According to an official statement reported by the China-based Xinhuanet news site, the Chinese government will enact reforms in the corporate registration system to make accessing the Chinese market easier, as well as foster social investment, for example investing in the sustainability of the food and agriculture industry, from crop cultivation and raising livestock, to distribution and packaging. The move comes as part of a larger administrative reform.
The aim is to make transparency, fairness and competition the pillars of doing business in China, mobilizing social capital, and helping small and micro enterprises thrive, with a boost in employment. A second document emitted after a State Council meeting led by Premier Li Keqiang stated, “It is necessary that the measures be carried out across the board”.
To make business more transparent and strengthen credit, current yearly inspections on registered entities in China will become annual reports open to public inquiry, even in the case of negative findings. Registered capital minimums for limited liability organizations structured as both one-person and joint stock companies will be removed. Finally, a system of subscribed capital will be introduced in an effort to lower costs of starting up new companies.