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InterpretationoftheRegulationsontheRegistrationofMarketEntities2021-08-2516:35

July27,2021,theStateCouncilPremierLiKeqiangsignedanorderoftheStateCounciltopromulgatethe"RegulationsontheRegistrationandAdministrationofMarketEntitiesofthePeople'sRepublicofChina",whichwillcomeintoforceonMarch1,2022.The"Regulations"has6chaptersand55articles.Themaincontentsinclude:First,clarifytheregistrationauthorityandworkrequirements.ThemarketsupervisionandmanagementdepartmentoftheStateCouncilisinchargeoftheregistrationandmanagementofmarketentitiesnationwide....Details

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    Nature

    Marketentitiesareprofitable,Thisisitsmostessentialandimportantfeature.Marketentitiesalsohaveindependence,whichismainlymanifestedintheindependenceofpropertyrightsandtheindependenceofmanagementrights.Flexibility.Marketentitiesadjusttheirbusinessstrategiesandtacticsinaccordancewithmarketlaws,whicharetheirbasicfunctionsinthemarket.Inaddition,marketentitiesalsohavethecharacteristicsofmutualrelevance,equality,andlegitimacy.

    Investor

    Investorsrefertogeneralprofitableinvestments.Theinvestor’squalificationsmustmeetthefollowingrequirements:

    1)Thedirectionorfieldofinvestment.Insomeareas,non-statecapitalcannotenter,soinvestorsarenotestablishedhere.Insomefields,nationallegislationrestrictstheentryofstate-ownedcapitalinordertoencouragethedevelopmentofrelatedfields.

    2)Theamountoramountofinvestment.Forexample:Article81ofthe"CompanyLaw":"Ifacompanylimitedbysharesisestablishedbymeansofsponsorship,theregisteredcapitalshallbethetotalamountofsharecapitalsubscribedbyallthepromotersregisteredwiththecompanyregistrationauthority.Theinitialcapitalcontributionofallthepromotersofthecompanyshallnotbelow20%oftheregisteredcapital,theremainingpartshallbepaidinfullbythepromoterswithintwoyearsfromthedateofestablishmentofthecompany;amongthem,theinvestmentcompanycanpayinfullwithinfiveyears.Beforethefullpayment,sharescannotberaisedfromothers.LimitedsharesWhereacompanyisestablishedbywayoffundraising,theregisteredcapitalshallbethetotalamountofpaid-insharecapitalregisteredwiththecompanyregistrationauthority.TheminimumregisteredcapitalofacompanylimitedbysharesisRMB5million.Theminimumlimitoftheregisteredcapitalofacompanylimitedbylawissetbylawsandadministrativeregulations.Forhigherregulations,followtheirregulations."

    3)Theformofcapitalcontribution.Forexample:Article27ofthe"CompanyLaw":"Shareholderscanmakecapitalcontributionsincurrency,orusenon-monetarypropertiessuchasphysicalobjects,intellectualpropertyrights,landuserights,etc.thatcanbevaluedincurrencyandcanbetransferredinaccordancewiththelaw;however,thelaw,Theadministrativeregulationsstipulatethatthepropertycannotbeusedascapitalcontribution."

    Inaddition,therearealsoinvestmentmethodsandotherregulations.

    Operators

    Operatorsrefertolegalpersons,otherorganizationsandindividualsengagedintheproductionandmanagementofcommoditiesortheprovisionofpaidservices.

    Thequalificationsofanoperatorgenerallyhavethefollowingaspects:First,theabilityofwill.Second,thescopeofbusiness.Third,propertycapacity.Fourth,technicalcapabilities.Inaddition,thisarticlebelievesthatoperatorsshouldalsohavecredibility,thatis,theycanprovidethequalificationstoparticipateinmarketactivities.

    Workers

    Workersrefertocitizenswhoarecapableofworkingwithinthelegalworkingagerange.

    Consumers

    Consumersrefertopeoplewhopurchasegoodsorreceiveservicesfornon-profitpurposes.

    Consumersarepeoplewhobuygoodsorreceiveservices.Thatistosay,consumersmaybeindividualswhopurchasegoodsinperson,orpeoplewhouseandconsumegoodspurchasedbyothers;theymayalsobethosewhoreceiveservicesinrelevantservicecontracts(suchashotels,transportation,hotels,food,labor,etc.).Apartytothisservice)mayalsobeanon-contractualpartyreceivingtheservice.Butitmustbepointedoutthatconsumersarenotcompletelyequivalenttobuyers.

    Whenconsumersbuygoodsorreceiveservices,theyarenotforprofit.Consumersbuyinggoodsorreceivingservicesarenotforthepurposeoftransferringthesegoodstoothersforprofit.Consumersbuyingandusinggoodsorreceivingservicesaremainlyusedforpersonalandfamilyconsumption.

    Enterprises

    Enterprisesarethemostimportantmarketentities

    Beneficiaries

    Thebeneficiariesarethroughinvestment,management,labor,consumption,Andcorporatedividendstogetdueremuneration.

    Position

    Themarketeconomyisamainstayeconomy,butthemainbodyhereincludesboththegovernmentandtheenterprise(becausetheindividualisembracedbyandembodiedbytheenterprise,theenterpriseisthedifferenceSincethegovernmentisthemostimportantmarketentity,individualsarealsoenterpriseshere).Therefore,thereisanimportantquestionhere,thatis,amongmarketentities,whethertheeconomicmanagemententityisbasedonthemarketentity.

