Establishment and Maintenance of China Business register National Bureau of Statistics of China

1. Summary This article is mainly designed to brief the current situation of the difficulties and problem on the establishment and maintenance and updating, as well as the direction of further reform and tentative planning on China Business Register.

2.Establishment and Current Situation of China Business Register 2.1 Conception of basic units Legal unit refers to unit which is legally established, has its own name, corporate structure and working place, independently owns and uses (or authorizes other unit to use) its assets and bear its liabilities, has the right to sign contracts with other units, undertakes independent accounting and is able to compile balance sheet.

2.1 Conception of basic units Establishment refers to unit which is engaged exclusively, or mainly in one kind of social or economic activity, independently organizes productive or business activity and is able to keep abreast of the business data on its income and expenditure. An establishment is generally affiliated to a corporate unit.

China Business register is a basic data management system of basic marks, major properties, status. Its major indicators include: code of unit, name of unit, name of responsible person, address of unit, means of contact, category of industry, registration type, status of shares held by the State-owned, subjection relationship, corporate type, approval authorities of registration, time of opening business, operation status, the relationship between the legal unit and establishments, as well as employees, annual operational revenue, main business revenues and total assets.

2.2 Establishment, Maintenance and Updating of Business register The maintenance and updating of the existing Business register can be mainly classified into two types: The first type is overall updating by census on basic units and economic census; the second type is updating by annual survey and administrative reports.

2.2.1 Maintenance & Updating by Census on Basic Unit and Economic Census China had conducted two censuses on basic unit respectively in 1996 and 2001. According to the census, by the end of 1996, there are 4.402 million legal units and 6.351 million establishments in China. After the first national census on basic unit, a business register management system was established at national, provincial, municipal and partly county level. By making full use of the business register, the statistics agency at various levels provided valuable materials and extensive services for the local governments and social organization and individuals.

In 2001, China conducted the second national census on basic unit The census lasted for one and a half years. the results showed that by December 31st 2001, there were 5.107 million legal units and 7.088 million establishments in China. As a whole, the total volume of legal units and establishments increased by 14.8% and 11.6% respectively compared with the number in 1996. After the second census on basic unit, the statistics agency updated business register at national, provincial, municipal and county level totally and timely. the statistics agency at various levels provided valuable materials and extensive services for the local governments and social organization and individuals.

in 2005 China conducted the first national economic census in 2005 China conducted the first national economic census. The economic census coverage is all the legal units and establishments as well as individual business in China. In the first stage we conducted the unit enumeration according to the census area and district. By the enumeration statistics agency at various levels had updated and maintained the business register timely.

2.2.2 Maintenance and Updating in non- census Years The maintenance and updating of the business register in the non-census years mainly relied on the annual report of basic units and administrative records.

2.2.1.1 Annual Statistical Report of Basic Unit 2.2.1.2 Administrative Records 2.2.1.3 Major Practices in Maintenance and Updating of the Business register

(1) Maintenance and Updating of the national Business register The National Business register mainly relies on the annual statistical report of basic unit to update. The updating scope in 1997 covered the medium and large-sized enterprises in the fields of industry, construction, wholesale and retail, hotel and catering. The number of legal units updated amounted to be over 0.66 million. The updating scope since 1998 covered the enterprises beyond normal size on industry, construction, wholesale and retail, hotel and catering. The number of legal units updated amounted to 0.25-0.30 million units approximately.

(2) Maintenance and Updating of Business register In Provincial and Municipal levels The maintenance and updating of business register in provincial and municipal levels are mainly conducted through various channels and by various methods in accordance with the national uniform requirements and the local actual conditions.

① The statistics agencies conducted unit enumeration to update business register which is established in 1996. One third provinces conducted this method. ② Updating business register by the coordination between the local administrative records and annual statistics survey on basic units. Until now there are about 10 provinces adopted this method.

(3) The business register on individual business obtained by economic census is mostly established at county level. Some provincial statistics agencies are also established business register on individual business.

3. Challenges and problems in the Maintenance and Updating of Business register 3.1 The birth and death or change of units is smoothly Because China economic development is at a special period of high speed and more changes, there is about 20_30% change on unit birth and death. The business register is not updated timely in non census year. It is difficult to reflect real situation of units and meet the needs of economic management.

3.2 The Units Standard is not uniform Because in China the various units are registered and managed by various administrative agencies, the unit standard is not uniform. The various administrative agencies design the standard and classification according to their own management purpose. Such standard and classification is difficult to be coordination and link with the national statistics standard.

3.3 Relationship between Legal units and affiliated Establishments Because many legal units and affiliated establishments are often located different places, especially located different provinces, it is big challenge to investigate and easy to omit many establishments.

3.4 It is difficult on how to link with historical data The Basic Unit Statistical Survey System has a history of over 10 years and two censuses of basic units have been conducted since 1993. There is a lot of historical data in the business register. The meanings and conceptions of various types of indicators contained in the previous surveys and censuses were changed to some degree each time. The research on how to manage and develop historical data to reflect the growth and change is big challenge.

4. Future Plan on Business register 4.1 Overall objective 4.2 detail design and work 4.2.1. Uniform and Link on unit standards 4.2.2 Establish and perfect Data processing and network of the Business register 4.2.3. Establish and Perfect system on updating and maintenance of business register

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