From the perspective of the nature, function and applicable conditions of administrative licensing, it can be roughly divided into five categories: general license, franchise, recognition, approval and registration.
1. General license
A general license is an act that allows a counterparty that meets specific conditions to exercise certain rights. In many cases, activities requiring general licenses are closely related to national security, public safety, or industries with a high degree of social trust, such as market access and statutory business activities. In addition, the production and sales activities of products and items that directly involve personal health and the safety of life and property also require general licenses. For example, permits for demonstrations and permits for the production and sale of fireworks fall into this category.
General licenses have two distinguishing characteristics. First, certain conditions are attached while granting the counterparty the right to exercise legal rights. These conditions may include specific qualification requirements, technical standards or specific procedural requirements to ensure that the exercise of rights complies with statutory requirements and reduces potential risks. Second, general licenses usually do not implement quantity control. This means that the competent authority does not limit the number when issuing licenses, but focuses primarily on whether the entity granting the license complies with statutory conditions and standards.
2.Charter
Franchising is a management method in which administrative agencies grant specific rights to licensees on behalf of the state or effectively allocate limited resources. Franchise is mainly applicable to the development and utilization of limited natural resources, the allocation of limited public resources, and the market access of monopolistic enterprises that have a direct impact on public interests. For example, taxi operating license and pollutant emission permit.
Franchise has two main characteristics: first, after the counterparty obtains the franchise, it should generally pay a certain fee in accordance with the law, and the franchise obtained can be transferred and inherited; second, the franchise generally has a quantitative limit, and is often open and fair through public bidding, auction, etc. method to decide whether to grant a franchise.
3. Recognition
Recognition is the determination of whether the counterpart has certain qualifications and qualifications. It usually takes the form of issuing qualifications and qualification certificates to qualified personnel, such as the qualifications of accountants and doctors.
Recognition has four characteristics: first, it is mainly applicable to the identification of the qualifications and qualifications of natural persons, legal persons or other organizations that provide services to the public, are directly related to public interests, and have special credibility, special conditions or special skills; second, it is generally applicable to Approval will be determined through the examination method and based on the assessment results; third, qualifications are a permission for a person and are linked to the person's identity, but cannot be inherited or transferred; fourth, there is no limit on quantity.
4.Approval
Approval is the administrative agency’s judgment and confirmation of whether the applicant meets specific standards or specifications based on technical standards and economic and technical specifications. It is mainly used in the design, construction, installation and use of important equipment and facilities, as well as the inspection and quarantine of specific products and items that are directly related to personal health and the safety of life and property. For example, approval of elevator installations and inspection of cooking oils.
Approval has three distinctive features: first, the basis is mainly professional and technical; second, it is generally determined based on on-site acceptance and testing; third, there is no quantity limit.
5.Registration
Registration is an act by the administrative agency to confirm whether an individual or enterprise has specific civil rights and capacity for conduct. It is also a determination of its subject qualifications and specific identity. For example, the establishment, change and termination of legal persons or other organizations require registration. In addition, the registration of industrial and commercial enterprises and the registration of real estate ownership also fall within the scope of registration.
Registration has three salient features: first, legal relationships and rights matters that have not been legally registered are illegal and not protected by law; second, there is no quantitative limit; third, application registration materials are generally only subject to formal review, which can be done on the spot. Make a decision whether to grant registration.