New Rules to Ease Company Registration in China
In this article, we provide an overall idea of improvement of the company capital registration will focus on the following:
- Reducing the registered capital requirements to set up a company in China;
- Replacing the current annual inspection system of enterprises with an annual reporting system;
- Relaxing the criteria for business premise registration;
- Facilitating the launch of enterprise credit system;
Reducing the registered capital requirement to set up a company in China
According to the new PRC Company Law, minimum registered capital requirements have been removed and investors can now propose the amount of capital to inject and the period of the contribution of registered capital. Some companies operating in certain sectors will be an exception to this and will continue to be subject to minimum capital requirements imposed by industry-specific rules and regulations.
Replacing the current annual inspection system of enterprises with an annual reporting system
Relaxing the criteria for business premise registration
Facilitating the launch of enterprise credit system
The last two years a new credit system has been encouraged and information such as business registration, annual reports, and qualifications should be presented as credit information of each business entity in the credit system. Electronic business licenses and electronic registration management has also been encouraged. To eliminate law-breaking, entities could be placed in a ‘blacklist’ for violating laws and regulations and such wrongdoings shall be communicated to market players through the new system.
How HROne can be beneficial to your business in China
HROne’s service can handle the complete employee benefits for your company in compliance with the local policies and also can take care of the visa for your company’s expatriate employees. We can directly hire employees for a company not having a legal entity in China by our specialized Employee Leasing/Talent dispatching services.
The information contained in this article is valid on October 25th, 2016. For updated information, please contact us via email at [email protected]