Guangzhou City, Further Relaxing Restrictions for Market Entry in order to Accelerate Economic Development Several Provisions

Promulgated: August 1 2003

Main contents: The Provisions relax restrictions on registered capital, method of capital contribution, examination and approval of specialized projects, limited liability conglomerates and chain businesses, licensing and annual inspections, enterprise registration, the establishment of some enterprises, the registration of private credit and security companies, the registration of the establishment of a market, and registration of mortgages over chattels (Items 1-10).
  Investors are allowed to pay their registered capital in instalments when starting a limited liability company with a registered capital of Rmb500,000 or less (Item One). If starting a science and technology-type enterprise, the investor may use industrial property rights or non-patent technology as contributions to account for at most 60% of the registered capital (Item Two). A business entity may be registered as a limited liability conglomerate if the combined registered capital of the parent company and subsidiaries amounts to Rmb60 million or more, with Rmb30 million from the parent company and the number of controlling subsidiaries being at least three (Item Four).
Related legislation: Guangdong Province, Accelerating the Development of Private Economy Decision