Government Institutes Major Relaxation of Business Registration

        The Ministry of Economic Affairs has drafted a revision of the Business Registration Law that will allow companies to operate their businesses with greater flexibility and nimbleness. In the future, companies will be allowed to operate not only the businesses for which they have permits, but also any other business that is not forbidden or restricted by law. The revision has been approved by the Executive Yuan, and was sent to the Legislative Yuan for deliberation on Oct. 3.

　　The revision deletes the original provision in the Business Registration Law that prohibits companies from operating outside the scope of their registered business, allowing them to engage in other businesses as well. At the same time, since the responsible person or partner of a business bears unlimited responsibilities for the business, the revision deletes the stipulation that the company’s capital must be audited and certified by a CPA; instead, this work will devolve upon the competent agency in the area where the business is located. This will reduce the cost of operation.

　　In addition, the revision moves to boost the development of the tourism industry by exempting home-stay facilities from the necessity of applying for business registration. Under the Statute for the Development of Tourism, home stays make use of empty rooms in the home of the proprietor to provide tourists with accommodation in a country setting where they can enjoy the local culture, natural scenery, ecology, environmental resources, and farming, forestry, and fishery activities. The operation of a home stay is considered a family sideline business that, because of its small scale, does not need to carry out business registration.

　　To facilitate administration, the revision also stipulates that when business operations violate the laws or regulations of the target industry, the competent authority of the industry can punish the offending business by ordering its closure. After the closure order is confirmed, the punishing agency should notify its own authority in charge to annul the violator’s business registration or some of the items on the registration. To keep companies that have not carried out business registration from affecting business order, the revision adds a provision requiring persons who engage in such behavior to carry out business registration before a set deadline. The agencies in charge will be required to make matters regarding business registration public, and to publish those matters on their information websites. For more information, please go online and visit this website: http://www.moea.gov.tw/~meco/doc/ndoc/941012.doc.

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