China has taken major steps to simplify and modernize its company registration process.
One of the most significant reforms is the introduction of the “5-in-1 Business License”, which consolidates several certificates into a single unified document.
For foreign investors, this reform means faster registration, better compliance oversight, and a more transparent business environment — essential advantages when entering the world’s second-largest economy.
What Is the “5-in-1” Business License?
The 5-in-1 Business License is part of an administrative reform launched by the State Administration for Market Regulation (SAMR) to streamline business registration and reduce bureaucracy.
Under this system, five separate certificates previously issued by different government agencies are combined into one single business license that carries an 18-digit Unified Social Credit Code (USCC) — a unique national identifier for each registered company in China.
Through the government’s online “One-Stop Service Platform”, investors can now complete all essential registrations at once, significantly cutting down processing time and paperwork.
What the 5-in-1 License Includes
Each 5-in-1 Business License covers the following five components:
- Business License – Authorizes the legal establishment of the company and defines its name, address, business scope, and registered capital.
- Tax Registration Certificate – Merges national and local tax registrations under one unified taxpayer identity.
- Organization Code Certificate – Serves as the company’s identification code for government and banking systems, now absorbed into the USCC.
- Social Security Registration Certificate – Enables employers to register and contribute to mandatory employee social insurance programs.
- Statistical Registration Certificate – Used for national data collection and economic reporting by the National Bureau of Statistics.
Key Benefits of the 5-in-1 License System
- Simplified Registration: One application, one approval, one license.
- Unified Corporate Identity: The 18-digit USCC functions as a “corporate ID number” recognized by all government agencies.
- Faster Processing: Registration can be completed in just a few working days in most cities.
- Improved Transparency: Company data is centrally recorded and shared across relevant authorities.
- Digital Management: Updates such as address or shareholder changes can be filed online via the National Enterprise Credit Information Publicity System (NECIPS).
Who Is Eligible for a 5-in-1 License?
The 5-in-1 Business License applies to all standard business entities in China, including:
- Wholly Foreign-Owned Enterprises (WFOE)
- Equity and Cooperative Joint Ventures (JV)
- Foreign-Invested Partnerships (FIP)
Note: Representative Offices are not full legal entities and follow a different registration process.
Additional Licensing Requirements
While the 5-in-1 Business License simplifies company establishment, it only covers basic registration.
Businesses in certain sectors — such as food & beverage, healthcare, education, import/export, and manufacturing — must still obtain industry-specific operational permits (e.g., health permit, environmental approval, or import/export license).
This is commonly referred to as the “business license first, operational permits later” model.
Conclusion
The introduction of the 5-in-1 Business License marks a major advancement in China’s efforts to create a more efficient and transparent business environment.
By integrating five critical registrations into one, the system reduces administrative burden, enhances compliance, and supports smoother foreign investment operations.
For both local and international businesses, it is a crucial first step in building a legally compliant and sustainable presence in China.
Partner with InvestinAsia
At InvestinAsia, we guide foreign investors through every stage of establishing and operating a company in China — from entity selection and registration to obtaining your 5-in-1 Business License and ensuring ongoing compliance.
Contact us today
Tel: (+66) 2 1188 999
Email: hello@investinasia.co.th
Website: https://investinasia.co.th
