China makes it easier to start a business

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I blog, China responds:

China has revised its company law, drastically lowering the minimum capital required for domestic companies to begin operations. The new requirement, which will come into force on January 1, 2006, is set at RMB30,000 for limited liability companies in all industries. Previously, entrepreneurs who wished to open a manufacturing or wholesaling business had to put down RMB500,000, as compared to RMB300,000 in retailing and RMB100,000 in services... Prior to this reform, China had the 8th highest minimum capital requirement in the world, equivalent to 947% of the country’s average annual income per capita.

That's from an IFC press-release. IFC is reporting on this because this is something that the Doing Business report has emphasised. One of the conclusions of the report is that many such reforms are in reach of every country.

Update: more via Shanghai Daily.

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