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China Daily Website

Rules changing for business start-ups

Updated: 2013-12-30 17:25
By Zheng Yangpeng ( chinadaily.com.cn)

Business start-ups will soon no longer need to set up a corporate account for registered capital.

The change is contained in an amendment to China's Corporation Law, passed by the national legislature on Sunday.

Instead of depositing a certain amount of registered capital in a corporate account that cannot be spent freely, shareholders (sponsors) will soon be able to determine the amount and duration of registered capital at their own discretion.

But they will be held liable for the authenticity and legitimacy of their investment payments.

The change will take effect on March 1.

The amendment states that the minimum registered capital requirement of 30,000 yuan ($4,900) to start a limited liability company will be scrapped, as will the 100,000 yuan requirement for a one-person limited liability company and the 5 million yuan requirement for an incorporated company.

There will be no more limits on the proportion and duration of the paid-in capital, and this will no longer be a matter of industry and commerce registration.

All the changes were ordered at a State Council executive meeting on Oct 25 presided over by Premier Li Keqiang.

The reforms are aimed at unleashing market dynamism, encouraging private businesses and boosting employment.

 
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