China's amended Company Law facilitating more business
The 12th Standing Committee of National People's Congress (NPC) hammered down its decision to amend the <Company Law of the People’s Republic of China> (New Company Law) at its sixth meeting on 28 December 2013. This round of amendments is the fourth one since the enactment of the Company Law and is an important one. The New Company Law shall take effect from 1 March 2014. These amendments originated from the Executive Meeting of the State Council held by Premier Li Keqiang on 25 October 2013. The Executive Meeting's role was to reform the registered capital system. The New Company Law revamps the company establishment system with the purposes of streamlining the registration formalities and relaxing the threshold for setting up a company in China. By doing so, it is expected to encourage more entrepreneurs to start their own businesses resulting in fostering the growth of the individual economic sector. More importantly, the New Company Law provides sound legislative protection in the vigorous economic development of China.
Other issues of China Tax/Business News Flash Visit our Tax Library.