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Dalian Free Trade Zone Launches “Permits-Business License Separation 2.0”

First in Northeast China! Dalian FreeTrade Zone Launches “Permits-Business License Separation 2.0” and Realizes “Permits-BusinessLicense Synchronization” in an All-round Way

Recently, the Administration Committee of DalianFree Trade Zone issued the Plan toImplement the Reform of Subject Qualification and Operation Qualification ofDalian Free Trade Zone (hereinafter referred to as the Plan), whichspecified that Dalian Free Trade Zonewould implement “permits-business license synchronization” reform measures fromMarch 1, 2019. This marks that the reform of “permits-business licenseseparation” of China (Liaoning) Pilot Free Trade Zone Dalian Area has steppedinto the “deep water area”.

“Permits-business license synchronization” is the 2.0 version of thereform of “permits-business license separation”. “Permits-business licensesynchronization” means that the registration of “subject qualification” and theexamination and approval of “operation qualification” are started simultaneously,the application for the examination and approval of “operation qualification”can be submitted at the same time as the registration of “subject qualification”,and relevant business approval departments start the examination and approvalprocedures synchronously.

In this reform, Dalian Free Trade Zone, in line with the principle of “takingthe initiative to try and act”, accurately grasps the connotation of “permits-businesslicense separation”, deepens the reform focus from “permits reduction afterbusiness license” to “building the institutional system and management model ofseparating subject qualification from operation qualification”, and establishesa standardized and efficient market access system and management modelcharacterized by “subject qualification-operation qualification separation” inDalian Area.

1. Promote pilot projects of relatively centralized administrativelicensing

The “subject qualification” registration system will be consolidated.Dalian Area Commercial Registration Center will be established to strengthenthe work of “subject qualification” registration. Market access of commercialsubjects will be relaxed to give full play to and guarantee the right of freeoperation of “subject qualification”.

The system and mechanism for examining and approving “operationqualification” will be innovated. A linkage mechanism for the examination andapproval of “operation qualification” will be established, ex-ante service forthe examination and approval of “operation qualification” will be wellprovided, information sharing and coordination among various departments willbe strengthened, and the efficiency of the examination and approval of “operationqualification” will be further improved. The supervision of “operationqualification” will be conducted in accordance with the principle of “the person who examines, approves and manages should take theresponsibility”, the administration supervision resources will be used in a scientificand effective way, and the transformation of comprehensive supervision to risksupervision will be promoted to carry out “supervision for future reference”for low-risk subjects and “key supervision” for high-risk subjects.

2. Further optimize service for the registration of “subject qualification”

“Theme” examination and approval service will be provided. An examinationand approval service model in which multiple examination and approval itemsunder one “theme” of demand of an enterprise are simultaneously completed willbe explored and established. Starting from the start-up of an enterprise, theexamination and approval model of “one thing, one submission, one examinationand approval” will be realized gradually. By the end of March 2019, one-timesubmission for “enterprise start-up” will be realized, and procedures of “businesslicense, seal, tax registration, foreign trade registration and bank accountopening” will be ready at the same time. By the end of 2019, for one thing anenterprise applied for, the government shall finish the examination andapproval once for all.

“No meeting” examination and approval will be promoted with vigor. Relyingon the functions of platforms of “WeChat Official Account” and “Free Trade Pay”,oriented by the needs of enterprises, using APP or WeChat Mini Program, it ishoped that the registration procedure of “subject qualification” can be donewithout leaving home in mid-March.

The registration procedure of “subject qualification” will be furthersimplified.

Address proof documents will be canceled. For enterprises using “centralized registration sites”,address proof documents will be canceled;

ID card verification will be canceled and on-site or remote legal person statusface recognition will be adopted;

Operationqualification permission list willbe specified on the business license.

“New form of industry” standard management mechanism will be introduced.The Provisional Measures for Market Access of New Forms of Industry in DalianArea will be issued in March, which introduces expert evaluation mechanism andstandardizes the market access of emerging market entities in new industriesand new business models.

3. Innovate “operation qualification” examination and approval service

“Permits-business license synchronization” examination and approval willbe implemented comprehensively. The application for the examination andapproval of “operation qualification” can be submitted at the same time as theregistration of “subject qualification”, and relevant business approvaldepartments will start the examination and approval procedures synchronously.

       Theexamination and approval model of notification commitment system will befurther standardized. Taking “examination and approval of the sales andbusiness permit of pre-packaged food” as a trial, we will try to change thenotification commitment system from “important documents commitment” into “matterscommitment”. Measures for implementing notification commitment system of “operationqualification” examination and approval will be formulated to specify thenotification commitment matters, provide standard model texts and improve themethod for formative and ex-post supervision. For applicants whopromise to meet the conditions for examination and approval and have submittedthe letter of commitment, examination and approval will be conducted on thespot. Market entities should keep their promises and engage in specificbusiness activities only after they have reached the legal conditions. Relevantdepartment will strengthen formative and ex-post supervision and carry outroutine inspection with full coverage. If the actual situation is found to beinconsistent with the promised content, the examination and approval will berevoked according to law and heavier punishment shall be imposed.

The latest requirements of “permits-business license separation” will be fullyimplemented. In accordance with the requirements of the Notification on Issuing the Implementation Plan for Comprehensively Promotingthe Reform of “Permits-Business License Separation” in Dalian City, weshould conscientiously carry out the specific work of “cancellation ofexamination and approval, replacing examination and approval with records,notification commitment and optimization of market access service”.