SHANGHAI (Reuters) - China has eliminated some registered capital requirements for establishing new companies, the government said on Sunday, in a move to support long-term growth by cutting red tape and supporting small businesses.
Chinese Premier Li Keqiang has in recent weeks emphasized the need for administrative deregulation. Further administrative reforms are expected in the run-up to a key Communist Party meeting scheduled for next month.
The State Council, China’s cabinet, approved the rules at a regular meeting that Li chaired on Friday, according to announcement posted on the council website on Sunday.
The reforms eliminate the 30,00 yuan requirement for establishing limited liability companies, the 100,000 yuan requirement for establishing single-person limited liability companies, and the 5 million yuan requirement for establishing shareholding companies, the council said.
The new rules also call for simplifying bureaucratic procedures for establishing new firms and the creation of an electronic registration system to reduce the system of paper-based issuance of business licenses.
The Shanghai Free Trade Zone, formally launched earlier this month, has also adopted simplified business registration and investment procedures as a centerpiece.
Reporting by Gabriel Wildau; Editing by Jeremy Laurence