The Regulation on the Administration of Commercial Performances forbids performances that are "harmful to national unity and the integrity of sovereignty and territory", "against religious policies" or that spread "obscenity, pornography, evil cults, superstition and violence".
According to the Ministry of Culture, the standard to judge a performance will remain the same under the new policy.
Some people worried about bureaucracy and corruption if the approval process is not properly supervised.
To ensure the regulations are better carried out, the ministry will hold training for provincial cultural department personnel starting this week.
"Through the new policy we hope to become more service-oriented," said Li Rui, an official with the ministry.
"The new policy will help increase the mobility of performances as cultural commodities, and improve the general environment of performances in China."
According to a report by the ministry, the mainland's performance market reached nearly 60.3 billion yuan ($9.83 billion) in 2012, an increase of 60 percent over the previous year. The number of performances on the mainland last year exceeded 2 million.
Sun Mengjin, a music critic and concert organizer in Shanghai, said the new policy is a good sign and it shows the government is becoming more open.
"I hope international artists will encounter fewer hurdles before they can perform in China and the procedures will become more convenient," Sun said. "That will meet the need for China's rapid development in culture and society."
The new regulation is part of a campaign, initiated by the central government, to transform government functions.
Zhang Kun in Shanghai contributed to the story.
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