The regulation on the registration management of market entities was passed at the State Council's executive meeting on April 14, 2021, and will go into effect on March 1, 2022, according to a State Council decree signed by Premier Li Keqiang.

It aims to standardize registration management of market entities, promote the construction of a law-based market, sustain a benign market order, protect the legitimate rights and interests of market entities, and optimize the business environment.

China will alleviate corporate burdens by optimizing registration procedures with fewer steps, simplified application materials and lower institutional costs, according to the regulation.

Market entities refer to natural persons, legal persons and unincorporated organizations that engage in business activities for profit within the country, the document said, including companies, non-company enterprise as legal persons and their branches; sole proprietorship enterprises, partnership enterprises and their branches; farmers' specialized cooperatives and their branches; individually owned businesses; foreign companies' branches; and other market entities stipulated by laws and regulations.

To improve the registration efficiency, authorities are required to handle the items on-site, one-time or under a time limit. Online settlement and cross-region settlement are also required, it said.

Common items required in registering a market entity include its name, entity type, business scope, domicile or main premise of business operation, registered capital or contributed capital amount, and name of legal representative, managing partner or principal.

According to the regulation, market entities must verify identities during registration, with applicants liable for authenticity, legitimacy and validity of submitted materials. Authorities should not ask for repeated submission of information that is available on the government service information sharing platform. Simplified registration cancellation procedures are also available for those meeting stipulated requirements.

Market entities should make public annual reports and registration information, as the regulation stressed strengthening supervision and management. Registration of a market entity will be revoked if it submits false materials or conceals important facts by fraudulent means.