Shanghai to impose US$47,400 fine on businesses violating commitments or conditions

Shanghai will impose a fine of up to 300,000 yuan (US$47,462) on business applicants who violate commitments they made to government authorities or fail to ensure the necessary conditions for their operations.

The fine is contained in measures the Shanghai government unveiled that will come into effect on Tuesday.  The measures also allow for stricter supervision and regulations to be imposed on businesses.

The measures require applicants who fail to meet the approval conditions for their businesses to rectify the shortcomings within two months. The approval will be withdrawn if their businesses still do not qualify after the rectification.

Applicants will be warned for violations of previous commitments they made. They will be liable to a fine of up to 300,000 yuan if their violations lead to harmful consequences such as food poisoning.

Shanghai has been making efforts to improve and simplify the process for starting a business. The government allows qualified firms to be approved for business permits before they have to submit required materials within a designated period in a move to make it more efficient and convenient for companies to do business.

The city's administrative approval authority will notify the applicant of the approval conditions and the materials required to be submitted together. The applicant can submit in writing his commitment to meet the approval conditions to get permits ahead of schedule.

"These measures are developed for the purposes of optimizing the administrative approval procedures, improving the management method, and enhancing administrative efficiency," Mao Ronghua, director of the municipal government's Legislative Affairs Office.