    Theeconomicmanagementsubjectstandardorthemarketsubjectstandardreflectsthedifferentguidingideologiesforthechoiceofeconomicsystem.

    Themainbodyofeconomicmanagementmeans:Themainbodyofeconomicmanagementisinthedecision-makingcenterandcommandcenteroftheentiresocialeconomy.Thegovernmentisthemostimportantconfiguratorofsocialresources,andthegovernmentisthecommanderoftheenterprise.Themainbodyofthemarketisinasecondaryorevendominatedposition,withlittleornoautonomy,butafaithfulexecutorofgovernmentintentionsandastrictexecutorofgovernmentpolicies.Theeconomicsystemselectedwiththesubjectofeconomicmanagementastheguidingideologyistheeconomicsystemgovernedbythegovernment.

    Inhistory,theeconomicsystemgovernedbythegovernmenthasindeedplayedahugehistoricalrole.Forexample,intheperiodofprimitiveaccumulationofcapital,ifitisnotgovernment-basedandnotgovernedbythegovernment,thenitcannotaccumulateprimitivecapitalsoquicklyandsmoothly.,Andpromotethetransformationofthefeudalmodeofproductiontothecapitalistmodeofproduction,andthetrueestablishmentofthecapitalistmodeofproduction.Ifthegovernmentdoesnotinducedevelopment,theremayneverbedevelopmentthere.

    Themarketsubjectstandardmeans:Themarketsubjectisatthecenterofthesocialeconomy.Themarketsubjectisthefundamentaldrivingforceforsocialandeconomicdevelopment.Itisthemainallocatorofsocialresources.Itisnotthatthemarketsubjectissubordinatetothegovernmentbutthatthemarketsubjectisindependentofthegovernment.Itisnotthecentralizationofpowerbutthedecentralizationofthemarketsubject.Itisnotthemarketsubjectthatobeysthegovernmentbutthegovernmentservesthemarketsubject.Themostimportantandappropriatesubjectoftheeconomy.

    Ofcourse,beingmarket-orientedisnotwithoutgovernment,butitrequiresgovernmentinterventiontobereducedtothemostappropriatelimit,andthemostappropriatelimitofgovernmentinterventionmustalsobecarriedoutappropriatelyinaccordancewiththelaw,justlikeacaringforplantsOfgardenerscreatethemostsuitableconditionsforplantgrowth,andcreateafavorableexternalenvironmentforthedevelopmentofmarketentities.Thegovernmentmanagesthemainbodyofthemarket,whetherthemainbodyofthemarketbecomesthemainbodyofthemarketoritsownappendageisthefundamentalandspecificcriteriontomeasurethesuccessorfailureofgovernmentmanagement.Toexcludemarketentitiesasthestandard,thegovernmentistoreplacetheblister.Theeconomicsystemselectedwiththemarketsubjectstandardastheguidingideologyisaneconomicsystemgovernedbythemarket,thatis,amarketeconomicsystem.Onlybytakingthemarketasthemainbodycanwemakethebestuseofallkindsofknowledgescatteredinthesociety,canmobilizetheinitiative,enthusiasmandcreativityofthemostpeopleinthemostextensiveway,makefulluseofthemarket,andcarryoutfreedommosteffectively.Competitionisthemosteffectivewaytorestrainillegalgovernmentintervention,andtomostfundamentallyestablishthemarketsubjectstatusofthemarketsubject.

    Practicehasprovedthatonlybytakingthemarketsubjectasthebase,allforthemarketsubject,andallrelyingonthemarketsubject,canthesocialeconomydevelop.Astrongmarketsubjectisastrongeconomyandastrongcountry.ItisinthissensethatformerUSPresidentCoolidgeclearlystated:"ThebusinessoftheUnitedStatesisthesubjectofthemarket."Inthisregard,wecangoontosaythatChina'sbusinessisalsoamarket.Themainbody,oreventosay,allthedevelopmentofthesocialeconomyisamarketmainbody.

    Features

    One:Economical.Themainbodyofthemarketshouldbeabasicsocialeconomicunitwithacertainamountofproductionmaterialsandlabor,engagedincommoditybusinessactivities,andindependentaccounting.

    Two:Independence.Marketentitiesshouldhaveindependenteconomicinterestsandparticipateinmarketeconomicactivitiesindependently.

    Three:Equality.Inthemarket,anyeconomicorganizationalsoparticipatesinsocialandeconomicactivitieswithanequalstatus,andparticipatesinmarketcompetitionunderthesameconditions.Noorganizationorindividualshouldhaveanyprivilegesinengagingincommodityexchangeactivities.

    RegistrationManagement

    OnApril14,2021,PremierLiKeqiangpresidedovertheStateCouncilexecutivemeetingandpassedthe"RegulationsofthePeople’sRepublicofMarketplayersandthepromotionoffaircompetitionprovidelegalguarantees.(Fordetails,see:)

    AnnouncementofRegulations

    InAugust2021,PremierLiKeqiangsignedtheStateCouncilOrdertopromulgatethe"RegulationsontheRegistrationandManagementofMarketEntitiesofthePeople'sRepublicofChina"fromMarch2022Itwillbeimplementedonthe1st.

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