Guangdong Prioritises High-Quality Development of Private Sector
07 December 2018
It will now be easier to start and develop private companies within Guangdong following the introduction of a number of new measures on the part of the municipal government. Among the specified changes are simplified registration procedures, equal access for public and private enterprises and a range of tax breaks. Financing will also become more easily obtainable, with local lenders incentivised to support small businesses.
The changes were highlighted in the recently-circulated Several Policy Measures for Promoting the High-Quality Development of the Private Sector, with the more specific measures to be adopted including:
Further Optimising Examination and Approval Services.
In line with this, steps will be taken to streamline the procedures for establishing enterprises, simplifying business registration requirements, and accelerating the company chop registration process and the issue of invoices, as well as simplifying the investment approval protocols.
Further Easing Market Access.
In accordance with this, private and public-sector businesses will enjoy equal status, which will comply with unified negative list approach for market access that is being implemented across the mainland.
Reducing the Production and Operating Costs of Private Enterprises.
The proposed measures here include the implementation the state-wide lower tax regime for manufacturing, communications and transportation businesses, as well as for those in a number of other industries. Other related initiatives include the unification of the eligibility criteria for small-scale VAT taxpayers, income tax concessions and the enhanced deduction of R&D expenses for new and high-tech enterprises for income tax purposes.
Alleviating the Financing Problems of Private Enterprises.
In order to deliver on this, banks will be encouraged to ensure that the year-on-year growth rate of loans for micro and small enterprises (with a total credit line of RMB10 million for each single client) is not lower than that for any other type of loan.
Promoting the Innovative Development of Private Enterprises.
This will see steps taken to foster innovation-driven enterprises and to support the larger private sector businesses in any moves they may make to actively participate in major scientific and technological projects at a national, provincial or city level.
Placing the Public Service System of Private Enterprises on a Sound Footing.
Supporting Private Companies in Nurturing and Recruiting High-Level Staff.
For further details (in Chinese), please access the following link: