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State Council guidelines on supporting small enterprises

Updated: Nov 20,2014 11:59 PM

The State Council released 10 guidelines on Nov 20 to boost smaller businesses, including privately owned companies, in a move to spur economic growth and job creation.

In the statement, the State Council said reform of the industrial and commercial registration system has greatly enhanced market vitality as well as enthusiasm and willingness among the general public to start small businesses.

However, it said, as these businesses still face difficulties during their development, the government has decided to put forward the following measures.

--To make sure special funding was fully allocated and to provide greater local funding.

--Ensure preferential tax reduction policies already announced are implemented, and release new supportive policies. Tariffs on certain items, such as advanced equipment that could not be purchased domestically, will be eliminated for businesses which have invested in projects that the government supports.

--To increase special support funding for start-up sites, including innovation parks and science and technology incubators. Larger enterprises are encouraged to help smaller businesses in the same industry chain, thereby achieving economies of scale and boosting efficiency.

--Social insurance subsidies will be offered to businesses which employ people who have had difficulty finding employment. Businesses that fail to reach an assigned proportion of disabled people in the workforce, but whose total number of employees is not more than 20, will be exempt from employment security funds for the disabled for three years from registration.

--Governments at all levels will be encouraged to set up venture capital funds to support small- and micro-sized businesses. Apart from venture capital funds, angel and seed funds will be also encouraged to invest in such companies. Enterprises that meet relevant requirements can benefit from supportive policies on small loans.

--The financing channels available will be improved and charges will be kept reasonable. Related institutions and enterprises that provide financial support for these companies will be rewarded and offered compensation.

--Large banks will be encouraged to set up financial institutions, which will offer a range of services to small- and micro-sized enterprises. Small- and medium-sized banks will be encouraged to link their strategic transitions with improving services for small companies.

Banks and financial institutions will be able to draw up independent credit plans as long as they remain commercially sustainable and keep risks under control. Private capital, under strict supervision, will be encouraged to play a role in setting up small- and medium-sized banks.

--Public Employment Service Centers, at city or county level, will be asked to keep archives of graduates who choose to work in the small businesses without charging fees.

--An information sharing mechanism that supports the development of these businesses will be established. Based on the public system of company credit information, a small- and micro-sized enterprise directory will be set up, with companies that are willing to be listed, while information regarding various favorable polices and the names of companies that enjoy preferential measures will be available. The unified credit information platform will also collect information concerning registration, administrative licenses, tax payments and social security payments, in order to promote information exchange and facilitate the establishment of a credit system for these companies.

This will facilitate better services from the government and professional agencies, such as banks, by sharing information through modern technology such as big data and cloud computing. A certain proportion of sample companies will be selected for follow-up monitoring and analysis.

--Public service platforms will be established for these companies to offer free services such as management guidance, skill training courses and consultation to small companies.

The State Council asked all governments and departments to make sure that preferential policies are put into practice as soon as possible and implement new measures at proper time.