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Ease of Doing Business in

China

China Download Profile (2200.4KB, pdf)
Region East Asia & Pacific
Income Category Upper middle income
Population 1,371,220,000
GNI Per Capita (US$) 7,820
City covered Shanghai, Beijing

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 78 80 up
2
64.28 62.86 down
1.42
Starting a Business 127 134 up
7
81.02 77.46 up
3.56
Dealing with Construction Permits 177 175 down
2
48.52 48.29 up
0.23
Getting Electricity 97 92 down
5
68.73 68.66 up
0.07
Registering Property 42 42
-
76.15 76.15
-
Getting Credit 62 78 up
16
60.00 50.00 up
10.00
Protecting Minority Investors 123 118 down
5
45.00 45.00
-
Paying Taxes 131 127 down
4
60.46 60.50 down
0.04
Trading across Borders 96 94 down
2
69.13 69.13
-
Enforcing Contracts 5 4 down
1
77.98 77.98
-
Resolving Insolvency 53 53
-
55.82 55.43 up
0.39

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

46.38

DB 2016 DTF (% points):

46.15

Change in DTF (% points):

up0.23

STANDARDIZED WAREHOUSE
Estimated value of warehouse CNY 2,453,862
City Shanghai
Indicator Shanghai East Asia & Pacific OECD high income
Procedures (number) info_outline 22 15.0 12.1
Time (days) info_outline 274 134.1 152.1
Cost (% of warehouse value) info_outline 7 2.1 1.6
Building quality control index (0-15) info_outline 9 8.7 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain an environmental evaluation

    Agency: Bureau of Environmental Protection

    In the case considered here, BuildCo must submit an environmental impact assessment (环境影响报告表). Effective January 1, 2006, the approval of environmental evaluation form can be obtained at no cost in 30 days.

    The following documents are required for application:
    - Application form for environmental impact assessment
    - Business license
    - Filing opinion and statement of situation
    - Topographical map
    - Ichonographical map
    - Environmental impact assessment form
    - Opinions of related units, experts and the public, if the project may affect the environment greatly
    - The location opinion issued by the planning authorities
    - Request of planning and design
    - Opinion of industry administration department
    - Drainage license or drainage certificate; sewage treatment certificate if others are appointed to transport sewage

    30 days no charge
    2

    Request and obtain land use and various planning conditions approvals

    Agency: Shanghai Urban Construction and Communications Commission

    As of 2011, the Shanghai Urban Construction and Communications Commission obtains the approvals for the project proposal, project planning and design, notification on the review of the design plan, and two planning permits for using land on behalf of the applicant.

    The following documents are required to apply for these approvals:
    • Application form, planning and design project for construction
    • Topographical map(地形图
    • Ichnographic map(平面图
    • Scheme drawing (方案图)and instruction of design
    • Form, Area of layers (分层面积表)
    • Approval of the feasibility study report or other relevant approval
    • Approval of request of construction project planning and design (建设工程规划设计要求通知单)
    • Other relevant documents and drawings required in the notice of request for construction project planning and design

    20 days no charge
    3

    Request and obtain construction project planning permit

    Agency: Shanghai Bureau of Planning and Land and Resources

    Documents needed for construction on self-owned land include the following:
    - Application form
    - Construction project commitment letter
    - 1/500 or 1/1000 site-plan and 1/500 or 1/1000 (1/2000 for suburbs) terrain map
    - Working drawing
    - Form of strata area
    - Groundwork construction ichnographic map, groundwork detail drawing and piling plan drawing
    - Ichnographic sketch map used for public purposes
    - Construction budget plan
    - Preliminary design documents that are approved
    - Reply on planning design proposal and attached drawings
    - Opinion on review and filing of design documents and acceptance letter for drawing review

    35 days no charge
    4

    Obtain review of building drawings by a building drawing examiner authorized by the Shanghai Construction Project Document Review Center (Construction Committee) and obtain a letter of notice

    Agency: Shanghai Construction Project Document Review Center

    The building drawing review and fee collection occur simultaneously with the issuance of the construction project planning permit.

    As of 2012, the Shanghai District Construction Commission accepts the building drawings and coordinates the review among the various agencies, including the Fire Protection Bureau, the Shanghai Police and Traffic Police District Level Team and Shanghai City Appearance & Environmental Sanitation Administration Bureau.

