Business Registration Reforms in China : A Case Study
In the past, the business registration system in China was complicated and market access was highly restricted and regulated. The business registration process focused too much on administrative approvals for market entry and not enough on oversigh...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099615006032282559/P1760870e785010a90be7b095c05b65adfb http://hdl.handle.net/10986/37504 |
| Summary: | In the past, the business
registration system in China was complicated and market
access was highly restricted and regulated. The business
registration process focused too much on administrative
approvals for market entry and not enough on oversight of
firm activities. Firms are not allowed to start operations
before being registered and receiving a business license and
the business license is the only document indicating a
firm’s legal identity. Before the 2014 business reform
initiative, firms were also legally required to obtain
various registration certificates in addition to a business
license. People’s Republic of China (PRC or China) has been
making a great effort to simplify its business registration
process, enhance its efficiency, and reduce its cost. China
has reduced both the amount of time and the number of
procedures required to start a business by more than two
thirds within the past decade.In 2014, China launched a
country-wide multi-year National Business System Reform
Initiative to ease market access, making it easier to start
a business by streamlining administrative procedures, while
strengthening post-registration supervision by setting up
the corporate social credit system. China has made
remarkable progress to reform its business registration
system over the past decade, cutting the number of
procedures to register a business by more than two-thirds,
and shortening time to register from 34 days in 2014 to 9
days in 2020. |
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