Small businesses interested in establishing in China should pay attention to Li Keqiang's recent move to simplify the registration process for new companies in China, by eliminating some registered capital requirements.
China's reformist Premiere Li Keiqang.
The State Council, China's cabinet, approved the rules last month which effectively eliminates the 30,00 yuan requirement for establishing limited liability companies, the 100,000 yuan requirement for establishing single-person limited liability companies, and the 5 million yuan requirement for establishing shareholding companies, according to the state council's website.
Bureaucratic procedures involved in the registration process for foreign companies will also see improvments, in part due to the establishment of an electronic registration system to eliminate the system of paper-based issuance of business licenses – practices already promised to be an integral part of Shanghai's pilot free trade zone.
During an executive meeting at the state council last month, premiere Li Keqiang said in that: "By widening the market access and establishing a transparent and efficient modern company registration system, we aim to further streamline government administration, create fair competition and support smaller businesses, especially innovative enterprises".
These latest deregulations are designed to attract more small and micro-sized enterprises with low registered capital.
Further reform is yet to be unveiled after China's much anticipated third plenum.