    20 days no charge
    * 5

    Register construction drawings at the Civil Defense Office

    Agency: Civil Defense Office

    Commercial warehouses do not need approval by the Civil Defense Office. However, the builder still needs to present the design of the warehouse for registration and filing. This needs to be prepared by an authorized supervision agency.

    10 days no charge
    * 6

    Hire an authorized supervision agency

    Agency: Authorized Supervision Agency

    BuildCo must hire a supervision agency to supervise and ensure the quality and safety of the construction.

    There is no uniform price for hiring a supervisor. The cost should be calculated as follows:
    1. Designing step: if the budgetary estimate of the project design is less than CNY 5,000,000.00, the cost is calculated as 0.44 % (1,279,322 x 0.44%= CNY 5,629) of the budgetary estimate of the project design.
    2. Building and repairing step: if the budgetary estimate of the project building and repairing is less than CNY 5,000,000.00, the cost is calculated as 3.3% (1,279,322 x 3.3% = CNY 42,217.6) of the budgetary estimate. The new value is CNY 42,217.6 + CNY 5,629 = CNY 47,846.6. Additionally builders need to pay CNY 78,036.00 (CNY 60.00 per square meter) for designs to be presented to the People's Civil Defense office.

    These calculations are according to the Notice on the Standard of Industry-Directed Price for the Construction Supervision Agency Fees of Shanghai’ (Hu Jiang Jiang Xiezi [2001], No. 20, effective January 1, 2002).

    1 day CNY 169,810
    * 7

    Request and obtain evidence of capital from bank

    Agency: Commercial Bank

    1 day no charge
    * 8

    Register for direct contracting of design and construction

    Agency: District Tendering Office

    1 day CNY 1,428
    * 9

    Have the building contractor and supervisor seal the application form

    Agency: Building Contractor and Supervisor

    1 day no charge
    10

    Request and obtain building permit

    Agency: Shanghai Urban Construction and Communications Commission

    To request a building permit, BuildCo must file the following documents:
    - Application form for building construction permit
    - "IC Card of Shanghai Construction Project"
    - Land use permit for construction purpose or title certificates of land or property
    - Planning permit for the construction project
    - Evidence of payment to the general contractor through project specialized account
    - Construction contract with contractor
    - Bid winning notice for construction
    - Customer Receipt of the Openning Account for the salary of the workers of the general contractor
    - Certificate of quality and safety operation of Shanghai Construction Project
    - The statement form for the site of the construction project
    - Document evidencing that the site has completed building relocation (项目场地内完成动迁的证明材料)

    The office registers on BuildCo’s behalf for quality and safety monitoring and issues a notice. The statutory time limit for this procedure is 20 working days per the Regulation of Building Permits for Construction Project in Shanghai of July 1, 2015.

    21 days no charge
    11

    Request and receive fire department inspection upon building completion

    Agency: Fire Department

    The application can be submitted directly to the Shanghai District Construction Commission which now coordinates all inspections. But the inspections are still conducted by each individual agency.

    15 days no charge
    12

    Request and obtain certificate of the completed construction from the fire department

    Agency: Fire Department

    Pursuant to "Administration Rules on Supervision of Construction Project Fire Prevention" (effective from May 1, 2009)《建设工程消防监督管理规定》, BuildCo must request the certificate of the completed construction from the Fire Department within 7 days from the time of inspection. The documents required for submission are:
    - Application form for certificate of the completed construction
    - Voucher for filing documents of fire design (建设工程消防设计备案检查材料受理凭证) and certificate for examination of building map of construction project (建设工程施工图设计审查通过证书) ;
    - Inspection report for fire facility of construction (上海市建筑消防设施检测报告)
    - Notice on examination of sampling of decoration material (室内装修材料见证取样检验结果通知单)
    - Quality inspection report on fire-proof spraying of steel structure 钢结构防火喷涂工程施工质量检测报告
    - List of fire products
    - BuildCo's business license
    - License of construction, supervision and test companies

    15 days no charge
    13

    Receive inspection of the completed construction from the Shanghai Bureau of Planning and Land and Resources

    Agency: Shanghai Bureau of Planning and Land and Resources

    To request a final inspection, BuildCo must submit the following documents:
    - Report on completed construction (建设工程竣工测量成果报告书)
    - Planning permit for the construction project and attached drawings (plan, vertical view and cutaway view)
    - Qualified acceptance certificate of files of construction project (建设项目档案验收合格证)
    - Qualified acceptance form of civil defense project

    However, this application can be submitted directly to the Shanghai District Construction Commission which now coordinates all inspections. But the inspections are still conducted by each individual agency.

