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    Benefits Of Loosening The Company'S Registered Capital

    2013/11/12 23:20:00 25

    RegistrationCompanyCapital

    The Executive Council meeting of the State Council on October 25th P put forward that, in addition to the provisions of laws and regulations, the limitation of the minimum registered capital of a limited liability company shall be 30 thousand yuan, the minimum registered capital of a one person limited liability company 100 thousand yuan, the Limited by Share Ltd's minimum < a href= "http://cailiao.sjfzxm.com /" > registered capital < /a > 5 million yuan, no longer limiting the initial capital contribution ratio and the time limit for full payment of shareholders when the company is established.

    This means that applicant company will no longer have financial constraints.

    < /p >


    In November 7th, at the news conference held by the State Council new office, Zhang Mao, director general of the State Administration for Industry and commerce, further explained that although the threshold of the registered capital was relaxed, "one dollar to run the company" was only a figurative metaphor. Instead of setting up a company, there would be no conditions and no money to run the company. Registered capital is only one of the basic conditions for establishing a company.

    < /p >


    < p > What does it mean to relax the terms of registration of registered capital? What changes will this reform bring to the market? Will it be faced with risks such as the emergence of "Bag Companies"? This article will give you the answer.

    < /p >


    Before P, we talked about independent innovation and technological progress, which is more of a top-down reform and innovation at the national macro level. We are concerned about big enterprises and large sectors. We often pay little attention to small businesses and bottom up innovative power from grassroots.

    And this bottom-up innovation power is the basic support for a society to continuously renew its vitality in the long run.

    < /p >


    < p > after the enterprise access reform, we need to further improve the enterprise supervision and management environment, and to better adapt to the "old age, illness and death" of small enterprises in the normal competition.

    < /p >


    To promote the reform of the company system is an important starting point for reconstructing the microeconomic foundation of our country, and it is also a manifestation of the new government's policy and reform "P".

    < /p >


    < p > < strong > Objective: to reform the registered capital system and to "relax" /strong for private entrepreneurs. < /strong >


    < p > registered capital registration system is to enable the company to have sufficient registered capital to ensure that the company's "a href=" http://www.91se91.com/news/index_p.asp "creditors" /a "benefits.

    But in fact, the company's financial position is constantly changing and can not be relied on by registered capital.

    < /p >


    < p > on the contrary, the requirements for minimum registered capital and the time for capital contribution have set a threshold for entrepreneurs to set up companies, limiting their freedom of use of funds and not encouraging entrepreneurship.

    At the same time, there are many hidden rules to avoid the registration rules. For example, many registered company agencies will provide "capital" and "bridge funds" to help enterprises reach the standard of registered capital.

    The registered capital system provides a living space for some registered agents in the "grey area".

    < /p >


    < p > in the 40s of last century, British scientist Joseph Needham conducted scientific and technological expedition in China, and spent a lot of time to prove that many of the world's inventions were accomplished by Chinese.

    He put forward a question in the history of Chinese science and technology: "although ancient China has made many important contributions to the development of human science and technology, why is it that the scientific and industrial revolution did not take place in modern China?" this is the famous "Joseph Needham problem".

    < /p >


    < p > there are many explanations for the "Joseph Needham problem".

    We believe that one of the reasons is that we are short of the "grass roots class" who are engaged in creation and entrepreneurship. The key point to solve this problem is to stimulate the innovation and Entrepreneurship of the grassroots.

    The development of small and micro enterprises is the main platform for innovation and entrepreneurship and an important force in promoting innovation.

    < /p >


    < p > < strong > influence: reduce entry threshold for entrepreneurship and benefit college students and grassroots entrepreneurship. < /strong > /p >


    < p > abolish the threshold of registered capital is an integral part of the reform of the commercial registration system. The purpose of the whole system is to stimulate the vitality of the market and promote the pformation of government functions.

    < /p >


    < p > for a long time, grassroots entrepreneurship has faced three challenges in China.

    First, the higher threshold for entry, the requirements for capital and qualification, and the complicated registration process make it difficult for many grassroots entrepreneurs who are trying to start a business to retreat.

    {page_break} < /p >


    < p > two is a burden on taxes and fees. Especially in some underdeveloped areas, small businesses have extra burden in addition to paying taxes and administrative fees in the system.

    < /p >


    < p > three is a financial burden, that is, the financing problem that has plagued small and micro enterprises for a long time.

    < /p >


    "P", of course, in recent years, the reform of the tax burden on small and micro enterprises and the "a href=" "http://www.91se91.com/news/index_cj.asp" > financing < /a > has been improved and the situation has been improved, although the two aspects have not been fundamentally changed, but these aspects have been loosened.

    Today, reform has finally involved the most obstructing enthusiasm for private entrepreneurship.

    It is foreseeable that with the deepening of these three reforms, the enthusiasm of grassroots entrepreneurship and private investment will be further stimulated, and China's economic development will gain new grassroots vitality.

    < /p >


    Under the high threshold and multiple burdens, the vitality of China's small and micro enterprises has not been fully explored. The absolute and relative quantity of P in the economy is not high from the international perspective.

    The reason is that in the past, under the circumstance of imperfect business environment and credit environment, the government was worried about loosening access, which would lead to chaos in small businesses.

    < /p >


    < p > but historical experience shows that this is just the idea of "choking away the food." we need to further improve the business supervision and management environment after the enterprise access reform, and to better adapt to the "old age, illness and death" of small businesses in the normal competition.

    < /p >


    < p > we can say that the reform of market economy needs not only the overall grand narrative, but also the enterprises as economic cells.

    Promoting the reform of the company system is an important starting point for reconstructing China's economic micro foundation, and also a manifestation of the new government's policy and reform.

    < /p >


    < p > < strong > challenge: focus on supervision and management activities, and financial system reform also needs to push forward < /strong > /p >


    < p > even if the registered capital system is not reformed, the minimum registered capital of the company will not work for those who really want to open the company.

    Therefore, the relationship between the bag company and the threshold of registered capital is not so large.

    < /p >


    On the contrary, relaxing the access threshold and reducing the government's intervention in the market does not mean that the government's omission is completely out of the regulatory field. Instead, it shifts the focus to the supervision of the company's business activities, and has increased the regulatory responsibility. P

    < /p >


    < p > small and micro enterprises are not accepted by banks because of their small registered capital, small scale and high risk.

    On the one hand, banks want to reduce their risk, and on the other hand, they want to reduce the cost of wide profits.

    < /p >


    < p > however, with the reform of registered capital system, banks also need to lower their high threshold, because encouraging entrepreneurship is not only the responsibility of the government.

    At the same time, with the advance of financial system reform, under the impact of interest rate liberalization and Internet finance, banks should turn their eyes to small and micro enterprises in the future.

    < /p >

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