China will enable enterprises to have a "dormant" period for the first time in its new regulation on market entity registration, a senior official from the State Administration for Market Regulation (SAMR) told at a press conference on Wednesday. 

The new rule was set with the consideration of the enterprises that are temporarily unable to carry out normal business activities due to COVID-19, but still have a relatively strong willingness and ability to operate, said Yang Hongcan, head of the Business Registration Bureau of the SAMR. 

The measure is expected to reduce the maintenance cost of market entities and protect the legitimate rights and interests of market entities during business difficulties caused by disasters, accidents, public health incidents, and social security incidents, Yang said,. 

"Market entities may independently decide to close business within a certain period of time," he added. 

Chinese Premier Li Keqiang has signed a State Council decree unveiling the new regulation that was announced on August 24.

The new regulation, which will take effect on March 1 next year, has set out unified provisions on the registration and administration of enterprises of all types, self-employed individuals, and specialized farmers' cooperatives that engage in for-profit business activities in China.

The regulation will likely streamline market entities' registration processes, lower institutional costs and reduce their burden to provide legal safeguards for cultivating and strengthening market entities and promoting fair competition.

Registration authorities should optimize the process, raise their work efficiency and provide online registration services, the regulation stated.

Market entity registration applicants should be accountable for the authenticity, legality and validity of their submitted materials.

The authorities shall not require applicants to repeatedly provide relevant information that can be accessed via the government information-sharing platform, the regulation noted.

It has also called for strengthened oversight and management of the market entities. Those submitting false materials or concealing significant facts by fraudulent means will see their market entity statuses deregistered.

(With input from Xinhua)