SHANGHAI Feb 19 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
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)