New Procedures to Make Foreign Company Registration much Easier in Guangdong
The Southern part of Guangdong, considered an economic powerhouse in China, is planning to expand its Internet based administrative approval system to nine cities found near the Pearl River Delta. This move will streamline all procedures that concern all foreign funded companies. Currently the system is running on a trial basis in Dongguan, Foshan and Guangzhou.
Local media already did a series of reports on the time consuming and lengthy process that foreign funded enterprises have to undergo just to get registered in the province. Wang Yang, Guangdong Party Secretary has said that the province must create an excellent business environment so the province can keep up with advance global practices. Several Hong Kong investors have already voiced out their concerns on the difficulties in registering and de-registering their companies in the province.
Of 7,000 newly registered foreign invested companies, only 3.33 percent were approve by the provincial department of foreign trade and economic cooperation. This year the department is planning to turn over the power of approval to city level authorities. The provincial administration of industry and commerce is finding new ways to create a better registration service that will include online applications and a courier service.
Last month the State Administration for Industry and Commerce supported 19 out of the 32 measures related to corporate reforms in Guangdong in which 12 are pilot or in trial basis. The measures were based on the principle of getting easier access under stricter supervisions.
Foreign companies are delighted to see the efforts of the province to find ways of reducing the heavy burden their companies are facing while investmenting in the province.