Since the COVID-19 pandemic, many companies have closed down. But in Chongqing, the number of market participants rises. Data provided by the Chongqing Municipal Market Supervision Bureau shows that from January to May this year, the city established a total of 171,500 new market entities of all kinds , an increase of 7.36% year-on-year.
In particular, in May, the city registered 50,600 new market participant, an increase of 50.18% year-on-year. Among them, 14,600 enterprises, an increase of 53.66% year-on-year; 35,700 individual business households, up 49.3 per cent; 252 farmers' cooperatives, an increase of 1.61 per cent over the same period last year.
Chongqing’s measures to ensure the corporate capital chains
During the pandemic, the key issue for the survival of enterprises was funding. To ensure the continuity of the financial chain, Chongqing took approaches from two aspects: first, it reduced the burden on enterprises by cutting costs to improve their viability.
The second is the implementation of credit extension, to avoid enterprises becoming overloaded by debt. In terms of reducing the burden, the introduction of the policies involves reducing production and operating costs for enterprises, including the reduction or waiver of social security premiums, reducing energy and water costs, reducing the threshold for new projects.
Preliminary estimates for hundreds of thousands of enterprises in Chongqing, a total of about 13.3 billion Renminbi of social insurance premiums will be reduced, reduce corporate energy and water costs about 1.45 billion Renminbi, will also get up to 1.6 billion Renminbi to stabilise subsidies, the resulting in the stabilisation of about 700,000 jobs.
To reduce the burden on companies, the finance ministry has offered real money. Chongqing has focused on the "reduction, deduction, supplement and reprieve" of corporate taxes, providing financial subsidies to agriculture, logistics, outsourcing and other industries, involving as many as 15 policy provisions, including a reduction in the value-added tax rate, adjustment of taxes for individual households and tax reductions. Preliminary estimates suggest that the move will ease the pressure on corporate tax payments by nearly 1 billion Renminbi.
Credit extension, in mid-April, Chongqing banking and financial institutions to the city's enterprises to implement the loan balance involved in the deferment of capital repayments. A total of 135.066 billion Renminbi has been spent, benefiting 14,600 individual households and 14,900 enterprises.
In addition, Chongqing facilitated market participation to the fullest extent permitted by law and policy, avoiding "sudden deaths" caused by objective reasons as a result of the pandemic's impact. As an example of inclusive and prudent supervision, Chongqing has adopted administrative reminders, guidance and cautions, rather than simple penalties, for minor violations that have not caused actual harm. In another example, relevant declarations that are delayed due to the pandemic can be extended.
Chongqing’s preferential policies to save companies
Many measures to ensure the survival of enterprises, but the slow market recovery coupled with rigid operating expenses, barely surviving the enterprise is like a boat fighting against the current. In order to save companies, Chongqing has introduced a series of preferential policies. Financial support, including guaranteeing credit, reducing loan interest rates, loan subsidies, and rural micro loans. Preliminary estimates, for the pandemic prevention and control of key enterprises, agriculture-related micro loans with low interest worth 25 billion Renminbi, for the pandemic-affected micro and small enterprises loan stock extension renewal of 100 billion Renminbi. This is expected to save costs for enterprises of about 1.6 billion Renminbi.
Strengthen the reform of administrative services to stimulate entrepreneurial vitality
While doing everything possible to retain the stock of market participants, Chongqing has also stepped up its efforts to reform in administration and further promoted registration facilitation. The business environment has been continuously optimised to stimulate entrepreneurial energy and increase the number of market participants.
The simpler the procedures, the more conducive to the growth of market participants. May 27, the municipal government office released related regulations. It is worth mentioning that this document requires the speeding up of the formulation of the Chongqing Regulations on Optimising the Business Environment, which will be amended or abolished in a timely manner. Also, this document requires speeding up the formulation of Chongqing's regulations on optimising the business environment, promptly revising or abolishing the regulations that lag behind the reform.
The efficiency of business start-ups is among the highest in the country, stemming from three registration facilitation innovations introduced in Chongqing - firstly, "one submission" of documents. Integrate information related to business license processing, seal engraving, invoice application, employee social security registration, etc., into one set. The collection form, the implementation of "a set of materials, a collection, multiple reuse"; followed by online "one web", that is, in Chongqing Municipal Government Affairs The "one online Platform" for setting up a business online will include registration of business establishment, seal engraving, application for invoices, employment and social security registration, etc. The third is the offline "one-window", which means that all the administrative and administrative procedures in the districts and counties will be carried out under the "one-web" platform. The service center set up a comprehensive window to start up businesses, to achieve "one window to accept, one window to send".
(Source: Chongqing Daily)