China’s recent changes to streamline its corporate registration system will ease market access and encourage private investment for business startups, especially small and medium-sized enterprises (SMEs).

The new measures will remove the minimum registered capital requirements for limited liability companies, one-person limited liability companies, and joint-stock companies with limited liability.  In addition, current annual inspections of sites registered for business operations will be replaced by annual reports open to public inquiry.

According to National Bureau of Statistics data, SMEs provide more than 80 percent of jobs in Chinese cities and the number of micro-, small and medium-sized enterprises represents 99.7 percent of the total number of businesses in China.