(By You Yunting) National People’s Congress, the China’s legislature, has authorized the State Administration of Industry and Commerce (the “SAIC”) to propose the revision draft of the Anti-unfair Competition Law which has been implemented for more than twenty years in China. Recently, Shanghai Administration for Industry and Commerce held a meeting in making suggestions upon business operators and administrative authorities for the revision. In the meeting, I delivered a speech with the following presentation.
1. The State Council has begun circulating the “Registered Capital Registration System Reform Plan”
On February 7th, 2014 the State Council issued the Registered Capital Registration System Reform Plan (the “Plan”) with the purpose of promoting the development and efficiency of business registration systems.
The Plan makes it clear that requirements for registered capital of companies applying to be incorporated will be lowered. However, minimum registered capital restrictions could remain applicable to companies in given industries subject to relevant laws, administrative rules and decisions made by the State Council. The new guidelines stipulate that the minimum registered capital restrictions of RMB 30,000 on limited companies, RMB 100,000 on solely- owned limited companies and RMB 5,000,000 on stock-limited companies will generally be lifted. Additionally, restrictions on the proportion of registered capital that is initially subscribed by all shareholders (or initiators) upon incorporation of a company as well as the proportion of registered capital subscribed in cash by all shareholders (or initiators) to the total registered capital of a company will be lifted. The duration of existence for a company with registered capital not fully paid by its shareholders (or initiators) will also no longer be limited.
According to Henan Daily, data released by the Administration of Industry and Commerce in Henan, a province in middle China, shows that the amount of trademark registration has been rapidly increasing and the conscious awareness on trademarks have been enhancing also, though it still falls behind the more developed areas. Henan is located in middle China, the province with the second largest population in the country, having residents of more than 9.3 million at the end of 2007.
By June, 2011,118,000 trademarks had been effectively registered in Henan, up from 58,000 by the end of 2007.