Policy Reforms for China Business Start-up
In China, the government is also making efforts to transform its functions, which will benefit enterprises running businesses in the world’s second largest economy. After relaxing company registration requirements, experts say, the Chinese government should formulate follow-up policies to ensure orderly, smooth operations for new enterprises.
company registration and maintenance requirement
1. Minimum registered capital requirements will be scrapped for limited liability companies
2. Replacing the current annual inspections on companies with annual reports open to public inquiry;
3. Improving the mechanism for promoting business integrity.
4. “Capital Paid-In System” Replaced by “Capital Subscription System”
Annual Inspection Replaced by Annual Reporting
The annual inspection system has been replaced by an annual reporting system, where companies are required to submit annual reports including information on the company’s paid-in capital.
The SAIC or its local branches will conduct random review of the contents of a company’s public reports and will impose administrative penalties on those companies that are found to have concealed information or provided false information in their annual reports. Further, companies that fail to publicize their annual reports could be listed in the “List of Enterprises with Abnormal Business Operations” or the “black list” on the Public System.