Notice of the General Office of Shanghai Municipal People’s Government on Transmitting the Implementation Procedures for Parallel Examination and Approval of the Establishment of Enterprises in Shanghai (Trial Implementation) Formulated by the Municipal Administration of Industry and Commerce and the Municipal Commerce Commission

(October 10, 2009)

                                                    SMPG GO G [2009] No.43

Attention: All District and County People’s Governments, and all relevant Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government:

The Implementation Procedures for Parallel Examination and Approval of the Establishment of Enterprises in Shanghai (Trial Implementation) formulated by the municipal administration of industry and commerce and the municipal commerce commission have been approved by the Municipal People’s Government. We hereby transmit them to you, and request you to implement them conscientiously.

The Notice of the General Office of Shanghai Municipal People’s Government on Printing and Distributing the Procedures of Shanghai Municipality on “Parallel Examination and Approval” of Enterprises Registration (SMPG GO G [2001] No.33) is forthwith repealed.   

Implementation Procedures for Parallel Examination and Approval of the

Establishment of Enterprises in Shanghai (Trial Implementation)

Article 1 (Purposes and Basis)

With a view to further transforming government functions, raising the transparency of administrative examination and approval, and perfecting the work of examination, approval and registration in respect of the establishment of enterprises in Shanghai, these Procedures are formulated in accordance with the relevant provisions of the Administrative Permit Law of the People’s Republic of China and the Trial Procedures of Shanghai Municipality on Parallel Examination and Approval.

Article 2 (Application Scope)

These Procedures apply to this Municipality’s administrative organs carrying out parallel examination and approval in respect of the enterprise establishment.

These Procedures may give reference to and apply to the Shanghai-based agencies of the State competent administrative departments and this Municipality’s administrative departments in jointly carrying out parallel examination and approval.

Article 3 (Work Mechanism)

A Joint meeting for parallel examination and approval of enterprise establishment that is convened by the office of municipal leading group for reform work of the administrative examination and approval system and joined by the Legislative Affairs Office of the Municipal People’s Government, the municipal commerce commission, the municipal administration of industry and commerce, and the municipal development and reform commission shall be set up, responsible for pushing ahead with the carrying out of the work of parallel examination and approval.

Article 4 (Organization Promotion)

The office of the municipal leading group for reform work of the administrative examination and approval system is responsible for the organization, supervision and assessment in respect of the parallel examination and approval of this Municipality’s enterprise establishment.

The department for administrative examination and approval reform work designated by the district/county people’s government is responsible for the organization, promotion, supervision and assessment in respect of the parallel examination and approval of enterprise establishment in its administrative area.

Article 5 (Taking Lead in Execution)

The municipal, district/county industry and commerce administration is the department taking the lead in parallel examination and approval at the registration stage of enterprise establishment which, under the jurisdiction authority of enterprise registration, undertake the taking-the-lead duty of parallel examination and approval of enterprises they register. Matters at that stage of parallel examination and approval include examination and approval of enterprise business lines, registration of enterprise establishment, registration of organizational code number certificate and registration of taxation register.

In the case of a foreign-funded enterprise involved, the municipal, district/county competent commerce administrative department acting as the department taking the lead in parallel examination and approval at the examination and approval stage for the establishment of foreign-funded enterprises, undertake, under the power purview of examination and approval of foreign investment, the take-the-lead duty of parallel examination and approval of the foreign-funded enterprises under their examination and approval. Matters at that stage of parallel examination and approval include the ratification of foreign investment project, the examination and approval of enterprise business lines, foreign-funded enterprise contracts and constitutions. The foreign-funded enterprise, upon the completion of examination and approval for the establishment, shall be brought into the parallel examination and approval for the enterprise establishment registration. 

Article 6 (Departments of Parallel Examination and Approval)

The municipal, district/county administrative department of quality and technical supervision, taxation, ratification of the foreign investment projects, and departments relating to administrative examination and approval of enterprise business lines are the departments for parallel examination and approval of the work on examination, approval and registration of this Municipality’s enterprise establishment (hereinafter referred to as “departments of parallel examination and approval”).

Article 7 (Prior Services)

The take-the-lead department of parallel examination and approval at the registration stage of enterprise establishment, the take-the-lead department of parallel examination and approval at the establishment examination and approval stage of the foreign-funded enterprises (hereinafter referred to as “take-the-lead department”) and the department of parallel examination and approval shall, according to the applications of parties, provide prior services as follows:

1. provide services of pre-event guidance on inquisition for such foundation work as  location selection and on-the-spot survey involved in the administrative examination and approval; and

2. provide consulting services for examination and approval matters that are much more professional or for important documents that are more complex in examination and approval.
　　The parties may use such forms as letter, telephone, fax, electronic data exchange or email or go to the examination and approval department to directly make arrangement for prior services. 

