The State Council has decided to cancel another 11 administrative approval items to further simplify administration, according to a circular published on August 3.





Here are the eleven approvals to be canceled


Work Permit

1. Work permits for residents from Hong Kong, Macao special administrative regions, and Taiwan in the Chinese mainland. 

After the cancellation of the approval, the Ministry of Human Resources and Social Security (MOHRSS) will be fully responsible for employment services, social security, unemployment registration, labor rights protection, etc, for employees from Hong Kong, Macao, and Taiwan. 


Know that if you encounter any labor issues in China such as being cheated by your employer, the MOHRSS is the administrative department that can help you. 



Image: http://www.zxjingbao.com/shishang/detail/sortid/1/id/725.html


Company Affairs

2. Verification of corporate group

A corporate group or group of companies is a collection of parent and subsidiary corporations that function as a single economic entity through a common source of control. 


In China, a company has to go through a series of verification before taking the "Group" title. State Market Regulatory Administration will roll out specific standards and requirements to guide companies how to properly use "Group"  when the verification requirement is canceled.


3. Record filings for established company branches. 

Initially, it is the Industry and Commerce Department that monitors all procedures for record filings for established company branches. After the state institutional reform comes into effect, the State Administration for Industry and Commerce will be directly under the administration of State Market Regulatory Administration.  


The record filings for established company branches will be canceled, literally, it is applicable to all types of companies as the document does not make any exclusion, but we sill need to wait for the officially detailed sayings. Meanwhile, the State Market Regulatory Administration and Industry and Commerce Department TWO departments will increase inspections for company affairs. 




4. Announcement to withdraw business licenses.

Applicants are originally required to place their announcement to withdraw their business licenses in the media. After the cancellation of the announcement, the applicants are only required to post a free announcement on the related administrative department.


5. Record filings for established, converting, canceled foreign-funded Partnership Enterprises.

A partnership in the People's Republic of China is a business entity governed by the Partnership Enterprise Law. After the cancellation of the record filing, instead, the State Market Regulatory Administration and Industry and Commerce Department will build a centralized monitor system to get the updated information of enterprises. 


6. Initial review of domestic company to establish a company overseas (financial sector excluded)

After the cancellation of the initial review, the Ministry of Commerce directly supervises and makes approvals.


New investment opportunities


7. Project approvals for foreign investment in the transportation sector.

China opens more sectors to embrace foreign investment. After the cancellation of the approval, foreign investments will be fairly treated as the local investment. Foreign investors can apply for the Passenger Transportation License, Cargo Transportation License according to the law and legally own a business in the transportation sector.


8. Vehicle maintenance and operation permit

After the cancellation of the approval, the Ministry of Transport will announce specific standards on vehicle maintenance business, impose penalties on violations of laws and regulations and establish a blacklist system to record lawbreakers, which is connecting to the current credit system.


9. Initial review of import and export of the state key protection aquatic animal and related products.

Ministry of Agriculture and Rural Affairs will directly handle the examination and approval of aquatic animal and related products and they will strengthen supervision by implementing the following measures: 


1. Strengthening the supervision of the import and export of aquatic animals, cracking down on illegal import and export behaviors, and record the results of punishment on China's credit system.


2. Strengthening the inspection on importing and exporting the national key protection aquatic animals and related products, setting up strict control to prevent the invasion of harmful overseas species.


10. Issuing agricultural machinery maintenance technical certificates

After the cancellation of the approval, the Ministry of Agriculture and Rural Affairs will standardize the maintenance services industry and increase the random inspections of enterprise' agricultural machinery maintenance.


11. Visas for shipscommutes to fishing ports

After the approval is canceled, the reporting system will be implemented instead. The Ministry of Agriculture and Rural Affairs will require the local fishery administrative department to strengthen supervision by defining the contents of the inbound and outbound reports, etc.


Above are eleven specific administrative approvals that will be cut, as announced by the State Council. The State Council also urged related departments to formulate and improve detailed oversight rules on business operations.GICA.jpg