Recently, the newly amended Provisions on Business Permit of Public Air Transport Enterprises (the Provisions) was officially published, and has come into force. The new Provisions will help further strengthen market regulation and regulate business licensing of public air transport enterprises.

The Provisions consists of 51 articles in 7 chapters, which compared with the original version follows the principle of streamlining administration, delegating power and strengthening regulation. It made adjustment to the materials required for business permit application as per the “License before Permit” management approach, for example the notice on pre-approval of enterprise name was substituted by business license, and the reform on registered capital system rendered it no longer necessary for the enterprises to submit capital verification report.

In addition, to alleviate the burden on the enterprises from the change in business permit, the new Provisions removed from business permit the same content as that on business license, i.e., business permit will no longer include such information as enterprise address, registered capital, enterprise type and legal representative, but only name of enterprise, name of the airport for its main business, and business scope. In the meantime, by referring to the practice of industry and commerce department replacing annual inspect with annual report, and learning from the annual report system of listed companies, the new Provisions replaced the 3-year time limit with an indefinite duration on the validity of business permit, and sought to strengthen regulation through the annual report mechanism.