China Watchers Welcomes News on Number of Business Registrations has Increased
China watchers in Washington is welcoming the news that a number of small businesses registrations in China has increased by around 50 percent. And according to a senior fellow at the Peterson Institute for International Economics, Nicholas Lardy it’s a positive sign. As Lardy attended a panel discussion at the Center for Strategic and International Studies referred to the comment made by Premier Li Keqiang during the conclusion of the National People’s Congress last March 15.
Lardy said that all minimum capital requirement to start a liability business in China have been eliminated and this gives entrepreneurs that ability to start a liability company more easily that in the past. It’s definitely a step forward although still not very clear that it would boost China’s entrepreneurship. The Legislation Law was enacted in 200 and is considered the foundation of China’s legal system that regulates on how national laws and government regulations and local laws to come into shape and from which organizations hold legislative power in the country. The revisions expanded legislative power from 49 cities in China to 288 nationwide, empowering the legislature to make local news.
The revised law underlines the principle of statutory taxation by singling out the provision and make it clear that a tax can be levied and tax rate be set only with the endorsement of the law. And of the existing 18 taxes only three which are the individual income tax, vehicle and vessel tax and corporate income tax are levied through legislation and the remaining taxes are imposed through formal or provisional regulations issued by the State Council.