PROMOTING ENTREPRENEURSHIP
The process for the registration and establishment of a company in China (only for reference):
- transact relevant procedures such as company name approval, registration, etc through mobile APP.
- Make the public seal and financial at the seal-engraving agency specified by the Special Industry Section of Public Security Bureau in virtue of Business License.
- Handle the enterprise’s Certificate of Organization Code: Handle the Certificate of Organization Code with the Technical Supervision Bureau in virtue of the Business License. It will take around half a month;
- Open a basic account with a bank: Open a basic account with a bank in virtue of the Business License and the Certificate of Organization Code. It is suggested to open the account with the same outlet of the bank where you’ve handled capital verification originally;
- Handle taxation registration: Apply to the local taxation bureau for acquiring the Certificate of Tax Registration within 30 days after acquiring the License. Companies are generally required to obtain 2 certificates of tax registration, namely, national tax and local tax;
- Employ a part-time accountant: There must be an account when handling the certificate of tax registration, since the materials that the Tax Bureau requires include the Certificate of Accountant Qualification and his or her ID Card;
- Apply for acquisition and purchasing of invoices.
Information Sources:
http://zwdt.ndrc.gov.cn/fwdt/fwdttzgg/201808/t20180831_897273.html
http://www.yueyang.gov.cn/mlzfw/25310/27768/27779/content_715923.html
Relevant laws, documents, policies, and measures of the Chinese Government in terms of promoting the growth of foreign capital, creating a good business environment, continuing to deepen the reform “to delegate power, streamline administration, and optimize government services”, lowering institutional transaction costs, and realizing mutual benefits and win-win cooperation.
There are reference values for enterprise investment and operation in the following policy documents:
- June 29, 2018: Order of the National Development and Reform Commission of the People’s Republic of China and the Ministry of Commerce of the People’s Republic of China No.18 of 2018 on Special Administrative Measures (Negative List) for Foreign Investment Access (2018 Edition) (No. 18 Order in 2018 of the National Development and Reform Commission and the Ministry of Commerce)
(http://english.mofcom.gov.cn/article/policyrelease/announcement/201807/20180702765903.shtml)
- December 29,1993: Company Law of The People’s Republic of China (Adopted at the Fifth Session of the Standing Committee of the Eighth National People’s Congress on December 29,1993)
(http://english.mofcom.gov.cn/article/lawsdata/chineselaw/200211/20021100053539.shtml)
- December 13, 2007: Accounting Law of the People’s Republic of China (revised at the 12th Meeting of the Standing Committee of the Ninth People’s Congress on October 31, 1999 and promulgated by Order No.24 of the President of the People’s Republic of China on October 31, 1999)
(http://www.npc.gov.cn/englishnpc/Law/2007-12/13/content_1383953.htm)
- December 12, 2007: Labour Law of the People’s Republic of China (Adopted at the Eighth Meeting of the Standing Committee of the Eighth National People’s Congress on July 5, 1994 and promulgated by Order No. 28 of the President of the People’s Republic of China)
(http://www.npc.gov.cn/englishnpc/Law/2007-12/12/content_1383754.htm)
- December 6, 2007: Law of the People’s Republic of China on Promotion of Small and Medium-sized Enterprises (Adopted at the 28th Meeting of the Standing Committee of the Ninth National People’s Congress on June 29, 2002 and promulgated by Order No. 69 of the President of the People’s Republic of China on June 29, 2002)
(http://www.npc.gov.cn/englishnpc/Law/2007-12/06/content_1382128.htm)
- September 2, 1993: Anti Unfair Competition Law of The People’s Republic of China (Valid From:1993.12.01)
(http://english.mofcom.gov.cn/aarticle/lawsdata/chineselaw/200211/20021100050495.html)
- June 10, 2018: Circular of the State Council on Measures to Actively and Effectively Utilize Foreign Capital to Promote the High Quality Economic Development (State Council of China [2018] No. 19).
Chinese Government continues to strengthen the financial support for micro- and small-sized enterprises, and has achieved positive achievements in various fields. Inclusive financial service system has been forged, financing products and services are constantly innovated, guarantee system is improved, policy instruments and the methods which government gives play to its roles are enriched, financial resources are guided to flow towards micro- and small-sized enterprises, and led to the continuous enlargement of the financing scale of micro- and small-sized enterprises.
Chinese Government actively promotes industry-financing cooperation to lower financing costs. Ministry of Industry and Information Technology of the People’s Republic of China (MIIT) has selected more than 20 cities to develop pilot industry-financing cooperation, and pushed financial institutions to channel more funds into the substantial economy, so as to solve the problem of difficulties and high costs in the financing of SMEs. Chinese Government carries out the policy measures for the finance to support the development of micro- and small-scale enterprises, give well play to the role of financial institutions in banking industry as the main channels for the financing of micro- and small-sized enterprises, and promote the relief of difficulties and high costs of financing for micro- and small-sized enterprises.
Information Sources:
http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057527/n3057540/index.html
http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057527/n3057537/c6445619/content.html
Relevant tasks will be done under the following four basic principles:
- Insist on serving entities. Venture capital investment is an important means for improving investment structure and increasing effective investments. The Chinese Government will continue to strengthen the support for the real economy, reinforce the sustainability, and build the environment for “venture capital investment of entities”.
- Insist on professional operation. Being market-oriented, the Chinese Government will sufficiently mobilize the enthusiasm of private investment and market subjects, give play to the roles of market rules, excite non-governmental innovation model, and prevent homogeneous competition.
- Insist on credit orientation. The Chinese Government will strengthen the construction of credit system in venture capital investment industry, establish and improve the system of joint incentive for keeping promises and joint punishment against breaching promises.
- Insist on social responsibility. Focusing on the mission and social responsibility of promoting the construction of an innovative country, supporting the mass entrepreneurship and innovation, and boosting economic structure adjustment and industrial transformation and upgrading. The Chinese Government will guide the venture capital investment industry to develop investment operation activities strictly according to relevant laws and regulations of China, and relevant industrial policies.
Information Sources:
http://www.gov.cn/premier/2018-12/24/content_5351724.htm
http://www.mofcom.gov.cn/article/b/g/201612/20161202421581.shtml
http://www.miit.gov.cn/n1146290/n1146392/c6558594/content.html
The Chinese Government has always been committed to supporting the innovation of SMEs:
- Improve relevant policies. At present, the Chinese Government is putting forth efforts to construct a technological innovation system which takes enterprises as subjects, is oriented at market, and combines industry, universities and research. Meanwhile, the Chinese Government has implemented many policies supporting the technological innovation of SMEs, and encouraged enterprises to increase the input for research and development, accelerate the transformation of scientific and technological achievements, and promote governmental procurement for independent innovation.
- Increase financial support. In recent years, Chinese Central Government and some provincial and municipal governments have set up special funds, such as the Fund for Technological Innovation of Scientific and Technological SMEs, and the Fund for the Development of SMEs, giving play to the guiding role of governmental funds in the input for innovation.
- Integrate various resources. The Chinese Government encourages universities, scientific research institutions, and large-sized enterprises to open scientific research facilities to SMEs, and encourages SMEs to establish long-term partnership with universities and scientific research institutions, aiming to strengthen industry-university-research unification. Also, the Chinese Government encourages various scientific and technological intermediary agencies and professional service institutions to provide services to SMEs.
- Strengthen the support for the establishment of public service platforms. In recent years, in the fields where SMEs are relatively concentrated, the governmental departments have actively promoted the construction of public service platforms to provide SMEs with the services in terms of testing, research and development, industrial design, centralized management of pollutants, etc.
- Pay attention to the training of innovation talents. Since 2003, China has trained more than 1,000,000 enterprise operation managers and technical personnel by many means and through many channels, and has continuously organized the operation managers of SMEs to accept trainings in famous universities like Tsinghua University.
