Circular of the State Council on Issuing the Reform Proposals for the Registered Capital Registration System

Circular of the State Council on Issuing the Reform Proposals for the Registered Capital Registration System

Guo Fa [2014] No.7

February 7, 2014

The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government and all ministries and commissions of the State Council and all institutions directly under the State Council,

The State Council has approved the Reform Proposals for the Registered Capital Registration System (hereinafter referred to as the "Proposals"), which are hereby printed and issued.
　
Article 1 The reform of industrial and commercial registration system and the promotion of the facilitation of industrial and commercial registration system are material decisions of the CPC Central Committee and the State Council. The reform of registered capital registration system is an important measure, which deeply implements the spirits of the 18th National Congress of the CPC and the second and third plenary meetings of the 18th National Congress of the CPC, and is significant for speeding up the functional transformation of governments, innovating regulation methods of governments, establishing fair, open and transparent market rules and guaranteeing ventures and innovations.
　
Article 2 As the reform of registered capital registration system is extensive and largely depends on policies, the people's governments at different levels shall reinforce organization and guidance, and coordinate with the solutions of specific problems during the reform. All regions and all departments shall cooperate closely and speed up formulating and improving implementing measures. The administrations for industry and commerce shall optimize processes and improve systems so as to ensure the stable transition of management work before and after the reform. Self-management of enterprises, self-discipline of industrial associations and supervision functions of social organizations shall be strengthened and market regulation level shall be enhanced so as to practically implement the reform, further release reform bonuses, inspire venture vitalities and generate new development motivations.
　
Article 3 Relevant administrative regulations and decisions of the State Council are modified in accordance with the decision of the Standing Committee of the People's Congress on revising the Company Law and the Proposals. Specific provisions shall be otherwise announced by the State Council.

The State Administration for Industry and Commerce shall report material issues arising during the implementation of the Proposals to the State Council in time.

Reform Proposals for the Registered Capital Registration System

In order to actively and steadily promote the reform of registered capital registration system, the Reform Proposals for the Registered Capital Registration System (hereinafter referred to as the "Proposals") are hereby formulated in accordance with Proposals of the State Council for Institutional Reforms and Functional Transformation.
　
Article 1 Guidelines, Overall Objectives and Basic Principles
1. Guidelines.
Hold high the great banner of socialism with Chinese characteristics, take Deng Xiaoping Theory, important thought of Three Represents and scientific outlook on development as guidelines, insist on the reform direction of socialist market economy, impel the reform of registered capital and other registration matters of companies, propel the reform of supporting regulation system, perfect modern enterprise system and serve sustainable and sound development of economic society according to requirements for speeding up functional transformation of governments and building up service-oriented governments.
2. Overall Objectives.
Through the reform of registered capital and other registration matters of companies, further relax the control of market subjects access, reduce access thresholds, optimize operation environments and promote market subjects to speed up development; through the reform of supervision and administration system, further transform supervision and administration methods, strengthen credit supervision and administration, promote synergic supervision and administration and improve supervision and administration effects; through intensifying the information announcement of market subjects, further enlarge social supervision, facilitate social shared governance, inspire various market subjects to create vitalities and strengthen endogenous power of economic development.
3. Basic Principles.
(1) Convenience and high efficiency. According to requirements of proper conditions, simple procedures and low costs, facilitate applicants' handling of the registration of market subjects. Encourage investments and ventures, innovate service methods and enhance registration efficiency.
(2) Standard and unification. Implement unified registration procedures, registration requirements and basically equal registration matters for various market subjects, standardize registration conditions and materials and reduce the intervention in autonomous matters of market subjects.
(3) Loose access and strict administration. While extending the access conditions of registered capital and others, further intensify the responsibilities of market subjects, perfect and improve supporting supervision and administration system, consolidate the supervision and administration over market subjects and promote the construction of social integrity system so as to maintain the market order of loose access and fair competition.
　
Article 2 Relax the Access Control over Market Subjects and Effectively Optimize the Business Environment
1. Implement the registered capital subscription registration system. The total capital contributed by shareholders of companies or the total share capital subscribed by promoters (namely, the registered capital of companies) shall be registered with the administrations for industry and commerce.
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