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      China relaxes company registration requirements

      2013-10-28 07:48 Xinhua Web Editor: qindexing
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      China will streamline its corporate registration system to ease market access and encourage social investment, a fresh effort highlighting the government's administrative reform, according to a cabinet statement released on Sunday.

      The move will foster a market environment of fairness and competition, mobilize social capital, encourage small and micro enterprises to grow and boost employment, according to a statement released after a State Council executive meeting presided over by Premier Li Keqiang on Friday.

      "It is necessary that the measures be carried out across the board," the statement said, adding that the move is in line with general market expectations and conducive to expanding social investment and strengthening the steady economic trend.

      According to the statement, requirements for the minimum registered capital for limited liability companies, one-person limited liability companies, as well as joint-stock companies with limited liability, will be scrapped.

      Requirements on the site registered for business operation will also be relaxed, the statement said.

      To improve transparency and strengthen business credit, the current annual inspections on registered companies will be replaced by annual reports open to public inquiry, while companies that commit aberrant behaviors will also be made public.

      A system of subscribed capital will also be promoted in an effort to lower the cost of founding a company, said the statement.

      The meeting asked local governments and various departments to speed up the amendment of related laws and regulations, as well as to construct a system to display corporate credit information.

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