18 Dec 2018
Guangdong Streamlines New Business Establishment Procedures
The Guangdong Provincial Administration for Market Regulation has issued new guidelines intended to reduce the time required to establish a new business within the province. This will be partly facilitated by government agencies sharing information, reducing the need for duplicate registration procedures, while the need for the pre-approval of enterprise name is to be abolished and the time taken to produce official business chops cut to just half a working day.
Initiated by the Guangdong Provincial Public Security Department, the Guangdong Provincial Tax Service of the State Administration of Taxation and a number of other local government bodies, it is hoped that the measures will cut the time taken to launch a new business in the province to just five working days. It is also believed that changes will facilitate broader market access for Guangdong-based enterprises.
Among the more specific measures to be adopted are the following:
- A mechanism for the sharing and mutual recognition of information relating to establishing a business is to be adopted. Utilising the information necessary to secure a business licence as the initial basis, a mechanism of information sharing and mutual recognition with a unified social credit code as identifier will be established in order to deliver whole-process, cross-regional and cross-sector information sharing.
- A “single window” system will be promoted and the “parallel production” of chops, invoices and other businesses necessities will be initiated. This will see a number of different government departments working together to maximise information dissemination and to streamline examination, approval and other related procedures.
- The enterprise registration procedures will be improved, with the business name pre-approval requirement rescinded. Instead, the voluntary declaration process regarding the enterprise’s name will be combined with company establishment registration in the hope that a registration decision will be made within three working days of the initial receipt of any application.
- The need for official approval prior to the production of official chops will be abolished in favour of record filing, with all official chop production then completed within half a working day.
- Application procedures for the issuance of invoices to newly set-up companies will also be streamlined.
For further details (in Chinese), please access the following link: