Interpretation of the "Regulations on Promoting the Development of Individual Businesses"

Interpretation of the "Regulations on Promoting the Development of Individual Businesses"

Background and Process of Formulation]

The "Regulations on Promoting the Development of Individual Industrial and Commercial Households" is an administrative regulation formulated to promote the sustainable and healthy development of individual industrial and commercial households, which reflects the state's care and care for the majority of individual industrial and commercial households. The "Regulations" are formulated on the basis of the original "Regulations on Individual Industrial and Commercial Households", which is more suitable for the current and future development characteristics of individual industrial and commercial households, and can better solve the problems faced by individual industrial and commercial households.

1. individual industrial and commercial households are a unique type of market subject in China, with a huge number and unique interests. Individual industrial and commercial households are the main body of the market with Chinese characteristics. They grow up in full competition, and the business risks are entirely borne by individuals or families. As of the end of September 2022, there were 0.111 billion registered individual industrial and commercial households nationwide, accounting for 2/3 of the total market entities, driving nearly 0.3 billion jobs, and playing an important role in stabilizing growth, promoting employment, and benefiting people's livelihood. In recent years, with the vigorous development of new technologies, new industries, new formats, and new models, "new individual economies" such as webcasting and micro-business e-commerce have emerged one after another, and their interests are unique. In this context, it is particularly urgent to establish a legal system that not only promotes development and regulates order, creates an environment and safeguards rights and interests to achieve multiple goals.

The development of 2. affected by the external environment and the epidemic is facing many difficulties, and the system design needs to be strengthened to further stabilize expectations and increase confidence. Due to the influence of multiple factors, the quality of life of individual industrial and commercial households is generally not high. According to the survey, 79.4 per cent of self-employed people earn less than $10000 a month and 57.9 per cent are at a loss. From January to August 2022, 13.591 million new individual industrial and commercial households were established nationwide, an increase of 6.0 percent year-on-year, lower than the average growth rate of 11.8 percent in the past 10 years, and the number of exits increased by 9.5 percent over the same period last year. Whether focusing on the current bailout or long-term development, we need to plan as a whole, strengthen the top-level design from the legislative level, further clarify the positioning, optimize the environment and stabilize expectations.

3. the original "Regulations on Individual Industrial and Commercial Households" took registration and management as the main content, the measures to support development were not obvious and did not meet the requirements of current economic and social development. The "Regulations on Individual Industrial and Commercial Households" originated from the 1987 "Interim Regulations on the Administration of Urban and Rural Individual Industrial and Commercial Households". It is the only special legislation for individual industrial and commercial households in my country's legal system. It was promulgated and implemented in 2011 and was revised twice in 2014 and 2016. From the perspective of content structure, there are 30 articles in the "Regulations", of which 17 are registration and supervision regulations, and the administrative management color is heavy. From the perspective of regulatory synergy, the Regulations on the Administration of Registration of Market Entities promulgated in 2021 have fully integrated the original specific registration rules, standards, procedures and other provisions of the Regulations, and have also absorbed and adjusted the relevant supervision and management and legal liability provisions to form a unified registration system for market entities. Therefore, it is not appropriate to retain the specific provisions on registration supervision as a whole. From the perspective of the scope of adjustment, the "Regulations" still have gaps in the subject status, supervision methods, and rights protection of individual industrial and commercial households, especially "new individual industrial and commercial households. Therefore, it is necessary to base on the new stage of development, adapt to the new development situation, and adjust and improve it in a targeted manner.

General Secretary Xi Jinping stressed that the rule of law is the best business environment. Optimizing the development environment and promoting the sustainable and healthy development of individual industrial and commercial households requires a more complete administrative regulation. This is not only the objective need of economic and social development, but also the ardent expectation of the majority of individual workers. Since 2019, the General Administration of Market Supervision has revised and demonstrated the legislative ideas, basic framework and main provisions of the original Regulations on Individual Industrial and Commercial Households. Since the beginning of this year, we have carried out special research in six areas, set up 49 grass-roots contact points across the country, organized a "questionnaire survey of millions of individual industrial and commercial households" and follow-up research, and collected more than 30000 opinions and suggestions of various kinds, making full preparations for the formulation of new regulations. In the process of drafting, we fully listened to the opinions of relevant departments, experts and scholars, grass-roots units, self-employed workers' associations, especially representatives of individual industrial and commercial households. All parties believe that the promulgation of the Regulations is at the right time, effectively responding to the concerns of individual industrial and commercial households, helping to enhance the sense of policy acquisition of individual industrial and commercial households, and can release a strong signal to encourage, support, and guide the development of individual industrial and commercial households. Effectively boost market confidence.

The "Regulations" have been revised and improved many times, and were reviewed and approved by the executive meeting of the State Council on September 26, and promulgated on October 1, 2022.

Article 1 These Regulations are formulated in order to encourage, support and guide the healthy development of the individual economy, safeguard the legitimate rights and interests of individual industrial and commercial households, stabilize and expand employment in urban and rural areas, and give full play to the important role of individual industrial and commercial households in national economic and social development.

[interpretation] this article stipulates the legislative purpose of the regulations. Compared with the original regulations on individual industrial and commercial households, this article highlights the expression of "encouraging, supporting and guiding the healthy development of individual economy", and emphasizes "strengthening the supervision and management of individual industrial and commercial households", reflecting the requirements of combining release and management with equal emphasis.

Article 2 These Regulations shall apply to citizens with business capabilities who engage in industrial and commercial operations within the territory of the People's Republic of China and are registered as individual industrial and commercial households in accordance with the law.

[Interpretation] The original "Regulations" defined individual industrial and commercial households, that is, "citizens who have the ability to operate and are registered by the administrative department for industry and commerce in accordance with the provisions of these regulations and are engaged in industrial and commercial operations are individual industrial and commercial households". In view of the fact that Article 54 of the Civil Code has absorbed this expression and clarified the definition of individual industrial and commercial households, this article will not repeat it, but only clarified that the scope of application of the Regulations is individual industrial and commercial households registered in accordance with the law.

Article 3 The work of promoting the development of individual industrial and commercial households shall adhere to the leadership of the Communist Party of China, and give play to the leading role of party organizations in the development of individual industrial and commercial households and the vanguard and exemplary role of party members. Party organizations and party members in individual industrial and commercial households carry out party activities in accordance with the provisions of the Constitution of the Communist Party of China.

[Interpretation] Incorporating adherence to the leadership of the party into laws and regulations to promote the development of individual industrial and commercial households is a highlight of the new "Regulations. This has two meanings: one is to adhere to the overall leadership of the party in promoting the development of individual industrial and commercial households, grasp the correct political direction, and embody the strong determination of "two unshakable"; the second is to give full play to the leading role of party organizations and the vanguard and exemplary role of party members in individual industrial and commercial households, strengthen party building, and promote development through party building.

Article 4 The individual economy is an important part of the socialist market economy, and individual industrial and commercial households are important market entities, playing an important role in prospering the economy, increasing employment, promoting entrepreneurship and innovation, and facilitating the lives of the people. The state continues to deepen the reform of streamlining administration and delegating powers, combining decentralization and management, optimizing service reforms, optimizing the business environment, actively supporting, strengthening guidance, and standardizing in accordance with the law, so as to create favorable conditions for the healthy development of individual industrial and commercial households.

[Interpretation] This article is not only the positioning of individual industrial and commercial households, but also the clarification of the theme of the "Regulations" to promote the development of individual industrial and commercial households. The first paragraph makes it clear that "the individual economy is an important part of the socialist market economy" and embodies the spirit of Article 11 of the the People's Republic of China Constitution that "the individual economy, the private economy and other non-public economies within the scope prescribed by law are an important part of the socialist market economy. At the same time, it highly summarizes the important role of individual industrial and commercial households, that is, "prospering the economy, increasing employment, promoting entrepreneurship and innovation, and facilitating the lives of the people", which provides a basis for promoting the development of individual industrial and commercial households. The second paragraph emphasizes the deepening of the reform of "decentralization, management and service" and the implementation of the principle of "active support, strengthening guidance, and legal regulation" for the development of individual industrial and commercial households.

Article 5 The State applies the principle of equal market access and fair treatment to individual industrial and commercial households.

[Interpretation] This article follows the provisions of the first paragraph of Article 4 of the original "Regulations on Individual Industrial and Commercial Households", highlighting "equal access and fair treatment", and embodies the state's major policy of encouraging, supporting and guiding the development of the individual and private economy.

Article 6 Individual industrial and commercial households may operate by themselves or by families. The property rights, business autonomy and other legitimate rights and interests of individual industrial and commercial households are protected by law, and no unit or individual may infringe or illegally interfere.

[Interpretation] The provisions of the second paragraph of Article 2 of the original "Regulations on Individual Industrial and Commercial Households" that "individual industrial and commercial households can be operated by individuals or by families" are retained and moved to this article, mainly considering the relevant provisions of the Civil Code Convergence. This article is more specific about the protection of the rights and interests of individual industrial and commercial households, emphasizing the legitimate rights and interests such as "property rights and operational autonomy.

Article 7 The State Council shall establish an inter-ministerial joint conference system for promoting the development of individual industrial and commercial households, study and promote the implementation of major policies and measures to promote the development of individual industrial and commercial households, and coordinate major issues in the work of promoting the development of individual industrial and commercial households. The market supervision and management department of the State Council shall, in conjunction with relevant departments, strengthen the macro guidance, comprehensive coordination, supervision and inspection of the work of promoting the development of individual industrial and commercial households.

Article 8 the relevant departments of the State Council, such as development and reform, finance, human resources and social security, housing and urban-rural construction, commerce, finance, taxation, market supervision and management, shall study and formulate policies and measures on tax and fee support, entrepreneurship support, vocational skills training, social security, financial services, registration, rights and interests protection, and do a good job in promoting the development of individual industrial and commercial households.

Article 9 the local people's governments at or above the county level shall incorporate the promotion of the development of individual industrial and commercial households into the national economic and social development plans at the corresponding level, formulate specific measures and organize their implementation in the light of the development of individual industrial and commercial households in their respective administrative regions, so as to provide support for the development of individual industrial and commercial households.

[Interpretation] Division of responsibilities (Articles 7 to 9). The "Regulations" use three articles to clarify the responsibilities of the State Council, relevant departments, and local people's governments at or above the county level in promoting the development of individual industrial and commercial households, and strengthen the responsibilities of various localities. In August 2021, with the approval of the State Council, an inter-ministerial joint conference system to support the development of individual industrial and commercial households, led by the General Administration of Market Supervision and attended by 11 departments, was established to coordinate and promote the development of individual industrial and commercial households. The "Regulations" raised this system to the level of regulations and clarified the responsibilities and tasks of the General Administration of Market Supervision as the lead department. The "Regulations" stipulate that all relevant departments of the State Council shall study and formulate policies and measures to promote the development of individual industrial and commercial households within their respective responsibilities.

The "Regulations" also proposed for the first time that "local people's governments at or above the county level should incorporate the promotion of the development of individual industrial and commercial households into the national economic and social development plans at the same level." The relationship between regional economic and social development has a driving effect.

Article 10 The State shall strengthen the monitoring and analysis of the development status of individual industrial and commercial households, regularly carry out sampling surveys, monitoring statistics and activity analysis, and strengthen the collection, sharing and application of information on the development of individual industrial and commercial households.

[Interpretation] Individual industrial and commercial households have a large number and a wide range of interests. A comprehensive grasp and accurate judgment of their situation is the prerequisite for formulating various policies and measures to promote development. The "Regulations" stipulate that through regular sampling surveys, monitoring statistics, and activity analysis, the monitoring and analysis of the development status of individual industrial and commercial households should be strengthened, and the collection, sharing and use of information should be strengthened to provide a basis for promoting the development of individual industrial and commercial households.

Article 11 The registration authority of market entities shall provide individual industrial and commercial households with registration services that are compliant with laws and regulations, standardized and unified, open and transparent, convenient and efficient.

Article 12 The market supervision and management department of the State Council shall, in accordance with the development characteristics of individual industrial and commercial households, reform and improve the annual report system for individual industrial and commercial households, simplify the content, optimize the process, and provide simple and convenient annual report services.

Article 13 Individual industrial and commercial households may voluntarily change business operators or transform into enterprises. If a business operator is changed, it may directly apply to the market entity registration authority for registration of the change. Where relevant administrative licensing is involved, the administrative licensing department shall simplify the procedures and provide convenience for individual industrial and commercial households in accordance with the law. If an individual industrial and commercial household changes its business operator or transforms into an enterprise, it shall settle the taxes payable in accordance with the law, properly handle the original claims and debts, and shall not harm the legitimate rights and interests of others.

[Interpretation] Registration and Annual Report (Articles 11 to 13). This is a "universal" service measure for each individual industrial and commercial household. The regulations make requirements for the registration organs of market entities to provide compliance with laws and regulations, standardization and unity, openness and transparency, convenience and efficiency. In view of the complex contents of the annual reports reflected by some individual industrial and commercial households and the heavy burden on the grass-roots units, it is stipulated to reform and improve the annual report system of individual industrial and commercial households. In order to solve the current complicated procedures for "individual transfer of enterprises" and individual industrial and commercial households to change operators, the "Regulations" stipulate that change operators can directly apply to the registration authority for change registration, and there is no need to "cancel first and then establish"; For the administrative licensing issues involved in the "individual transfer of enterprises", the administrative licensing department is required to simplify procedures and provide convenience.

According to the Civil Code, individual industrial and commercial households are the form in which natural persons engage in business activities, and "operators" are individuals engaged in business activities by individual industrial and commercial households, who bear unlimited liability for the debts of individual industrial and commercial households with all their property, and the name and goodwill of individual industrial and commercial households are also closely related to operators. Due to the special nature of individual industrial and commercial households, there have been strict restrictions on the change of operators for a long time. Individual industrial and commercial households who change their operators, that is, the so-called "exchange" shops and transfer their management rights, except for changes between family members, they must follow the original "Individual Industrial and Commercial Households Regulations" and relevant registration management regulations., Re-apply for registration, that is, cancel the original individual industrial and commercial households and apply for the establishment of new individual industrial and commercial households.

In the process of formulating the Regulations on Promoting the Development of Individual Industrial and Commercial Households, many individual industrial and commercial households reported that the shops they have operated for many years have unique brand names and good goodwill, and have obtained relevant administrative licenses because the original operators cannot continue to operate and hope Transfer to others. However, once written off, these intangible assets will be lost, and re-going through various procedures will increase a lot of costs, which is not conducive to the continuous operation of individual industrial and commercial households and the creation of "century-old stores".

In order to solve this problem, the "Regulations" adjusted the way individual industrial and commercial households change their operators, from the original "cancellation first, then establishment" to "directly apply to the market entity registration authority for change registration". This provision facilitates the transfer of the management rights of individual industrial and commercial households, realizes the continuation of the establishment time, name and related administrative licenses of individual industrial and commercial households, greatly simplifies procedures and reduces institutional transaction costs. The General Administration of Market Supervision will, in accordance with the provisions of the regulations, promptly adjust the norms of documents and materials for individual industrial and commercial households to change operators, and guide local market entity registration authorities to do a good job in registration services.

The transformation of individual industrial and commercial households into the form of enterprise organization, which is commonly referred to as "individual to enterprise", is an effective way for individual industrial and commercial households to expand their business scale, improve their internal governance structure, and upgrade their business formats. As there are still great differences between individual industrial and commercial households and enterprises in terms of legal nature, organizational form, mode of responsibility, name management, etc., it is still necessary to go through the cancellation registration of the original individual industrial and commercial households in accordance with the current regulations, and then apply for enterprise establishment registration.

Whether it is an individual industrial and commercial household changing business operators or "individual enterprises", involving relevant administrative licensing, the "Regulations" require relevant administrative licensing departments to simplify procedures and provide convenience for individual industrial and commercial households in accordance with the law. At the same time, it is particularly emphasized that on a "voluntary" basis, no mandatory requirements shall be imposed on individual industrial and commercial households.

In order to maintain the safety of transactions and protect the interests of consumers and third parties, the Regulations also put forward clear requirements for individual industrial and commercial households to change business operators or transform into enterprises, that is, individual industrial and commercial households should settle their business operators in accordance with the law. The taxes paid, etc., properly handle the original claims and debts, and shall not harm the legitimate rights and interests of others ". For example, as long as the prepaid card coupons sold by individual industrial and commercial households in the course of operation are within the agreed validity period, whether the store is "redeemed" to others or transformed into an enterprise, proper arrangements should be made for the card coupons, and follow-up The operator made a clear agreement to prohibit "new stores ignoring old accounts".

Article 14 The State shall strengthen the construction of a public service platform system for individual industrial and commercial households, and provide individual industrial and commercial households with information services such as laws and policies, market supply and demand, recruitment and employment, entrepreneurship training, and financial support.

[interpretation] "poor information" is a prominent problem reflected by individual industrial and commercial households, which includes not only the lack of understanding of various government support policies, but also the lag in mastering market information. The "Regulations" stipulate that the state strengthens the construction of a public service platform system for individual industrial and commercial households. This service platform system is not a specific website, nor is it limited to a platform for government construction and operation. Instead, it uses government guidance, market leadership, and social sharing models to integrate and optimize various social resources, strengthen the role of demonstration and leadership, and form a coverage of various segments. In the industry sector, provide information services such as legal policies, market supply and demand, recruitment and employment, entrepreneurship training, and financial support that are close to the needs of individual industrial and commercial households.

Article 15 under the guidance of the market supervision and management department, the self-employed workers' association established according to law shall give full play to its role as a bridge and link, promote the party building of individual industrial and commercial households, provide services for individual industrial and commercial households, safeguard the legitimate rights and interests of individual industrial and commercial households, and guide the integrity and self-discipline of individual industrial and commercial households. Individual industrial and commercial households voluntarily join individual workers' associations.

[Interpretation] The Self-employed Workers Association is a non-profit social organization voluntarily formed by individual industrial and commercial households, sole proprietorship enterprises, partnerships and other organizations and individuals in accordance with the law. Under the guidance of market supervision departments, it will give full play to its role as a bridge and promote individual industrial and commercial households. Party building provides services for individual industrial and commercial households, safeguards the legitimate rights and interests of individual industrial and commercial households, and guides individual industrial and commercial households to be honest and self-discipline. The "Regulations" stipulate the legal status and main tasks of self-employed workers' associations.

Article 16 when formulating relevant policies and measures, the government and its relevant departments shall fully listen to the opinions of individual industrial and commercial households and relevant industry organizations, and shall not formulate or implement discriminatory policies and measures against individual industrial and commercial households in terms of qualification licensing, project declaration, government procurement, bidding and bidding, etc. in violation of the provisions.

[interpretation] individual industrial and commercial households are small in scale and have limited voice, so they are vulnerable to discrimination from all aspects in their business activities. From the perspective of formulating policies and measures, the regulations put forward the requirement of prohibiting discrimination against individual industrial and commercial households. It emphasizes that the government and its relevant departments should fully listen to the opinions of individual industrial and commercial households and relevant industry organizations when formulating relevant policies and measures, and shall not violate the regulations, Formulate or implement discriminatory policies and measures against individual industrial and commercial households in terms of license, project declaration, government procurement, bidding and bidding, etc.

Article 17 the local people's governments at or above the county level shall, in the light of the actual situation of their respective administrative regions and in accordance with the industry type, business scale and business characteristics of individual industrial and commercial households, carry out classified cultivation and accurate assistance to individual industrial and commercial households.

[Interpretation] Individual industrial and commercial households have a large number and a wide range of complex situations. There are both "small merchants" who support their families and "large individuals" of considerable scale ". We should take differentiated measures according to its development level and development characteristics, and increase the "top-notch" support and training of individual industrial and commercial households such as persistent persistence, distinctive characteristics, new industries and new formats. For example, individual industrial and commercial households can be divided into "survival type", "growth type" and "development type" according to the business scale and revenue level, and targeted cultivation based on "survival", "sustainable operation" and "development and growth" respectively. For another example, starting from the local reality, we can encourage the innovative development of four types of "famous, special, excellent and new" individual industrial and commercial households, so as to improve the overall level of the development of individual industrial and commercial households in the region.

Article 18 Local people's governments at or above the county level shall take effective measures to increase the supply of business premises for individual industrial and commercial households and reduce the cost of using business premises.

[Interpretation] Business premises are a prerequisite for the survival and development of individual industrial and commercial households, and they are also the main part of their operating costs. In view of the problems reflected by a large number of individual industrial and commercial households operating by entities, such as difficult to find business premises and high rent, the regulations stipulate that local people's governments at or above the county level should take effective measures to increase the supply of business premises for individual industrial and commercial households. at the same time, reduce the cost of use.

Article 19 The State encourages and guides venture capital institutions and social funds to support the development of individual industrial and commercial households.

Local people's governments at or above the county level shall give full play to the role of various funds to provide financial support for individual industrial and commercial households in entrepreneurship and innovation, loan financing, vocational skills training, etc.

Article 20 The State implements fiscal and taxation policies that are conducive to the development of individual industrial and commercial households. Local people's governments at or above the county level and their relevant departments shall strictly implement relevant fiscal and tax support policies to ensure accurate and timely benefit to individual industrial and commercial households.

Article 21 The State shall promote the establishment and improvement of a credit evaluation system for individual industrial and commercial households, encourage financial institutions to develop and provide financial products and services suitable for the development characteristics of individual industrial and commercial households, expand the scale and coverage of loans for individual industrial and commercial households, and improve the accuracy and convenience of loans.

[Interpretation] Fiscal and financial support (Articles 19 to 21). Capital is particularly important for individual businesses. To promote the development of individual industrial and commercial households, it is necessary to give full play to the role of various funds, strictly implement relevant fiscal and tax support policies, continuously expand the scale and coverage of loans, and take multiple measures to solve funding problems. The "Regulations" make arrangements for this in terms of funds, finance and taxation, and loans.

Article 22 Local people's governments at or above the county level shall support individual industrial and commercial households to participate in social insurance, and provide corresponding support to eligible individual industrial and commercial households.

Article 23 local people's governments at or above the county level shall improve policies to support entrepreneurship, support individual industrial and commercial households to participate in vocational skills training, and encourage all kinds of public employment service agencies to provide recruitment and employment services for individual industrial and commercial households.

[Interpretation] Social Security and Employment Policies (Articles 22 and 23). The regulations stipulate that local people's governments at or above the county level shall support individual industrial and commercial households to participate in all kinds of social insurance and vocational skills training, give full play to the role of all kinds of public employment service institutions, and provide recruitment and employment services for individual industrial and commercial households. for individual industrial and commercial households and their employees to provide protection for entrepreneurship and employment.

Article 24 Local people's governments at or above the county level shall, in conjunction with the construction of urban and rural community service systems, support individual industrial and commercial households in engaging in business activities closely related to the daily life of residents in the community to meet the daily consumption needs of residents.

Article 25 The State shall guide and support individual industrial and commercial households to accelerate digital development and realize integrated online and offline operations. Platform operators shall provide support for the online operation of individual industrial and commercial households in terms of entry conditions, service rules, charging standards, etc., and shall not use service agreements, platform rules, data algorithms, technology and other means to impose unreasonable restrictions on individual industrial and commercial households on the platform, attach unreasonable conditions or charge unreasonable fees.

[Interpretation] Online and offline integrated operation (Articles 24 and 25). Individual industrial and commercial households are mainly concentrated in wholesale and retail, catering and resident service industries. According to the survey, 70.3 percent of individual industrial and commercial households are only engaged in offline operations. Physical stores are very important to serve the daily lives of urban and rural residents, and expanding online operations is also an effective way to support the development of individual businesses. The Regulations provide for both offline and online. The first is to support individual industrial and commercial households to engage in business activities closely related to the daily life of residents in the community to meet the consumption needs of residents; the second is to guide and support individual industrial and commercial households to accelerate digital development and improve online business capabilities. At the same time, the "Regulations" responded to the various problems encountered by individual industrial and commercial households in the operation of the network platform, and specifically stipulated the obligations of platform operators.

Article 26 The State shall strengthen the protection of the names, trademarks, patents, trade secrets and other rights of individual industrial and commercial households.

The state encourages and supports individual industrial and commercial households to improve the level of creation and application of intellectual property rights and enhance market competitiveness.

[Interpretation] Because of their small scale and limited scope of influence, individual industrial and commercial households often do not pay attention to the protection and use of rights such as brand names, trademarks, patents, and trade secrets, which restricts their development to a certain extent. The "Regulations" encourage and support individual industrial and commercial households to improve the level of creation and application of intellectual property rights and enhance market competitiveness. At the same time, it stipulates that the state should increase the protection of the relevant rights of individual industrial and commercial households and improve the development quality of individual industrial and commercial households.

Article 27 when formulating and implementing urban and rural construction planning, urban and traffic management, city appearance and environmental governance, industrial upgrading and other relevant policies and measures, local people's governments at or above the county level shall fully consider the business needs and practical difficulties of individual industrial and commercial households, and implement guidance and assistance.

[Interpretation] In the process of formulating the "Regulations", individual industrial and commercial households have reported that in some places, in the process of urban and rural construction planning, urban and traffic management, city appearance and environmental governance, industrial upgrading, etc., there is a "one size fits all" shutdown or affect the normal operation of individual industrial and commercial households. The situation. In this regard, the Regulations specifically stipulate that in formulating and implementing relevant policies and measures, local people's governments at or above the county level must fully consider the business needs and actual difficulties of individual industrial and commercial households, strengthen guidance, properly handle, and make overall plans to create stability for individual industrial and commercial households. Expectations of the environment.

Article 28 the people's governments at all levels shall, in the light of the actual situation, take timely relief and assistance measures for individual industrial and commercial households that have business difficulties due to natural disasters, accidents and disasters, public health incidents, social security incidents and other reasons.

[Interpretation] Individual industrial and commercial households engage in business activities as individuals or families, and their ability to resist risks is weak. They are often the most impacted in major disasters. Giving them assistance is the basic responsibility of governments at all levels to protect people's livelihood. The "Regulations" stipulate that for individual industrial and commercial households that have business difficulties due to natural disasters, accidents, public health incidents, social security incidents, etc., the government should take timely relief and assistance measures based on actual conditions.

Article 29 the government and its relevant departments shall, in accordance with the relevant provisions of the state, commend and reward the advanced models of individual industrial and commercial households, and constantly enhance the sense of honor of the operators of individual industrial and commercial households.

[Interpretation] Since the reform and opening up, a large number of advanced models of love and dedication, perseverance, integrity management, and return to society have emerged in the group of individual industrial and commercial households. The "Regulations" stipulate that the government and its relevant departments shall commend and reward advanced models of individual industrial and commercial households in accordance with relevant national regulations. This is conducive to enhancing the sense of honor and belonging of self-employed operators, and setting an example for the majority of individual industrial and commercial households.

Article 30 No unit or individual may, in violation of laws and regulations and the relevant provisions of the State, collect fees or collect fees in disguised form from individual industrial and commercial households, expand the scope of fees or raise the standards of fees without authorization, raise funds or apportion funds from individual industrial and commercial households, or forcibly require individual industrial and commercial households to provide sponsorship or accept paid services. No unit or individual may induce or force workers to register as individual industrial and commercial households.

[Interpretation] This provision has been reflected in the original "Regulations on Individual Industrial and Commercial Households". The new regulations have been expanded to cover various forms of charging and apportioning individual industrial and commercial households in violation of regulations, and the main body has also changed from "any department and unit". "Expand to" any unit and individual ". In view of the phenomenon that workers are required to register as individual industrial and commercial households in individual fields in order to evade the responsibility of employers, the regulations specifically stipulate that no unit or individual may induce or force workers to register as individual industrial and commercial households, so as to effectively protect the legitimate rights and interests of workers.

Article 31 Organs, enterprises and institutions shall not require individual industrial and commercial households to accept unreasonable payment terms, methods, conditions and liability for breach of contract and other trading conditions, shall not default on the accounts of individual industrial and commercial households, and shall not disguise the arrears of accounts by forcing individual industrial and commercial bills of exchange and other non-cash payment methods.

[Interpretation] Large enterprises take advantage of their dominant position to default on the accounts of small and medium-sized enterprises, which is a key issue for the government in recent years. To this end, in 2020, the State Council specially formulated and promulgated the Regulations on Guaranteeing Payment of Funds for Small and Medium-sized Enterprises. For individual industrial and commercial households, arrears of accounts also occur from time to time, and individual industrial and commercial households are more vulnerable than small and medium-sized enterprises, so we should strengthen the protection from the legal level. The regulations clearly stipulate that government organs, enterprises and institutions shall not impose unreasonable trading conditions on individual industrial and commercial households, and shall not default or default in disguised form on the accounts of individual industrial and commercial households. Through this provision, the prohibition of defaulting on accounts owed to individual industrial and commercial households is made clear as a legal obligation.

Article 32 Local people's governments at or above the county level shall improve the development quality of individual industrial and commercial households, and shall not use the growth rate of the number of individual industrial and commercial households and the annual reporting rate as performance evaluation indicators.

[Interpretation] Individual industrial and commercial households are the embodiment of individual business intentions. The increase in the number of individual industrial and commercial households should be the result of continuous optimization of the business environment. Government departments should not "pull out the seedlings and encourage growth" and unrealistically set the number of individual industrial and commercial households. As a performance appraisal indicator. Similarly, the annual report is an effective way for individual industrial and commercial households to publicize business information and improve their credit level in accordance with the law, and should reflect the real situation of the survival of individual industrial and commercial households. In view of the one-sided pursuit of "numbers" of individual industrial and commercial households in individual places, the regulations specifically emphasize that local people's governments at or above the county level should improve the development quality of individual industrial and commercial households. the growth rate of the number of individual industrial and commercial households and the annual reporting rate shall not be used as performance evaluation indicators.

Article 33 Individual industrial and commercial households shall have the right to complain and report to the relevant departments for acts that violate the provisions of these regulations and infringe upon their legitimate rights and interests.

Local people's governments at or above the county level and their relevant departments shall unblock channels for complaints and reports, and handle them in a timely manner in accordance with the law.

[interpretation] this article stipulates that individual industrial and commercial households have the right to complain and report acts that infringe upon their legitimate rights and interests. Local people's governments at or above the county level and their relevant departments shall unblock channels for complaints and reports, and handle them in a timely manner in accordance with the law. The smooth flow of complaint reporting channels is very important to protect the legitimate rights and interests of individual industrial and commercial households.

Article 34 Individual industrial and commercial households shall operate in accordance with the law, be honest and trustworthy, and consciously perform their legal obligations in labor employment, safe production, food safety, occupational health, environmental protection, and fair competition. For key areas involving public security and people's lives and health, the relevant administrative departments should strengthen supervision and management to maintain good market order.

[Interpretation] Law-abiding and honest operation is the obligation of individual industrial and commercial households, and it is also the basic guarantee for their stable operation and long-term development. The "Regulations" clearly stipulate that individual industrial and commercial households operate in accordance with the law, are honest and trustworthy, and consciously perform relevant legal obligations. At the same time, it emphasizes the strengthening of supervision and management and the maintenance of good market order in key areas such as food, drugs, special equipment and other key areas related to public safety and people's life and health. This fully embodies the legislative concept of the combination of the regulations, the development of services and the unification of supervision according to law.

Article 35 If an individual industrial and commercial household conducts business activities in violation of relevant laws and regulations, the relevant administrative department shall deal with it in accordance with the principle of combining education and punishment, and the principle of equal punishment.

[Interpretation] The combination of education and punishment and over-punishment are clear provisions of the "Administrative Punishment Law" and the basic principles of administrative law enforcement. It is even more important for individual businesses to adhere to this principle. The "Regulations" clarify that if individual industrial and commercial households carry out business activities in violation of relevant laws and regulations, the relevant administrative departments shall deal with them in accordance with the principle of combining education and punishment, and equal penalties.

