Pudong's market access commitment reform boosts vitality of businesses

A new enterprise commitment and instant business licensing system, implemented in Pudong New Area of Shanghai on Aug 1, 2022, has boosted the vitality of enterprises by streamlining procedures for market access. The system was selected as one of the top 10 innovative practices in improving the business environment by the National Development and Reform Commission in September.

The "commitment and instant licensing system" means the reform measures in which a market participant is first informed of all the conditions and standards required to engage in a licensed business item of a specific industry at one time. It may then obtain an administrative license instantly after making a written commitment that it has met requirements and submitting the necessary materials.

On the first day of the implementation of the system, Zhou Hui, the operating director of M Stand Coffee, applied for and immediately received a business license approval in line with the instant licensing regulation.

"Before, opening a new store required obtaining many permits, taking at least around a month. Now, with the implementation of the system, we can receive a license covering multiple permit functions immediately, which is very convenient for us," Zhou said.

The reform has been expanded from 10 pilot industries such as convenience stores, supermarkets, and restaurants to 22 other sectors such as transportation, and human resource services, allowing more business entities to enjoy the benefits of the system.