The Legalization Of The Unlicensed Vendors In Our Country And Its Governance

There are roughly two relationships between business registration and theacquisition of businessman qualification: first, business registration is thepremise of the acquisition of businessman qualification; Second, the formeronly functions as an acknowledgement or a record for the latter. Based on thesetwo relations, although the world business registration legislations vary,they may generally be divided into two groups, i.e."mandatory registration"and "nonmandatory registration". Under the first group, if one desires tobecome a businessman, business registration is necessary, meaning that thegovernment vests the person the qualification to engage into the businessoperation via its business registration. However, under the latter group, itis not mandatory for a person to conduct the business registration before itbecomes a businessman, and without registration, the government does not denyits business status, while only imposes some limits on it. Looking throughoutthe countries in the world, there are few countries adopt single mandatoryregistration or single nonmadatory registration, but combine these twotogether organically, then adopt different business registration mode for the different business operator. Compared to the foreign legislation, China adoptsthorough business registration legislation, namely the business registrationis compulsory for all the business operators. This paper holds that it is therigid mandatory registration legislation that makes vendors without businesslicense exist generally, and thus leads to a series of social contradictions.Based on three major purposes as publication of business registrationinformation, market management and convenience for taxation, and in light ofthe trade rights and property rights, from the aspect of jurisprudence, thispaper holds that our country should exempt vendors from business registration,and at the same time admit their legal businessman status. First of all,business of vendor is usually small, and mainly are for the daily life services,which will not cause serious social and economic problems, thus the governmentmay ease the market control on it; Second, considering most vendors’ incomeare not high, and accordingly the total tax revenues is very low, thus comparedwith the convenience of taxation, the cost of the forced busicess registrationis very high; Moreover, compared with the limited liability applied to thelegal person such as company, the vendors use all their personal property toundertake the consequences brought by their business operation, and evenwithout the constraints of the commercial law, trading activities still cancontinue under the general principles of civil law framework. If thegovernment, disregarding the present social economic development situation,forces all the vendors to conduct business registration before they engagein business activities, apparently, it not only infringes the property rightsand the trading rights of the vendors, but also brings no good for resolvingthe social contradictions and realizing justice as well as fairness.While this paper calling on the exemption of business registration forvendors, this paper also put forward the suggestion for resolving the traffic,pollution, commodity quality problems may cause by operation of vendors. Thispaper argues that, firstly the government should change the legislation idea. On the management of the vendors, the government agencies should corporatetogether and focuse on the service function of the government rather thanimpose all the management costs on the vendors, so as to provide good systemenvironment, financial support for the business activities of vendors. At thesame time, the government management, the community management and vendorsself management should be combined together, so that the power of the societycould be used to solve the problems brought by the legalization of theunlicensed vendors.