Watchdog cuts red tape on electronic seals, licenses
A company representative demonstrates the application process for an e-license and e-seal.
Shanghai's market watchdog cut red tape for enterprises in the city on Wednesday by introducing the synchronous issuance of electronic operating licenses and seals amid the coronavirus pandemic.
"The e-versions of licenses and seals have the same legal power as physical licenses and seals," said Chen Xuejun, director of the Shanghai Administration for Market Regulation.
Previously, companies were allowed to apply for electronic seals only after they received physical licenses and seals, which are mandatory in order to operate a business.
Applicants were also required to present original paper licenses, as well as copies, before they could get an e-version of their seal, said Chen.
"Now, electronic licenses and seals are automatically generated when a company's business operation is approved, and they can receive both at the same time via mobile phone," said Chen.
The electronic versions can be downloaded via WeChat, Alipay or Suishenban Citizen Cloud, an app for Shanghai's one-stop platform for government affairs, according to the administration.
"Enterprises can sign contracts and conduct business operations online with their electronic licenses and seals," said Chen.
They are also allowed to apply for registration, publicize their annual reports, handle tax affairs and social insurance affairs online with the e-licenses and seals, the administration said.
"The new measure is a reform and breakthrough in the business environment system, and improves government affairs services," said Chen. "It is another step forward toward paperless business."
Three Shanghai companies were the first to receive the e-licenses and seals in the city on Wednesday morning.
"It's very convenient with simple clicks online," said Chen Jin, with Yanxin Gardening Decoration Co Ltd.
"The whole process is done online, which is particularly good amid the coronavirus epidemic," he said.
Chen Jin has already registered three companies.
"When I applied for a business operating license for one of my companies in 2012, I needed to visit different government authorities in Songjiang District to apply for tax affairs, a seal and a license," he said. "It involved at least seven to eight visits and sometimes I needed to visit again due to insufficient materials."
"It took me more than 10 working days to have everything arranged," he added.
He said he will still apply for a physical seal, but for now his company can operate with an e-version, which he says can be recognized by 80 to 90 percent of his clients.
