No Business License: investigation and punishment

No Business License: investigation and punishment

The State Council of the People’s Republic of China has published the Measure of Investigation and Punishment regarding Operation without Business License and Permission on August 6th 2017 which will come into force on October 1st 2017.

The Measure has tightened the scope of operation without business license and permission, if the operator sells agricultural and sideline products, daily necessaries in the place and time designated by local government at or above the county level, or individual using his/her skills to provide labor service which does not need permission, these activities shall not be deemed as operation without business license and permission.

Furthermore, inspecting authority shall investigate and punish operation without business license and permission according to laws and regulations, shall insist the principles of combining investigation and guidance, punishment and education. If the operator who intends to continue to operate and has legal conditions, the law-enforcing department shall guide to make the operator operate legally, instead of crackdown.

The Measure also stipulates clearly that the Administrative of Industry and Commerce shall be responsible to settle operation without business license. The other relevant department which has power to punish the illegal operation according to laws and regulations shall be responsible to play its administrative mandates and perform its functions in investigating. Any enterprises or individual who operate without business license and permission, shall be recorded in the credit record system.

The Measure gives public the right to report the illegal operation to law-enforcing department which shall keep the reporter’s information secret.

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