[4] New policy in free trade zone: Enterprises can register at law firms

The Shanghai Pudong New Area Market Supervision Administration announced a series of market access facilitation measures on the 13th. Among them, it proposed to take the lead in piloting reforms in the registration of law firm premises, allowing law firms within the Shanghai Free Trade Zone to register their office spaces as business premises for enterprises. At the same time, a "simplified deregistration" system will be implemented to relieve more entrepreneurs of the burden of "difficult exit."

    In March this year, Shanghai released measures for managing enterprise domicile registration, reducing requirements from multiple perspectives to support innovation and entrepreneurship. As a pioneer reform zone, Pudong has already launched pilot centralized registration sites in development areas such as Lujiazui, Zhangjiang, and Jinqiao. As of the end of July, six centralized registration sites were operational, registering 310 enterprises.

    Many small and micro enterprises reported that after the pilot launch, commercial properties, industrial plants, and enterprise warehouses can all serve as centralized registration sites, and a single building can register hundreds of enterprises. This not only effectively reduces rental costs but also allows enterprises to enjoy cost-effective business services.

    Building on the implementation measures, Pudong has also introduced reform "optional actions" — allowing law firms within the Shanghai Free Trade Zone to register their office premises as the registered address for enterprises. Chen Yanfeng, Director of the Pudong New Area Market Supervision Administration, stated that this reform draws on the mature experience of the Hong Kong Special Administrative Region, where law firms serve as the address for corporate communications and legal document delivery, further aligning Pudong with international prevailing practices. "Many enterprises, especially foreign companies entering China, often entrust various affairs to law firms. Using a law firm as the registered address is a natural fit for businesses. As this reform is unprecedented in the mainland, it is currently being piloted within the free trade zone first."

    A representative from Shanghai AllBright Law Offices stated: "Following the introduction of the new policy, in addition to resolving the challenges of enterprise domicile registration, the law firm can also provide full-process tracking services such as registration agency, entrepreneurial guidance, business secretarial support, and legal assistance, promoting lawful and standardized business operations for enterprises."

    While lowering the entry threshold, Pudong, as one of the four national pilot zones for the "simplified deregistration" reform, is also focusing on broadening the "exit" channels for enterprises. The opinion proposes that Pudong will implement simplified deregistration procedures for limited companies and partnerships that have been established for less than three years, have not started operations or have no debts or claims, and have not been listed in the business operation exception list. That is, relying on the enterprise credit information publicity system, there is no need for liquidation group liquidation or filing. The written materials submitted by applicant enterprises will be reduced from 6 copies to 3 copies, and the publicity period will be shortened from the current 45 days to 10 working days, greatly improving work efficiency. At present, two enterprises in Pudong have completed the simplified deregistration procedures. (From Xinhua News Agency)