Lowering The Threshold Does Not Mean That Success Is Easy.

The "one man company" and "50 thousand yuan registration company" have attracted the attention of the company law.

In the eyes of the media and ordinary readers, the recognition of the "one person company" by the state has lowered the threshold for entrepreneurship and stimulated the entrepreneurial desire of individuals.

Contrary to it, some enterprises think that "one man company stipulates no need".

Zhang Xiaosen, director of the Specialized Committee law of the Beijing Lawyers Association, said that at the forum held in July 26th, more than 10 representatives of enterprises expressed doubts about the "one man company" written into the draft. In particular, the separation between a wholly owned company and a wholly state-owned company was not understood. It was hoped that a wholly owned company and a wholly state-owned company would be called a limited liability company.

Because if it is written on the business license as "one person sole proprietorship", it is tagged at birth, which is not conducive to the development and competition of enterprises.

No matter how big the reaction between the "one man company" and "50 thousand yuan registration company" in the public and enterprises, Zhang Xiaosen's view that the company law draft has undoubtedly lowered the threshold of registered enterprises, and the lowering of the threshold will not conflict with the modern enterprise system. The volume of book capitals has dropped from 100 thousand yuan to 50 thousand yuan. This stipulation has no direct relationship with the corporate governance structure. The lowering of the threshold is actually the relaxation of the registered capital system in China.

"I think it is good to amend the company law this time. It reflects a basic fact: China's investment environment and structure are undergoing great changes after more than 20 years of reform and opening up."

Liu Chijin, President of the Pan Pacific Management Research Center, pointed out.

Mr Liu Chijin and some companies are not so different from the "one man company" and "50 thousand yuan registration company". In his view, lowering the threshold of setting up a company is certainly conducive to starting more entrepreneurs. From a macro perspective, it can create more opportunities for employment and self employment.

In fact, not only in China, small and medium-sized enterprises have huge economic and social functions, but also in the economically developed United States. More than 90% of American enterprises are small and medium-sized enterprises, which have solved nearly 70% jobs in the United States.

"Lowering the threshold of corporate registration may further stimulate the rise of China's service industry and better meet the needs of the new market."

Liu Chijin said that China's consumption structure is rapidly moving closer to the service industry which is closely related to people's lives, such as children's education, health care, family decoration, door-to-door installation or maintenance services, which is pregnant with huge business opportunities.

Large enterprises lack competitiveness in these areas, and SMEs have the advantage of flexibility.

Liu Hongyu, a lawyer at Tongda law firm, proposed the abolition of the minimum capital system at the Symposium on the revision of company law in April 7th.

In an interview with reporters, he talked about the original intention of putting forward the proposal: first, the threshold of registered companies is high, which is not conducive to the development of entrepreneurship and small and medium-sized enterprises; two, many enterprises are using a registered capital to measure an enterprise, in fact, registered capital can not guarantee the function, using registered capital to measure a person's integrity, in fact, give people a misunderstanding of the guarantee function.

Will there be some new problems in the reduction of company threshold? Zhang Xiaosen believes that the reduction of registered capital actually reflects a system problem of the company law, namely authorized capital system or strict registered capital system.

But in any case, the problem is not just 50 thousand yuan.

China is currently implementing the real investment capital system, also known as the registered capital system.

In fact, in the international arena, the company registration is generally authorized by the capital system, which can be registered by a dollar.

"One man company" is not directly related to registered capital. 50 thousand is not set up for "one person company". It can be an investment company that many people participate in, and the total capital is 50 thousand yuan.

Zhang Xiaosen believes that in the foreseeable future, limited liability companies and joint liability companies will still be the main body of our company's form.

Liu Chijin's registration threshold is reduced, and the opportunities for business creation are increasing. Meanwhile, competition will also intensify. Therefore, the state authorities concerned should provide some necessary help or guidance to the small registered enterprises, and all entrepreneurs must understand that the success of an enterprise has little to do with the initial registered capital of the enterprise. The key is whether your product is competitive, and whether your customers and your team are competitive.

The original company law was passed by the fifth session of the eight NPC Standing Committee in December 29, 1993.

The draft amendment to the company law has been basically formed and submitted to the Standing Committee of the National People's Congress for consideration during the year.

The draft stipulates that a natural person can invest in the establishment of 1 limited liability companies with a minimum registered capital of 50 thousand yuan.

The 50 thousand yuan can be cash, or in real estate, intellectual property, non patented technology, land use rights, equity pricing, etc., and the amount of cash contributions is not less than 30%.