The move will help improve the investment environment, intensify the stable economic upswing, and stimulate the vitality of social investment.

Predating the unveiling of reforms on the registered capital system, a 383 Plan for reform was submitted by the Development Research Center of the State Council to the Third Plenary Session of the 18th CPC Central Committee. The blueprint quickly stirred up heated debates.

Inclusive market economy

The plan aims to set up a vibrant, innovative, inclusive market economy protected by the rule of law. It listed a reform trinity—the market, government and corporations—eight key sectors and three packages for likely breakthroughs, and has thus been dubbed the 383 Plan.

The plan involves a succession of hot issues, many of which are also the difficulties confronted by China. Some policy adjustment measures are bold, decisive and inspiring.

The blueprint is closely associated with the upcoming Third Plenary Session of the 18th CPC Central Committee. It indicates a heavy focus on reforms this time round, reforms that will be pushed forward with much determination in more sectors, reminiscent of the landmark Third Plenary Session of the 11th CPC Central Committee held in late 1978.

Looking back at that plenary session, which raised the curtain on China's reform and opening up, the country moved forward carefully and cautiously, and mistakes, to some extent, were tolerated.

Today, things have changed. Reforms have to address deep-seated institutional loopholes and emerging challenges. Hence, there is little room for error.

Releasing the reform plan ahead of time indicates that the government is prepared to hear public opinion. In this way, measures that gain public support will be promoted, and those not favored will be put aside.

Naturally the 383 Plan cannot solve all the problems that hinder China's progress, and more reforms will follow. This year, the new Chinese leadership has unveiled seven reform policies, including reducing administrative intervention, expanding the pilot program of replacing business tax with a value-added tax, and interest rate liberalization. In the following days more in-depth measures and policies will be decided on to push China's reform and opening up even further.

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Five Measures to Reform Business Operation

First, the minimum registered capital requirement of 30,000 yuan ($4,900) to start a limited liability company will be removed, so will the 100,000 yuan ($16,410) requirement for an individual company and the 5 million yuan ($820,500) requirement for an incorporated company.

Second, the annual inspection of companies will be replaced with a reporting system that can be viewed online to increase the transparency of business operations.

Third, requirements for company registration address will be simplified.

Fourth, efforts will be made in advancing the building of an integrity system, and enterprises with duplicitous practices will be put on a "blacklist" that will be made publicly available.

Fifth, measures will be taken to reduce the costs of starting a company.

(Source: www.gov.cn)