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Market entities to get more safeguards

By Wang Keju | China Daily | Updated: 2021-04-15 06:42
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Photo taken on April 1, 2021 shows a workshop of a microwave oven factory of Midea Group, a Chinese home appliance giant, in Foshan city, South China's Guangdong province. [Photo/Xinhua]

Measure 'to advance both deregulation and oversight wherever appropriate', Li says

The State Council's executive meeting chaired by Premier Li Keqiang on Wednesday adopted the draft Regulation on Market Entity Registration and Administration, to provide legal safeguards for cultivating and strengthening market entities, spurring entrepreneurship and innovation, and maintaining market order.

Thanks to institutional reforms in the business sector in recent years, the number of market entities increased by over 60 million during the 13th Five-Year Plan period (2016-20). This has helped to boost economic vitality and resilience, and added a large number of jobs.

The reform of government functions will be deepened to turn practices that have proved to be effective into institutional norms, with a special focus on improving the basic system of market entity registration and administration.

The draft integrates the already promulgated administrative regulations on market entity registration and sets out unified provisions on the registration and administration of enterprises of all types, self-employed individuals and specialized farmers' cooperatives that engage in for-profit business activities in China.

"The regulation is to advance both deregulation and oversight wherever appropriate, to provide legal safeguards for cultivating and strengthening market entities and promoting fair competition," Li said.

Business registration will be made easier. One-stop services will be accessible online where applications shall be processed in a time-bound manner, and interprovincial approval will be made available.

Registration departments should provide on-the-spot registration for market entities whose application materials meet statutory requirements. In cases where registration cannot be approved on-site, competent departments should complete the registration within three working days.

A dormant business mechanism will be established to help lower businesses' operational costs. Market entities may decide on their own to turn dormant for a certain period of time due to difficulties caused by natural disasters, accidents or public health emergencies. They will have to file with the registration departments. The dormancy period may not exceed three years.

Real-name registration of market entities will be implemented. Market entities will be held accountable for the authenticity, legality and validity of their materials submitted, and disclose annual reports and registration-related information in line with the regulation.

Market entities' registrations will be revoked if they are found to have provided falsified materials or committed other fraudulent acts during registration. The people in direct charge may not apply for registration again within three years.

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