Recently the Chinese State Administration for Industry and Commerce (the “SAIC”) promulgated the Decision of the SAIC on Amending the Rules for the Implementation of the PRC Regulations for the Administration of the Registration of Corporate Legal Entities, the Regulations for the Administration of the Registration of Foreign-Invested Partnership Enterprises, the Measures for the Registration of Sole Proprietorship Enterprises and the Measures for the Administration of the Registration of Individual Businesses. The Decision will come into force on March 1.
The amendment covers six major topics including:
- repealing the minimum registered capital requirements for enterprises;
- replacing the annual inspection system for enterprises and individual businesses with an annual report/public notice system;
- repealing restrictive regulations on enterprise domiciles;
- implementing an electronic business licensing system (adding the regulation “The national government shall endow electronic business licenses with the same legal effect as paper business licenses”);
- clearly implementing the public notice system for enterprise credit information; and
- reducing administrative intervention in enterprise internal affairs and conducting formal reviews of business registration application materials.
The Registered Capital Registration Reform Plan issued by the PRC State Council came into force on March 1, 2014. Reforms to other industrial and commercial registration systems are also on the way.