Zhanjiang to further cut red tape for starting businesses

Zhanjiang will decouple business licenses and operation permits -- both required for starting a business -- as part of a nationwide reform to be rolled out on Nov 10.

The move was announced at a conference held at the Zhanjiang Administration for Industry & Commerce on Oct 23. 

The reform is aimed at improving the business environment, energizing the market, and catalyzing stronger development. It was first piloted in Shanghai's Pudong New Area in December 2015 before its implementation across the country.

After the separation, companies will be able to begin doing business as soon as they get their business license. They won't need to secure operation permits except under specific circumstances.

The number of permits and certificates required after obtaining a business license will be reduced, as 116 business-related items will become exempt from government approval or require registration only.

Additionally, the practice of notification commitment will be applied to government review items that need to stay, and any non-compliance with permission requirements can be redressed through governmental oversight.

A market entity shall be approved for business activities when it commits to complying with all permission requirements. Any violation, however, may lead to license revocation or heavy penalties.