16 New Policies Announced to Help Enterprise Innovation

Shanghai government issues policies to encourage innovation and increase the channels for investing in foreign companies.

Shanghai Administration for Industry and Commerce announced 16 new policies to encourage enterprises to innovate and renovate on February 16, targeting modern service industries and emerging industries. Natural persons are allowed to invest in foreign enterprises, which is one of the 16 policies is to be carried out in the whole city and the some limitation on the registration of companies has been broken through.

“Qualified creative industry parks are allowed to use letters and numbers in their names” is mentioned in the second of the 16 policies, which is the very first time. Moreover, creative institutions are allowed to keep their names when they are restructured to enterprises.

“Letters and numbers were not allowed to be in the names of enterprises. 75 creative industry parks in Shanghai including the Bridge 8 and M50 are allowed to use letters and numbers in their names, which is for the unity of their brands and themselves,” says Chen Xuejun from Shanghai Administration for Industry and Commerce.

The sixth of the 16 policies insists “to make good use of foreign investment”, which is to encourage joint ventures with foreign investors of advanced technologies and mechanism. Qualified natural persons in China are allowed to invest in joint ventures too with a higher efficiency to approve their foreign advising projects, which is no longer than 10 business days.

“By the end of January, 54 natural persons in Pudong had invested in and founded foreign enterprises,” says Yu Peigang from Shanghai Administration for Industry and Commerce. “The policy that was applied in Pudong for natural persons to invest in foreign enterprises is to be carried out in the whole city.”

The 16 new policies bring a series of revolutions too―enterprises which need long preparation period not involving public security or human health are allowed to apply for licenses from Shanghai Administration for Industry and Commerce through written consent.

“Enterprises in preparation period are allowed to apply for licenses before purchasing equipments and recruiting, excluding the ones involving public security or entertainment places like pubs and clubs,” says Chen Xuejun. “Enterprises are not allowed to start business before they are issued licenses.” Chen Xuejin also points out that enterprise registration is to be simplified―a parent company with over 50 branches needs only one registration.