The pilot implementation, in Pudong New Area, Shanghai, and wider replication and promotion of the reform of "separating operating permits and business licenses" has effectively reduced the institutional transaction costs of enterprises and achieved remarkable results. In order to further solve the problem of "prohibition against doing relevant business although having access to the relevant market", stimulate the vitality of market players, accelerate the profound transformation of government functions and create a legal, international and convenient business environment, the State Council has decided to promote the reform of "separating operating permits and business licenses" nationwide on the basis of the previous pilot implementation thereof.

It is highlighted in the Circular to cut back on the permits and certificates now required once a business license is issued and cut all that can be cut, and merge all that can be merged. Appropriate management methods shall be adopted to minimize examination, approval and issuance of certificates, effectively distinguish the functions of " certificates" and "licenses" and strive to solve the problem of "prohibition against doing relevant business although having access to the relevant market". It is necessary to promote the reform methods in accordance with the law by directly canceling the approval of enterprise-related administrative approval items, subjecting such items to record-filing instead of approval, applying the notification commitment system to such items, and optimizing access services for such items. A  comprehensively reform on examination and approval methods shall be conducted to streamline permits and licenses related to enterprises, strengthen in-process and ex post comprehensive supervision and administration, and innovate government management methods, so as to further create a stable, fair, transparent and predictable market access environment, fully release market vitality and promote high-quality economic development.

(Source: www.gov.cn )