BEIJING – Chinese Premier Li Keqiang on Tuesday called unveiled new measures to encourage people to start their own business.
Due to increasing pressure on employment this year, the government must introduce more proactive policies, said a statement released after an executive meeting of the State Council presided over by Premier Li.
Entrepreneurship and innovation is the way to make people rich and the country strong, the statement said, adding it is conducive to structural optimization of industries and enterprises.
Preferential tax policies will apply to enterprises that employ people who have been jobless for more than six months. College graduates and registered unemployed people who start individual proprietorship enterprises will also get tax breaks.
Social security subsidies to small- and micro- enterprises that employ fresh graduates will remain “for a long time”. The policy was expected to expire by the end of this year.
Registration policies have been loosed. More than one enterprises will be allowed to registered at the same address, and startups are encouraged to use low cost places such as abandoned factory buildings.
The government will raise the level of business loans for startups to 100,000 yuan (16,320 U.S. dollars) at as much as 3 percent below the base rate.
There will be policies to encourage migrant workers to start businesses, either back in the countryside or online.
Technical personnel in colleges and research institutes can choose to start their own businesses while remaining in their posts and may take a sabbatical of up to three years..
The government wants employment of poor families to increase, turning at least one family member into a wage earner.