On August 12, 2014, the State Administration for Industry and Commerce (the SAIC) released for public comments the proposed draft Administrative Regulations on Enterprises Business Scope Registration (Draft for Comment) (the Draft), which would replace the Administrative Regulations on Enterprise Business Scope Registration for Enterprises issued in 2004 (the 2004 Version). The public comment period ended September 11, 2014.
They key differences between the 2004 version and the Draft include:
- The classification of business scope items into “operational items subject to approval” and “general operational items” has been eliminated. Instead, in accordance with the reform on the business registration system and the principle of “first license then approval” (instead of “first approval then license”), the Draft makes the distinction between (i) operational items requiring approval prior to business registration (the Pre-Registration Approval Items); (ii) operational items requiring approval after business registration (the Post-Registration Approval Items); and (iii) other operational items.
- The Draft provides that with respect to Pre-Registration Approval Items, the relevant enterprise should obtain applicable approval from the relevant government agency prior to business registration with the applicable local administration for industry and commerce (the local AIC).
- With respect to Post-Registration Approval Items, the relevant enterprise should first register with the local AIC and then obtain the applicable approval from the applicable government agency. Once the approval is obtained, the enterprise may commence its operations.
- The Draft requires enterprises to disclose certain enterprise information (such as information relating to its administrative approvals or any change to such information) to the public via the enterprise credit information database.
The Draft proposes to update the 2004 version to include provisions that would implement the larger reform on the business registration system.
- The Administrative Regulations on Enterprises Business Scope Registration (Draft for Comment)
- Issuing authority: the State Administration for Industry and Commerce
- Date of issuance: August 12, 2014 / Public Comment Deadline: September 11, 2014