    10 days no charge
    * 14

    Receive "Four-Party" inspection

    Agency: Site Inspector, Designer, Builder, and Agency Supervisor

    This procedure is called a four-party inspection (四方验收). The four parties include the site inspector, the designer, the builder, and the supervisor.

    1 day no charge
    15

    Receive inspection of the completed construction from the Environmental Protection Department

    Agency: Environmental Protection Department

    To receive a final environmental inspection, BuildCo must submit these required documents:
    - Application for completed construction inspection
    - Environment inspection report
    - Business license or personal ID
    - Trial operation approval document (if applicable)
    - Approval of environmental impact assessment
    - Evidencing document for sewage treatment
    - Application form for dissembling, using and disposing electronic waste

    The time limit is 30 days from the receipt of application, according to the Environment Protection Bureau Web site. However, this application can be submitted directly to the Shanghai District Construction Commission which now coordinates all inspections. But the inspections are still conducted by each individual agency.

    30 days no charge
    * 16

    Request opinion on whether construction project is lightning-proof

    Agency: Shanghai Lightning Protection Center

    To obtain an opinion, BuildCo must submit the following documents:
    - Application form
    - Project approval
    - Examination opinion of design of lightning-proof facilities
    - Inspection report of lightning-proof project of construction project
    - As-constructed drawing of lightning-proof facilities
    - Testing report of lightning-proof products issued by qualified testing institution
    - Project contract with professional lightning-proof company

    14 days no charge
    * 17

    Request and receive inspection on construction completion (竣工备案) from the Shanghai Urban Construction and Communications Commission

    Agency: Shanghai Urban Construction and Communications Commission

    This procedure must be completed on the day of application, provided that the documents required for submission are complete. There is no charge for this procedure.

    1 day no charge
    18

    Request and obtain certificate of completion and certificate of final inspection from the Shanghai Urban Construction and Communications Commission

    Agency: Shanghai Urban Construction and Communications Commission

    Within 15 days after the building passes the inspection, BuildCo must file the following documents with the Shanghai Urban Construction and Communications Commission:
    - Inspection report of the completed construction
    - Acknowledgement or authority from the planning bureau
    - Acceptance certificate or opinion on acceptance of fire-prevention inspection
    - Acknowledgement from the environmental protection bureau
    - Acknowledgement from the city construction dossier department
    - Opinion on acceptance of lightning-proof construction project issued by Shanghai Lightning Protection Center
    - Proof of payment of engineering section
    - Opinion on acceptance of completed civil defense project

    21 days no charge
    19

    Obtain water connection inquiry and request water and sewage connection

    Agency: Municipal Water Bureau

    BuildCo must first apply for a water connection inquiry (接水前期征询手续) from the Municipal Water Bureau who will approve the application within 7 days after receiving all required documents. Afterwards, BuildCo may apply for the water connection.

    7 days no charge
    20

    Receive water and sewage inspection

    Agency: Municipal Water Bureau

    Upon receiving the water supply application, the water service crew conducts on-site surveys within 7 days. The completion of water supply is determined by construction conditions. As for sewage licensing, the Municipal Water Bureau needs 20 days after BuildCo submits the project approval and other documents on the sewage facility design to conduct a preliminary inspection. After completing the inspection and trial operation, the bureau requires 20 days to examine the results of the facility and grant approval. These timeframes are taken into account in the following procedure.

    1 day no charge
    21

    Receive connection to water and sewage services

    Agency: Municipal Water Bureau

    49 days no charge
    * 22

    Register building with Real Estate Registry

    Agency: Shanghai District Real Estate Registry

    The warehouse considered here should fall into the category of nonresidential real property, in which case the registry procedure will take 20 working days from receipt of the application. Pursuant to Notice on Relevant Issues on Calculating Methods and Fee Standards of the House Registration Fee (effective on Apr 25, 2008)《上海市物价局、上海市财政局关于规范本市房屋登记费计费方式和收费标准等有关问题的通知》, for nonresidential real property, the registration fee is CNY 550. Before selling the building, the property must be registered and the certificate obtained.

    30 days CNY 550

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 9.0
    Quality of building regulations index (0-2) 1.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Required preapprovals. 0.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by external engineer or firm; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 2.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance ; Construction company. 1.0
    Professional certifications index (0-4) 0.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Being a registered architect or engineer. 0.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; Passing a certification exam. 0.0