As of 1 October 2015, new enterprises as well as enterprises
changing their registration details in China no longer need to
obtain a separate business licence, organisation code certificate
and tax registration certificate. Instead, enterprises can apply
for a new "three-in-one licence" by completing one
application form, and they can submit one set of documents to a
single registration authority. This reform is expected to be fully
adopted nationwide by the end of 2015.
The aim is to offer greater convenience to applicants by
simplifying procedures and shortening the application time. We
expect the new registration procedure to benefit both small
entrepreneurs and corporations, and encourage investment and
commercial enterprise in China.
Before 1 October 2015, to obtain a new registration or amend
existing registration details in China, enterprises needed three
separate certificates issued by: the State Administration for
Industry and Commerce (SAIC); the General Administration for
Quality Supervision; Inspection and Quarantine (AQSIQ); and the
State Administration of Taxation (SAT).
These three certificates – a Business Licence,
Organisation Code Certificate and Tax Registration Certificate
– have now been replaced by a "three-in-one
licence" issued by the SAIC. This new business licence
contains a unified social credit code for the legal entity, making
the other certificates redundant. This reform is expected to be
fully adopted nationwide by the end of 2015.
Applicants for the new licence complete one application form and
submit one set of documents to the SAIC. As soon as the application
is approved, the applicant receives a business licence with a
single identification number, and the registration is made public
on the national enterprise credit information disclosure
The aim of the new business registration system is to offer
greater convenience to applicants by simplifying procedures and
shortening the application time. Data from pilot regions that have
tested the new approach show a reduction in the average
registration time from one month to three working days, according
to the SAIC.
Although it remains to be seen whether the average time for
setting up a business entity will really be reduced to three
business days, we expect the new registration procedure to have a
positive effect on both small and large businesses in China.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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