Article 36 If the staff of the government and its relevant departments fail to perform or incorrectly perform their duties in promoting the development of individual industrial and commercial households, thus harming the legitimate rights and interests of individual industrial and commercial households and causing serious consequences, they shall be punished in accordance with the law; if a crime is constituted, Criminal responsibility shall be investigated according to law.

[interpretation] this article is a prohibitive provision against the inaction and disorderly acts of the staff of the government and its relevant departments, which damages the legitimate rights and interests of individual industrial and commercial households, and is also an important aspect of protecting the legitimate rights and interests of individual industrial and commercial households.

Article 37 Chinese citizens who are permanent residents of the Hong Kong Special Administrative Region and the Macao Special Administrative Region and residents of the Taiwan region may apply for registration as individual industrial and commercial households in accordance with the relevant provisions of the State.

Article 38 Provinces, autonomous regions and municipalities directly under the Central Government may, in the light of the actual conditions of their respective administrative regions, formulate specific measures for promoting the development of individual industrial and commercial households.

Article 39 These Regulations shall come into force on November 1, 2022. The Regulations on Individual Businesses shall be repealed at the same time.

[Interpretation] Promote the relationship between development and legal supervision

The "Regulations on Promoting the Development of Individual Industrial and Commercial Households" was drafted on the basis of the original "Regulations on Individual Industrial and Commercial Households" and combined with the overall situation, problems, difficulties and interest demands of the development of individual industrial and commercial households. In the process of formulating the "Regulations", the provisions of the original "Regulations" on the supervision and management of individual industrial and commercial households and penalties for violations of laws were partially deleted. In this regard, some people think that this will weaken the supervision and management of individual industrial and commercial households, resulting in "just letting go", and making the "Regulations" as the "subject law" of individual industrial and commercial households lack integrity. In fact, it is necessary to adhere to the promotion of development and supervision according to law for individual industrial and commercial households, which is fully reflected in the regulations.

1. strengthening supervision during and after the event is the proper meaning of the reform of "release, control and service".

The reform of "decentralization" includes three aspects: decentralization, combination of decentralization, and optimization of services. Supervision is the "safety valve" and "ballast stone" of access, and the ability and effectiveness of "tube" determine the degree and effect of "release. Strengthening supervision during and after the event to create a good environment for the survival of the fittest in the market is an important responsibility of all relevant departments, including market supervision departments. In fact, for various market entities, including individual industrial and commercial households, while relaxing access, government departments are strengthening supervision during and after the event through credit supervision, "double random, one open" supervision, and smart supervision. Effectively maintaining market order is also the protection and support for law-abiding operators.

The content of the 2.'s supervision of individual industrial and commercial households has been fully reflected in other laws and regulations.

The content of supervision and management in the original "Regulations on Individual Industrial and Commercial Households" has been absorbed and undertaken by the "Regulations on the Administration of Registration of Market Entities" implemented in March 2022, and there will be no legal vacuum. The Regulations on the Registration and Administration of Market Entities unify the registration and supervision of the current three types of market entities (enterprises, individual industrial and commercial households, and farmers' professional cooperatives) in my country, and fully integrate the original specific registration rules and standards of the Regulations on Individual Industrial and Commercial Households, Procedures and other regulations have also absorbed and adjusted relevant supervision and management and legal liability clauses, forming a unified market entity registration system. From the perspective of the synergy of administrative regulations, the "Regulations" should no longer retain the content of registration management. From the perspective of legislative experience, the "Small and Medium-sized Enterprise Promotion Law", which is also the "subject law", only sets up 4 items on supervision and inspection, and they are all provisions in principle, but they do not affect the legal supervision of small and medium-sized enterprises.

The 3. Regulations retain the principle provisions of supervision.

As one of the principles for promoting the development of individual industrial and commercial households, Article 4 of the regulations clearly stipulates that the state shall continue to deepen the reform of "release, management and service", optimize the business environment, actively support, strengthen guidance, and standardize according to law, so as to promote the healthy development of individual economy. Article 34 also stipulates that individual industrial and commercial households shall operate in accordance with the law, be honest and trustworthy, and consciously perform their legal obligations in labor and employment, safe production, food safety, etc., and clarify key areas involving public safety and people's lives and health., Government departments should strengthen supervision and management to maintain good market order. Article 35 makes it clear that if individual industrial and commercial households carry out business activities in violation of relevant laws and regulations, government departments shall deal with them in accordance with the law. These are provisions on strengthening supervision.

To sum up, the adjustment of the legislation on individual industrial and commercial households will not weaken the supervision of individual industrial and commercial households, but will make the legal system for the development of individual industrial and commercial households more perfect, which is conducive to better promoting the long-term and healthy development of individual industrial and commercial households and playing a greater role in the economy and society.