Operating License and Business License separated: the reform

The State Council of China officially promulgates the “Reply to the Work Plan for Further Promoting the Pilot Reform of Separation of Operating License and Business License in Shanghai Municipality” (or “Work Plan”) on January 31, 2018. This Work Plan examines and approves of firstly conducting pilot reform in Pudong New Area, Shanghai. The pilot period begins from the date of approval to December 31, 2018. The main purpose of the implementation plan is to reduce various burdens of companies obtaining licenses and to optimize the relevant administrative procedures.

In this Work Plan, the State Council agrees to cancel or simplify the approval of 47 licenses in 10 fields; a few items are enumerated here for reference:

1. Tax

The tax service can be improved in different ways, for example, by optimizing the invoice management. Moreover, it is no longer necessary to check and ratify the invoice types applied by enterprises based on the scope of business. Among the areas subject to the reform, there is also the implementation of the electronic invoices, by carrying out the invoice online-application, picking-up nearby and using a professional delivery service.

2.  Medical health care

The main aspects which the reform would impact on are the establishment examination and approval for medical institutions; the configuration management of Class B large medical equipment in social medical institutions; the innovation of the health management in public places and the reform of hygienic licenses of the disinfection product manufacturing enterprises.

3. Transportation.

The main areas of the reform regard the operation and management of road passenger transportation, the examination and approval procedures for operators of transport lines (in detail, bus and tram). Furthermore, the reform refers also to international shipping transportation and business, maritime transport business (between Mainland China and Taiwan) and to port management, by supervising the utilization of non-deep-water coastline for the construction of  port facilities.

In order to implement the pilot reform, the State Council and Shanghai Government will apply for provisional laws and regulations to modify the license, since there isn’t a specific regulation yet. Therefore, we suggest the operators to pay active attention to the revision of the laws and regulations as is relevant to their specific industry.

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