On 14 May 2018, the General Office of the State Council issued the Opinions on Further Reducing Enterprise Launch Time, with immediate effect.
The opinions are aimed at reducing the time it takes to form a new company and obtain related administrative approvals from the current average of 20 business days to 8.5 business days. The changes are expected to be implemented in all provincial-level cities by the end of 2018 and throughout the nation by the first half of 2019.
The opinions transform the traditional company formation procedures, where an applicant submits application materials to several government agencies, into a "single-window acceptance and parallel processing" procedure. Under the simplified procedure, the applicant only submits the materials to the competent local office of the State Administration for Market Regulation, which shares the information electronically with the other relevant departments in charge of supervising the new company.
The opinions also permit applicants to:
- Carry out enterprise registration with a self-declared enterprise name, except where a pre-incorporation approval is required or where enterprise name verification and establishment registration are with different departments.
- Obtain official company seals from any supplier listed on a directory of qualified providers, and require providers to engrave the seals within one day and make a filing with the relevant public security departments.
The opinions follow a recent series of moves to improve the efficiency of the company formation process.