At the same time as Hong Kong is implementing its reform of its companies law, China has announced simplification of its company rules.
The main proposed changes include:
- Removal of minimum registered capital requirements
- No required schedule for payment of full share capital,or proportion for the initial paid-in capital
- Relaxation of registration address requirements (Details unclear.)
- Cancellation of annual inspection and replacement with an annual reporting system
- Online access to company information such as registration and annual reports
The above proposals reflect the trend to continuing improvement of ease of doing business in China, such as the recent easing of company registration procedures in Shenzhen and in the new Shanghai Free Trade Zone. However, they are only proposals at this stage.
