Xiamen has recently issued a set of implementing opinions on promoting the swift and healthy development of the service sector in the city. Under the opinions, 30 policy measures supporting the development of the service sector have been introduced, including full-scale relaxation of the criteria for the registration of service enterprises. From now on, the minimum capital required to register a service enterprise in Xiamen is only Rmb30,000.

It is understood that the implementing opinions aim at lowering the entry threshold to the services market. A total of 30 policy measures under six domains have been introduced. The six domains are: full-scale relaxation of the criteria for the registration of service enterprises; support for modern service industry, promoting the development of traditional service industry; introducing innovative service mechanisms for Taiwan companies and foreign companies; encouraging the development of rural service industry; implementing product branding strategy in the service sector; and creating a fair and credible market environment for the service industry.

According to this document, Xiamen has relaxed the criteria for the registration of service enterprises. With the exception of enterprises which are governed by specific laws and regulations or State Council rules, the minimum registered capital for service enterprises with legal person status is only Rmb30,000. Besides, sole proprietorship, partnership and individually-owned business are all allowed to be established to engage in services. As for enterprises without legal persion status, the investors concerned are free to disclose the amount of capital contribution.

The document has also relaxed the qualifications of investors in service enterprises. Entities such as partially funded public corporations, social corporations, private non-enterprise units, village committees, neighbourhood committees, higher education institutes and scientific research institutes which are not explicitly prohibited by law to operate business and run enterprises are now qualified to act as shareholders.

Moreover, the implementing opinions contain many other policies: cultural or sports activities not specifically required by laws, administrative rules and State Council decisions to obtain prior approval can now be registered directly with the competent authorities; business operators running more than two branch establishments may in their enterprise application procedure use "chain operation" to describe their industry category and business scope in their enterprise name; real estate sales offices are exempted from business licence application; and in principle, enterprises with paid-up capital of over Rmb10 million may register as guarantee companies.