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China to Promote Notification Commitment System Countrywide

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China to Promote Notification Commitment System Countrywide

On 9 November 2020, the General Office of the State Council of the PRC officially issued a guideline on full implementation of the notification and commitment system for certification issues and enterprise related license issues, which announced the full implementation of the notification commitment system in processing administrative affairs  nationwide.

  1. What is the notification commitment system for certification issues?

    Under the notification commitment system of certification issues, the administrative authorities of the government shall inform the applicant in written form (including electronic text) of the proof obligation, proof content and legal liability of false commitment when citizens, legal persons and other organizations apply to process administrative affairs. The applicant promises in writing that it has met the relevant requirements of the notification and is willing to bear the legal liability of false commitment. The administrative authorities shall no longer ask for relevant certificates and process relevant administrative affairs in accordance with the written commitment.

  2. What kind of certification issues are subject to notification commitment system?

    According to the guideline, the notification commitment system shall be applied to the certification issues that are closely related to business operation and people's livelihoods and are frequently used or difficult to obtain, especially in household registration management, market access, qualification examination, social insurance, social assistance, health examination, legal services, and etc.

  3. What kind of enterprise related license issues are subject to notification commitment system?

    The notification commitment system shall be applied to the enterprise related license issues when the mismatching behaviours of applicants can be rectified during and after the process.

  4. What kind of certification issues shall not be subject to notification commitment system?

    The notification commitment system shall not be applied to the certification issues directly related to nation security, state secrets, public security, financial industry prudential supervisor, ecological environmental protection or directly related to personal health, life and property safety as well as important foreign-related issues with high risks, high costs of error correction and irreparable damage.

    And the notification commitment system shall not be applied to those with bad credit records or false past commitments until credit is restored.

  5. When will the notification commitment system be fully implemented?

    According to the guideline, the governments of all provinces, autonomous regions and municipalities directly under the central government and departments of the State Council of the PRC shall formulate their implementation plans for full implementation of the notification commitment system in their respective regions and departments before 31 December 2020; and at the same time formulate a detailed plan to fully implement the system.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.



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