China Regulatory Brief: Shanghai Maternity Leave Policy and Measures to Regulate Bookkeeping Agency

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China-Regulatory-Brief
Shanghai to Implement New Maternity Leave Policy Starting March 1

On February 23, the Shanghai local government approved and released the “Population and Family Planning Rules,” which will take effect on March 1, 2016. Once enacted, Shanghai’s maternity leave will be increased from the national baseline of 98 days to 128 days; whilst the paternity leave granted to the father will stand for 10 days. Moreover, all legally married couples in Shanghai will be entitled to an additional seven days marriage leave apart from the three-day national marriage holiday. Previously, the seven days’ holiday was given to newly wedded couples as a late-marriage incentive, which was later abolished by the revised national family planning regulations in January this year. Along with the release of the new regulations, China officially ended its one-child policy nationwide to further relax its population controls.

China Releases Measures to Regulate Bookkeeping Agency

On February 16, China’s Ministry of Finance released the “Administrative Measures on Bookkeeping Agency,” which will come into force on May 1. The Measures stipulate that a company needs to meet the following criteria to become a bookkeeping agency:

  • Is legally established;
  • Has at least three accountants possessing the Certificate of Accounting Profession;
  • The person in charge of the bookkeeping business is qualified as a professional certified accountant; and
  • Has well-regulated internal bookkeeping business policy in place.

Foreign representative offices or any companies who don’t have their own accounting departments are required to entrust bookkeeping to a professional accounting consultancy/bookkeeping agency.

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Foreigners Holding China’s Permanent Residence Permits Allowed to Enroll in Social Insurance Scheme

The State Council has recently promulgated a guideline to clarify several issues for foreigners to enroll in China’s social insurance scheme. According to the Guideline, foreigners holding China’s permanent residence permits, employed or not employed, may enroll in China’s social security system including pension and medical care schemes. Furthermore, foreign employees with a permanent residence permit should be exempted from obtaining a work permit in China. The document also clarified that the permanent residence permit would be regarded as the ID card for foreigners residing in China, and thus such foreigners should be treated equally when dealing with personal issues such as purchasing houses and applying for a driver’s license.

PBOC Clarifies Procedures to set up a Foreign Credit Inquiry Institution

On February 17, the People’s Bank of China (PBOC) and the Ministry of Commerce (MOFCOM) jointly released an announcement regarding the procedure for setting up a foreign-invested credit inquiry institution. According to the announcement, the applicants need to obtain a pre-approval with the PBOC prior to applying to the MOFCOM for a setup permit. After obtaining the approvals, the applicant may complete the registration process with the local Administration for Industry and Commerce (AIC). Foreign-invested credit inquiry institutions are subject to the supervision of the local branch of PBOC in most regions of China; whilst loosened regulations on the establishment and operation of foreign credit inquiry companies apply in the country’s four free trade zones.


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