China softens restrictions on unregistered businesses

BEIJING - China on Wednesday unveiled a new regulation on unlicensed businesses in a move to ease restrictions and encourage entrepreneurship and innovation.

The regulation, effective from Oct 1, 2017, exempts licenses for people selling farm products and daily goods at sites and during time designated by governments at county or higher levels, and those using their skills to provide services that do not require approval according to the law.

Authorities responsible for cracking down on unregistered businesses must avoid simply shutting them down. Instead, they should help businesses obtain licenses and certificates, according to the regulation.

For uncertified businesses where there is no specific stipulation on the level of punishment, fines imposed on owners should be reduced and items necessary for such businesses must no longer be confiscated, it said.

The regulation also asks all authorities to perform their duties and improve regulation efficiency in the investigation and punishment of unregistered businesses.

China has been working to streamline business registration procedures to create a more favorable business environment.

A State Council meeting in April said that the government would cut red tape by integrating separate business licenses into one single license.