Changes to China’s Business Registration System in March 2014

by Matt Slater 03/03/2014

Today is the first working day with the new Chinese business registration system in effect. We’ve translated a Chinese news piece about the changes below.

In summary:

• There are some formatting changes to the business license.
• A QR code has been added that allows lookup of digital registration records.
• There are now less restrictions on capital registrations for new businesses.
• There is to be much more digitisation of the registration system.

The digitisation system and QR codes on the business license are particularly interesting. Hopefully this will usher in greater transparency and openness in China’s business environment.

Translated Story from Sichuan News

启动新版营业执照
A New Version of the Business License is Launched

3月1日开始，我国将启用新版营业执照。
Starting from the 1st of March, China will put a new version of the business license into use.

与旧版营业执照的“横”版式不同，新版营业执照与A3纸同等大小，采用了“竖”版式。根据经营主体的不同，新版营业执照缩减合并为1种版式8种格式，并统一了版式，不再使用“企业法人营业执照”等提法，而是统一改为“营业执照”。
Unlike the old business license with its horizontal format, the new one has a vertical format and is the size of an A3 sheet of paper. The new business license reduces and merges its presentation of different business entities into one format with eight specifications. The unified term “Business License” will be used instead of various terms such as “Enterprise and Corporation Business License”.

新版营业执照上，取消了“实收资本”一栏，除了包含名称、法定代表人、经营范围等内容外，还特别增加了二维码标志。通过手机扫描该二维码，可直接跳转到企业信用信息公示系统的链接网址，查看企业相关信息。交易双方只要扫描对方执照上的二维码，就可知道对方的信用状况，普通消费者也可通过该方式查询企业营业执照的真伪。
On the new format business license, the ‘paid-up capital’ field has been removed. Apart from including the ‘name’, ‘legal representative’ and ‘business scope’ fields, a QR field has been added, making it possible to go directly to the website of the company information system and look up information about the company. The two sides of a deal only need to scan the QR codes on each other’s business license, and they can find out about their authenticity. Normal consumers can also use the same method to check the authenticity of a company’s business license.

降低注册成本
Reducing Registration Costs

2月18日，国务院出台《注册资本登记制度改革方案》，明确注册资本登记制度改革于3月1日全面实施。
On the 18th February, the State Council officially launched the “Plan for the Reform of the Capital Registration System”, specifying that the reforms to the capital registration system would be fully implemented on 1st March.

方案从五个方面提出优化营商环境的改革措施：
The plan puts forward five aspects for improvement of the business environment:

1. 一是实行注册资本认缴登记制，由公司股东（发起人）自主约定认缴出资额、出资方式、出资期限等，并对缴纳出资情况真实性、合法性负责。
   Implement a registration system for the handover of registered capital, whereby company shareholders or founders independently commit to registering the amount, manner, time period etc. for funding, and take legal responsibility for the authenticity and circumstances of funding.
2. 二是放宽注册资本登记条件。除法律、法规另有规定外，取消公司注册资本最低限额，不再限制公司设立时股东（发起人）的首次出资比例和缴足出资的期限。
   Relax requirements for registration of capital. Apart from legal, legislative and other provisions, the lower limit for the amount of capital registration is to be abolished, the ratio of capital payment by shareholders or founders for the establishment of a company will no longer be restricted,  and the payment of capital will no longer have a time limit.
3. 三是将企业年检制度改为年度报告公示制度，任何单位和个人均可查询。
   Yearly company inspections will be changed to a system of displaying yearly reports which any organisation or individual can look up.
4. 四是简化市场主体住所（经营场所）登记手续，由地方政府具体规定条件。
   Simplify the procedure for registering the addresses of market entities, according to the specific conditions set out by local governments.
5. 五是推行电子营业执照和全程电子化登记管理。
   Implement electronic business licenses and completely digitised registration management.

— Source: newssc.org