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Interpretation of "Interim Measures on Managing the Registration of Residences (Business Premises) by Market Players in Jilin Province" by Jilin Province Administration for Industry and Commerce
2015/03/11     Source:

Recently, the provincial government issued "Interim Measures on Managing the Registration of Residences (Business Premises) by Market Players in Jilin Province" (hereinafter referred to as "Interim Measures") to further simplify the procedures for market players to register residences (business premises), reduce the market access threshold and put forward requirements on standardizing the management of residences (business premises) and maintaining the economic and social order. The "Interim Measures" will officially go into effect on January 1, 2015. Relevant problems are interpreted as follows.

First, the background for drafting

"The Plan for Institutional Reform and Functional Transformation of the State Council" passed by the first session of the 12th NPC decided to reform the industrial and commercial registration system to change the registered capital paid-in registration system to the registered capital subscribed registration system and relax restrictions on other conditions for industrial and commercial registration. On February 7, the State Council promulgated "The Reform Plan for Registered Capital Registration System" (national issuance [2014] No. 7) to clearly require simplifying the procedures for market players to register residences (business premises) and authorize provincial people's governments to make specific provisions on residences (business premises) of market players on their own accord in accordance with the laws and regulations and the actual needs of local management and following the principle of both facilitating the access of market players and effectively guaranteeing the economic and social order.

On August 2012, Jilin Provincial Government issued "Trial Opinions on Promoting Market Players in Jilin Provincial Province to Further Develop and Grow" to relax restrictions on a series of conditions for market players to register residences (business premises), which has greatly reduced the costs for starting a business and been widely welcomed by market players. To further stimulate the vitality of market players and ensure innovation and entrepreneurship, based on summarizing the early-stage practices, in accordance with relevant national requirements and combining with the actual condition of the province, the province developed the "Interim  Measures".

Second, the main contents and bright spots

The "Interim Measures" consist of 15 terms. In line with the principle of giving equal attention to facilitating access and standardizing management, the "Interim Measures" clearly defined the conduct of government organs on managing registration and meanwhile put forward specific requirements on the legal use of residences (business premises) by market players.

The first bright spot: Business licenses can by handled without property ownership certificates.

Term 4 regulates applicants can register as long as submitting proofs on the legal use of sites. This term relaxes restrictions for registering (recording) residences (business premises) of market players and greatly simplifies the registration procedures. When applying for registering residences (business premises), if using own properties, submit copies of property ownership certificates; if renting properties, submit copies of property ownership certificates of lessors and property renting agreements; for not obtaining property ownership certificates, submit proofs issued by real estate management departments; for not having proofs issued by real estate management departments, submit copies of housing completion and acceptance proofs, house purchase contracts and housing sales permits; if lessors are hotels and restaurants, submit copies of business licenses of hotels and restaurants; for unable to submit these documents, submit relevant proofs issued by local people's governments or affiliated agencies dispatched, management committees of various development zones (parks) and residents (villagers) committees. For using military properties, submit copies of "military real estate leasing license". This has opened up a "green channel" for taking a lot of properties reaching the housing condition but not obtaining property ownership certificates in the province as residences, greatly released the existing site resources and facilitated more market players to enter the market.

Tip: In the future, the administrative departments for industry and commerce, when registering, will only conduct formal examination on materials submitted by applicants but not check the use and function of residences (business premises) to further improve the efficiency of registration. Applicants are responsible for the authenticity and legitimacy of materials submitted.

The second bright spot: Allow "one site with multi-licenses".

Term 6 regulates allow one site to be registered as residences (business premises) for multiple market players. This is the first time the province puts forward to allow "one site with multi-licenses" in a normative document and facilitates a large number of individual industrial and commercial households, small and micro enterprises and college students to start a business. The implementation of "one site with multi-licenses" has broken the past restriction that one site only can be registered for one market player and greatly reduced the market access threshold. In the future, it will be legalized that several students open online shops in the same dormitory respectively and several individual industrial and commercial households use the same shop for engaging in business activities. The move has greatly reduced the cost of market players on housing space and will greatly boost the rapid development of market players in the province.

Tip: Market players engaging in business items permitted, if wanting to share the same site as residences (business premises), must apply for handling licensing procedures from relevant license examination and approval departments prior to carrying out business activities to make sure if owning the necessary conditions to carry out business activities.

The third bright spot: Allow "one license with multi-sites".

Term 7 regulates market players (except branches and sub-branches and individual industrial and commercial households), when adding business premises to engage in general operating items and the business premises are within the same county-level administrative divisions with residences, can apply to the administrative departments for industry and commerce for recording and giving clear indication of the sites of business premises in business licenses to exempt from handling registration of branches and sub-branches. The operating income of business premises recorded should be included into that of residences for unified accounting.

Tip: Allowing "one license with multi-sites" not only avoids troubles for enterprises to manage several licenses, but also is helpful for integrating branches and sub-branches to help enterprises to achieve large-scale development and have great significance for the development of market players and especially e-commerce, culture and creativity, chain management and other emerging formats. Notably, market players need to meet three requirements for achieving "one license with multi-sites". First, business activities engaged must be general business activities without needing permission; second, business premises added must be within the same county-level administrative divisions with residences; third, the operating income of business premises filed should be included into that of residences for unified accounting.

The fourth bright spot: allow "changing residential housing for commercial use" within limits.

Term 8 regulates applicants, if wanting to changing residential housing to business premises, should abide by relevant laws, regulations and management rules, get approval from the interested owners and tally with relevant national and provincial mandatory technical standards to ensure the structural safety and fire safety of buildings. Business activities engaged should not affect the normal life order of residents, have safety hazards, pollute the environment and affect the health and life and property safety of residents. Applicants are responsible for the legality of using residences (business premises).

In August 2012, the "Trial Opinions on Promoting Market Players in Jilin Provincial Province to Further Develop and Grow" for the first time put forward to allow changing residential housing for commercial use. In the two years of implementation, it has played an important role in releasing site resources and reducing costs for starting a business. The "Interim Measures", based on continuing the existing practices, strictly define the condition for changing residential housing for commercial use and strive to effectively protect the legitimate rights and interests of citizens and maintain the normal social order while encouraging starting a business. For example, applicants need to get approval from the interested parties for changing residential housing for commercial use and must ensure the building safety and fire safety. Business activities engaged should not affect the life of residents. Applicants are responsible for the legality of using residences (business premises).

Tip: There are four industries not allowed to changing residential housing to engage in business activities, such as entertainment venues, Internet surfing services (Internet bars), hazardous chemicals production, storage and management, and fireworks production, storage and management. If market players have a dispute with the interested parties on the use of residences (business premises), the parties can make a complaint to the relevant government departments or initiate legal proceedings to the people's courts to protect their own rights and interests.

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