Company registration requirements in China are most likely going to be eased for foreign firms. The registration requirements which the Chinese counterparts already enjoy are likely to be eased in the country in the near future, it was confirmed on Thursday, November 7, 2013.
The ‘national treatment’ principle stated that when the government of China lowered the requirements for business startups, then foreign firms in the country must also get the same treatment. The head of the State Administration of Industry and Commerce, Zhang Mao confirmed the news during a press conference in Beijing on November 7, 2013. The premier of China, Li Keqiang presided over the meeting of the State Council executive which was held on October 25, 2013 and chose to streamline the process of company registration in the country.
The latest efforts are being made in order to comply to international standards, in addition to encouraging private investment. A statement from the meeting said that the minimum registered capital required of 30,000 yuan to begin the liability company will be nixed and no limitations will be placed on the proportion and duration of the paid-in capital.
The amount, as well as the duration of registered capital will be determined at their own discretion by shareholders, but will be held liable to the authenticity and legitimacy of their investment.
Photo Credits: Bloomberg