Incorp China

China’s 3-in-1 license

What is the 3-in-1 license?

The 3-in-1 license is a new format of the business license currently in existence. By the end of the calendar year 2017, all original business licenses must be updated in order for the company to be able to continue operating. The updated business license will merge three company certificates – the firms’s business license, tax certificate and organization code – that had to be issued separately so far. As a result, your company will officially run under a single social credit code.

Why implement such a change?

This new legislation is being enforced only months after the government’s update of the fapiao system. (Read more about that here.) Both legislative changes follow the common goal of better communication between government bureaus, streamline official procedures and ensure a more centralized supervision of all companies.

How to switch from a standard business license to the new model?

There are nine steps to updating your business license.

1. Prepare your application, consisting of an Application Form, Application Report, your current business license, tax certificate and organization code certificate.
   This application then has to be submitted to multiple institutions in order to update their record.
2. The Commercial and Industrial Administration Bureau will be the first to receive your application.
3. Upon approval by CIAB, the documents have to be submitted to both the local Tax Bureau and National Tax Bureau, to update their records
4. After getting approval from the above tax bureaus, the Market and Quality Supervision Commission will need to be updated
5. Then, all banks your company is holding accounts with have to be notified by providing them with the approved documents
6. At the local Foreign Exchange Registration Bureau, your Foreign Exchange Registration Certificate has to be updated with your new business license
7. Your new information will also be captured in your Financial Registration Certificate at the Finance Bureau
8. Afterwards, the Social Insurance Bureau…
9. …and lastly, the Housing Fund Bureau will have to be updated.

All in all, this will take a few weeks to complete. The new business license model is mandatory for all types of business entities, apart from self-employed individuals.

Does this apply to every region equally?

In Shenzhen and Zhejiang Province, the 3-in-1 license will technically be a 5-in-1 license, also replacing the Social Security Registration Certificate as well as the Statistics Registration Certificate. Shanghai and Guangzhou, however, decided to abandon the Statistics Registration Certificate altogether. Beijing-based companies benefit from an extended transition period, ending with the calendar year 2020. Some provinces do handle their transitions with slight variations, however generally the updated legislation affects businesses across China equally.

Why go through all the hassle by yourself? Incorp China will happily assist you with your move from a standard business license to the updated 3-in-1 model. Your top priority is to look after your everyday business. It is ours to support you.

In case you have any questions or are looking for a free consultation, please don’t hesitate to contact us. Call us or write us an email: +1 (561) 729 6508, info@incorpchina.com.

We do much more than just looking for your business license!

Have a look at our different services here.

Or read about how we can help you open a bank account – even under tightening restrictions for foreigners – here!