China will streamline its corporate registration system to ease market access and encourage social investment; and the move aims to foster a market environment of fairness and competition, mobilize social capital, encourage small and micro enterprises to grow and boost employment.

According to the Company Law of P.R.China, the current minimum registered capital requirement of 30,000 yuan ($4,900) to start a limited liability company ,which will be removed, as will the 100,000 yuan requirement for an individual company and the 5 million yuan requirement for a joint stock limited company.
 
There will also be no more limitations on the proportion and duration of the paid-in capital, and it will be no longer a matter of business registration. Instead, the amount and duration of registered capital will depend on the founder of the company.

The latest reforms also involve replacing the annual inspection of companies with a reporting system that can be viewed online to increase the transparency of business operations;while companies that commit aberrant behaviors will also be made public. Requirements for company registration address will be simplified.

A system of subscribed capital will also be promoted in an effort to lower the cost of founding a company.

The reforms were announced at an executive meeting of the State Council led by Premier Li Keqiang on 25 October. The meeting asked local governments and various departments to speed up the amendment of related laws and regulations, as well as to construct a system to display corporate credit information.

From 2006 to 2012, the proportion of private investment as a percentage of total volume in China has increased from 49.8 percent to 61.4 percent.