The government of Guangzhou has adopted a new policy regarding the company registration, which is effective on 1 January 2014 in the entire administrative area of Guangzhou Municipality. The purpose of this reform of company registration is to lessen the restrictions on business registration, activate the investment and other business activities, and promote the development of the economy.
The main points of the above new policy in Guangzhou are as follows:
1. The requirement of prior special permit(s) for the registration of a company has been abolished, except in some special industries, such as financing, telecommunication and etc, which may have an effect on the security of the country. A company is allowed to be registered first, and later apply for special permits required by the laws and administrative regulations for some business activities, such as the manufacture or sale of food, alcohol and etc.
2. The requirement of capital contribution with a compulsory time limit has been abolished. The investors (shareholders) of a new company are allowed to contribute the registered capital within the time period specified in the Article of Association of the company within the term of the company. This new policy allows the shareholders of a newly registered company to contribute the registered capital at the time when and at the amount which is necessary.
3. The prohibition of an address to be used by more than one company for registration has been abolished. An address is allowed to be used by more than one company for registration if: (1) these companies have connections with each other (such as a parent company and its subsidiary); (2) the company is to be registered in an Industry Zone or in a Science and Technology Park approved by the government of a district or county level.
4. To set up a branch in the same district where the parent company is located, the requirement of the registration of the branch has been abolished. The parent company just needs to report the relevant information of the branch to the registration authority for recordation.
The above reforms made it easier and faster to register a company in Guangzhou.
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