China relaxes capital requirements for some firms to cut red tape
SHANGHAI Feb 19 (Reuters) - China has relaxed capital requirements for companies in some sectors as part of broader efforts to cut red tape and lower the cost of starting businesses, according to a document issued by the State Council late on Tuesday.
China will scrap the minimum registered capital requirements for self proprietorships, limited liability companies and corporations which were previously set at 100,000 yuan ($16,500), 30,000 yuan and 5 million yuan, respectively.
However, the restrictions will remain in place for 27 industries, such as banks, fund management firms and insurance companies, securities firms and those involved in financing.
In a series of sweeping reforms published in November, China's ruling Communist Party promised to free up the market by simplifying administration and "restrict central government management of microeconomic issues to the greatest possible extent".
In a bid to boost economic growth, China has vowed to cut red tape to make it easier to start busineses in the country as well as to reduce opportunities for corruption.
($1 = 6.0673 Chinese yuan) (Reporting by Fayen Wong; Editing by Jacqueline Wong)