Shanghai Free Trade Zone Allows Offshore RMB Borrowing

28 Feb 2014 1:24 PM -

Welcome readers,

Please take the time to read this new release on the free trade talks.

Companies based in the Shanghai free trade zones will now be permitted to engage in off shore RMB borrowing and examine how incorporation requirements will be lowered as part of China's reform scheme for business registration.

SHANGHAI – To further lower the requirements for registering new businesses in China, the State Council, China’s cabinet, recently revealed their scheme for the reform in business registration. The scheme is a vigorous move in executing the objectives determined in the Third Plenum last year to establish an open and competitive market. Decisions made in the Third Plenum after the enthronement of a new leadership in China usually serves as an indication of how the country will be led for the next decade. China amended its Company Law at the end of 2013. The new law will remove the registered capital requirements for company establishment, replace the paid-up capital registration regime with a subscribed capital registration regime, and will remove the minimum cash contribution requirement. The new Company Law will come into force on March 1, 2014. Registering under the subscribed capital method allows companies to complete the business registration process without having to inject any initial capital contributions upon startup. Companies will also be able to decide on the amount, method, and deadline for capital contributions at their own discretion.

This will no doubt benefit all of us in business one way or another as we are affected by this.

Cathryn Austin

Director/Licensee

Aus. International


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