The New Five-in-One Business License in China
In this article, we provide the overall idea of the new five-in-one business license in China:
- What is five-in-one business
- How HROne can be beneficial
With an intent to expedite improvements in the business registration process, The State Council issued a circular in July 2016 announcing their decision to implement the five-in-one business license in October 2016 with the aim of lessening the processes of administrative sanctions and to ease market entre for new businesses in China and to further develop the business environment in China. The ‘Five-in-One’ business license shall replace the previous ‘Three-in-One’ business license, introduced in China earlier.
Once you register your company, you can hire Chinese as well as foreigner employees for your company, arrange work visa for the foreigner employees, pay their salaries and contribute their mandatory benefits (social insurance and housing fund contributions). For more information regarding hiring employees in China, please click.
The new business license shall hold a unique national credit number that includes public security code, social security code, business license, organization code certificate, and tax registration certificate. It will also consist of a QR code which can be easily scanned by smartphones to get all relevant company information. The State Council also aims to launch an online management system for business registration and an information sharing platform between all the departments involved in the process for the ease of implementation. It also encourages the extensive usage of the new license ensuring recognition and acceptance by all government administrative bodies.
The new five-in-one business license will simplify the social insurance registration process for new enterprises. Start-ups can now complete commercial and industrial registration procedures and simultaneously register for social insurance. It will also ease the banking formalities since there is no need to provide bank account information while registering. On registering a new business for the new five-in-one business license, social insurance bureaus will receive the data provided by the industrial and commercial departments and will create and file a Social Insurance Registration Form. If a company modifies its information or deregisters itself, the social insurance bureau will update the social insurance registration information of the company according to the data provided by the industrial and commercial department.
How HROne can be beneficial to your business in China
HROne’s service can handle the complete employee benefits for your company in compliance with the local policies and also can take care of the visa for your company’s expatriate employees. We can directly hire employees for a company not having a legal entity in China by our specialized Employee Leasing/Talent dispatching services.
The information contained in this article is valid on October 25th, 2016. For updated information, please contact us via email at firstname.lastname@example.org.