China Hails Establishment of Unified Market Entity Registration System to Drive Entrepreneurship and Innovation

77

Official state media is hailing the “basic establishment” of a unified system for the registration and administration of market entities in China, following a surge in the number of registered entities over the past decade.

China recently saw the release of the “Market Entity Registration Administrative Regulations” (市场主体登记管理条例) – the first set of administrative regulations that unify and standardise rules for the registration of various types of market entities.

State media said that the move marks the “establishment of a basic system for the registration and administration of market entities in China.”

“The release of the regulations is a major guarantee for the further nurturing and strengthening of market entities and expediting fair competition,” said Xiong Maoping (熊茂平) deputy chair of the State Administration for Market Regulation (SAMR) at a press conference held on 25 August.

“It is an important measure for protecting the lawful rights and interests of various types of market entities, stabilising the expectations and confidence of the market and expediting entrepreneurship and innovation, as well as consolidating and expanding the fruits of the reform of China’s commercial affair system.

“Driving the improvements to a more mature and settled basic system for market entity registration and administration is urgently needed.”

Under the Regulations the registered information of market entities will be subject to unified administration, including their titles, business scopes, registered capital and capital contribution sums.

The Regulations also further improve the system for the cancellation of market entities, helping to address complaints that the process for business cancellation has long been too difficult.

The number of registered market entries in China has risen from around 55 million in 2012 to approximately 145 million at present, for a near 160% increase over the past nine years, while the activity level of market entities has remained stable at around 70%.

LEAVE A REPLY

Please enter your comment!
Please enter your name here