FTZ reform benefits more businesses

The separation of business licenses and administrative approvals in the China (Shanghai) Pilot Free Trade Zone has benefited a growing number of businesses, such as fresh products delivery in new retail, vocational training, medicines from lab to shelf, cosmetics imports, registration of medical devices and the qualification of construction enterprises.

Amid the reform, the number of new taxpayers (business entities) in Pudong increased by 29 percent in 2017, compared to the end of 2015.

The registration process for the establishment of an enterprise in the free trade zone now takes two days at most.

The first-time import of non-special use cosmetics — defined as make-up, hair, skin and nail care products, and perfume — is now subject to record filing that replaces the previous registration and approval system with the time required shortened from three to six months to three to five business days.

The number of applications for construction enterprise qualification in 2017 and 2018 has increased by 144 percent and 111 percent respectively compared to 2016.

The State Council has decided to promote the reform nationwide.

At the same time, a new management approach, mainly the in-event control and subsequent monitoring, is being improved. A government comprehensive monitoring system has been established to ensure the sharing of information among registration, licensing, monitoring and law enforcement departments which involves 21 government agencies in the free trade zone and 108 business sectors.

The free trade zone also optimizes its services and is dedicated to building an all-in-one online platform to facilitate company applications and registration.

The platform, which went online in March, can cope with all 327 business-related matters in the free trade zone. About 53 percent of these can be approved online. The time taken on average has been shortened from 22 to 3.3 working days.

Institutional innovations have inspired entrepreneurship.

More than 57,000 new enterprises have registered in the free trade zone since it was established five years ago. Nearly a fifth of these new firms are foreign-invested involving US$25 billion of investment.