On December 28, 2015, the Administration for Industry and Commerce promulgated the Opinions on the Administrative Work in Expanding Deregulation on the Application of Taiwan Residents for Registration as an Individual Industrial/Commercial Business Owner (hereinafter, the “Opinions”) primarily to encourage Taiwanese to invest and set up businesses in mainland China. Starting from January 1 this year, the conditions for Taiwanese applying for setting up individual industrial/commercial businesses in mainland China will be relaxed with respect to the industrial sectors involved, the geographic areas and operations.
The greatest benefit from the Opinions is that Taiwanese may directly apply to register individual industrial/commercial businesses pursuant to a specific scope of operations (excluding operations requiring special approval) without going through foreign investment review. From the 9 provinces and municipalities deregulated so far, (including Beijing, Shanghai, Jiangsu, Zhejiang, Fujian, Hubei, Guangdong, Chongqing and Sichuan Province), the Opinions added 17 provinces, municipalities under the direct jurisdiction of the State Council and autonomous regions, such as Tianjin, to regions in which the direct registration system is implemented. In addition, the restrictions on the number of employees and the physical area of the business are lifted. Taiwanese seeking to apply are required to prepare the following documents:
1. An application for the individual industrial/commercial business or for amendment to the individual industrial/commercial business registration signed by the applicant.
2. The registration form for Taiwan residents operating individual industrial/commercial business.
3. The entry/exit permit for the applicant as a Taiwan resident.
Registration matters concerning individual industrial/commercial business will still be handled and examined in accordance with the Regulations on Individual Industrial and Commercial Households, the Administrative Measures for Individual Industrial and Commercial Household Registration and all other relevant laws and regulations.