New regulation benefits firm via recovery period

"Influenced by the COVID-19, our company was having a hard time struggling, but since the new regulation granted us a period for recovery, we’re relieved somewhat now,” said Ms. Wu at a cleaning company in Chenggong district, central Yunnan’s Kunming city.

She successfully passed the business suspension procedures in the government service center within 10 minutes from online application to filing in the record. It was also the first case for a market entity in Kunming to register such business suspension.

A new regulation on the registration and administration of market entities, which took effect on March 1 this year, has set out unified business-suspension provisions for enterprises in China.

According to the regulation, a market entity can apply for business suspension for up to three years due to natural disasters, accidents, pandemics, or social unrest. During the suspension, the firm can stop its operations but keep the business license.

“The new regulation allows market entities to shut down business operation in the event of operating difficulties, resuming the business activities whenever they see it proper,” said a staffer with the Chenggong Market Supervision Bureau.

Source: Yunnan Net; Trans-editing by Mo Yingyi