restricted from accessing relevant industries or fields in violation of regulations, and all enterprises may independently carry out business operation immediately after obtaining the business license.
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