Article 8 (Publication)

The department of parallel examination and approval shall provide the take-the-lead department with a guide of handling affairs including matters, basis, conditions under its examination and approval, a catalogue of application materials, demonstration text, charge criteria and basis, processing procedures, time limit, matters and modes of prior services, and the relevant statements and explanations. In the case of any modifications in the guide of handling affairs provided by the department of parallel examination and approval, an updated guide shall be given to the take-the-lead department within five workdays.

The take-the-lead department shall make public in the examination and approval office a guide of handling examination-approval matters involved in parallel examination and approval, and have it available to applicants.

The take-the-lead department and the department of parallel examination and approval shall make public the guide of handling affairs on the government website so that applicants may get convenient access to it.
　　Article 9 (Notice to Applicants)

When an application made by an applicant for the administrative examination and approval involves the parallel examination and approval, the take-the-lead department shall notify in written form at a time the applicant of such contents as specific matters, conditions and application materials catalogue in relation to the parallel examination and approval.

Article 10 (Submission, Receipt and Hand-over of Application Materials)

An applicant shall, according to the contents in the written notification, submit application materials to the take-the-lead department.

The take-the-lead department shall take over in a uniform manner the application materials submitted by applicants, and, after checking the complete materials on the spot, issue a receipt voucher to the applicants.

The take-the-lead department shall, within one workday after the day of issuing the receipt voucher, hand over the relevant application materials to the department of parallel examination and approval; in the special case of real incapability of proper hand-over, a delay of one workday is allowed.
　    Article 11 (Additions to and Corrections of Application Materials)

After receiving application materials, the department of parallel examination and approval, upon examination, needing additions to or corrections of the application materials, shall notify at a time the applicant within three workdays after the day of receiving the application materials. 

Article 12 (Coordination)

The take-the-lead department shall conduct coordination, needed in the course of parallel examination and approval. With incapability of coordination by the take-the-lead department, a department designated by the government at the same level shall conduct coordination; in need of coordination between the departments of parallel examination and approval at both the municipal and district/county levels, coordination shall be conducted by a department designated by the Municipal People’s Government. 
　　Article 13 (Decision of Examination and Approval)

The take-the-lead department and the department of parallel examination and approval shall, within the prescribed time limit, make a decision of examination and approval according to law.

 The take-the-lead department shall, within the prescribed time limit, notify the decision of examination and approval to the department of parallel examination and approval; the department of parallel examination and approval shall, within the prescribed time limit, notify the decision of examination and approval to the take-the-lead department, and other departments of parallel examination and approval that are to conduct examination and approval by such a decision.

Upon making a decision on ratifying the administrative examination and approval, the take-the-lead department and the department of parallel examination and approval shall, within the prescribed time limit, respectively issue and serve the permission certificates or ratification documents to the applicant; upon making a decision on denying the administrative examination and approval, the take-the-lead department and the department of parallel examination and approval shall respectively notify in written form the applicant, explain reasons for the denial thereof, and notify the applicant of the rights to apply for administrative reconsideration or lodge an administrative lawsuit according to law.
　　Article 14 (Publication of Results of Administrative Examination and Approval)

The take-the-lead department and each department of parallel examination and approval shall, in a timely manner, make public via the government website the results of examination and approval of matters for parallel examination and approval, so as to give convenience for the applicants to make real-time query and know the handling of matters for the administrative examination and approval.
　　Article 15 (Application of Notification-commitment)

Any matter in the parallel examination and approval involving the exercise of notification-commitment shall follow the relevant provisions concerning the notification commitment in this Municipality’s administrative examination and approval.

Article 16 (Online Parallel Examination and Approval)

Relevant departments shall accelerate the construction of the application system for online parallel examination and approval, push ahead with the exchange, sharing and application of enterprise basic information among departments, and raise the supervisory capacity and examination-approval efficiency.
　  Article 17 (Administrative Supervision)

The municipal, district/county supervision department shall strengthen supervision on the implementation of parallel examination and approval, and regularly report to the government at the corresponding level the matters of efficiency supervision. 
　　Article 18 (Follow-up Supervision)

Every department of the administrative examination and approval and every competent administrative department of industry shall establish and amplify the supervision and inspection system, define duties on the principle of “whoever makes examination and approval has the responsibility”, perform according to law the supervision duty, and strengthen the follow-up supervision.

Article 19 (Reference)

The parallel examination and approval of the establishment registration of this Municipality’s farmers’ specialized cooperatives and individual-owned businesses may take reference from these Procedures.

The parallel examination and approval of enterprises established in this Municipality by companies, enterprises and other economic organizations or individual persons in Hong Kong, Macao, Taiwan regions as well as Chinese citizens residing abroad may take reference from the foreign-funded enterprises to which these Procedures apply.   

Article 20 (Effective Date)

These Procedures shall be effective from the date of printing and distributing them to April 30, 2012. The Notice of the General Office of Shanghai Municipal People’s Government on Printing and Distributing the Procedures of Shanghai Municipality on “Parallel Examination and Approval” of Enterprise Registration (SMPG GO G [2001] No.33) shall be repealed simultaneously. 

Shanghai Municipal Administration of Industry and Commerce

Shanghai Municipal Commerce Commission

July 28, 2009