The Administrative Provisions on Business Scope Registration for Enterprises has come into force on 1 Oct. 2015

11 years later, in order to strength the enterprises’ autonomy, and manage the enterprises by being slack at enrolment but strict at daily operation, the SAIC has amended ‘The Administrative Provisions on Business Scope Registration for Enterprises’ (The Revised Provisions) recently. The main contents include:

Less requirements on the approval items

The approval items have been divided into the pre-registration approval items and the post-registration approval items. The enterprise’s registration procedure could be speed up by such arrangement, and the enterprise could initiate the other non-approval items in advance.

The Revised Provisions has deleted the requirement on the operation period, which entitle the enterprises to operate as long as they want.

The words varieties for the business scope

Previously, the business scope shall be set by selecting one or several small, middle or big categories by reference to the Industrial Classification for National Economic Activities. However, the Revised Provisions has further prescribed that in case of emerging industries or specific business projects which are not regulated in the Industrial Classification for National Economic Activities, the applicant may file the application by reference to policy documents, industrial practices or professional literature. In view of this, those new commercial models are encouraged to develop in the future.

Emphasis the disclosure requirements

The Revised Provisions 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. In addition, it has set the given period for the enterprises to disclose such information.