- Pay attention to the protection of intellectual property rights. Aiming at the current state of intellectual property rights of SMEs, the Chinese Government has promoted the development of the activity of “Patent Action of SMEs”, and raised the legal awareness of intellectual property rights protection of SMEs.
- Further promote “innovation and entrepreneurship”. The Chinese Government develops “Internet+” entrepreneurship and innovation training action for MSMEs, implements the project of promoting the informatization of SMEs, gives play to the role of the public service platform “Maker in China”, gathers entrepreneurship resources, and provides entrepreneurs with the services such as communication and exhibition, industry and finance connection, and project incubation.
Information Source:
http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057527/n3057539/index.html
Chinese Government has been actively promoting multilateral cooperation, pushing forward economic globalization and establishment of a community with a shared future for mankind. Comparing to current improvement of investment environment, in the past, China attracted foreign mainly through preferential policies. Chinese Government will strengthen the matchmaking of international trading rules, enhance transparency, iintensify property right protection, stick on handling affairs in accordance with law, encourage competition and oppose monopoly. Chinese Government will persistently pursue the opening strategy of mutual benefit and win-win result, and implement policies on high-level trade and investment liberalization / facilitation.
Relevant departments of the Chinese Government make innovations and improvements, tackle and overcome difficulties, actively plan for enlarging the opening to the outside world, execute high-level policies for free and convenient investments, and put forth efforts to cultivate new advantages for using foreign capital. System of national treatment plus negative list management before admission is comprehensively implemented, market access is substantially relaxed, so as to protect the legitimate rights and interests of foreign investment, create a good business environment, effectively promote the growth of foreign capital, and use foreign capital to realize improvement and betterment while remaining steady.
Chinese Government deeply promotes the reform “to delegate power, streamline administration, and optimize government services” in the field of foreign capital, vigorously promotes the system of national treatment plus negative list management before admission, substantially relaxes the access for foreign investment, strengthens the protection of the legitimate rights and interests of foreign investment, improves the business environment for investment, encourages foreign merchants’ investment and business operation in China continuously and for long term, and uses foreign capital to realize the steady enlargement of scale, and the steady enhancement of quality and level.
In 2017, the Chinese Government continued to promote the expansion of opening to the outside world, deepened the reform of foreign investment management system, uniformly promoted the construction of pilot free trade zone, and pushed the transformation and upgrading of national economic development zones, effectively promoting the growth of foreign capital:
- Continuously expanding the opening to the outside world
With the further enhancement of the legalization, internationalization and facilitation of Chinese foreign investment environment as starting point, and aiming to promote the growth of foreign capital and enhance the utilization quality of foreign capital.
- Constantly deepening the reform of foreign capital management system
Chinese Government has further narrowed the scope of examination and approval on the establishment and alteration of foreign-invested enterprises, and incorporated establishment through foreign capital merger and alteration of enterprises not involving special access management measures into the filing management.
- Uniformly planning the construction of pilot free trade zone
The Chinese Government has comprehensively deepened the plan for the reform and opening to the outside world, and supervised each department to implement the plans. Also, the Chinese Government has strengthened pressure test and risk prevention and control, reduced the restrictive measures for the negative list of pilot free trade zones, and further enhanced the level of opening to the outside world.
- Innovating the construction of open carriers and platforms
The Chinese Government has implemented the project of improving the innovation of development zones, and uniformly promoted the construction of border economic cooperation zones and cross-border economic cooperation zones. Also, it has coordinated special financial and policy support, developed special investment trade promotion activities, assisted border regions to cultivate characteristic advantaged industries, and increasingly consolidated the foundation for open development.
Under the guidance of the national policies, the foreign investment in China was further optimized in terms of the source structure, industrial structure, regional layout and investment method, further enhanced in terms of the quality and level, and continued to extend the development trend of gathering towards high-end industries, and the introduction of technologies and intelligence became a new kinetic energy for the development of foreign capital.
Information Sources:
http://wzs.mofcom.gov.cn/article/ztxx/201810/20181002793208.shtml
