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Incentives offered for migrant workers to start businesses

Updated: Jun 21,2015 2:50 PM

Migrant workers, college graduates and demobilized soldiers are being encouraged to start businesses in their hometowns by the State Council.

A guideline issued on June 21 aims to boost employment, increase residents’ income and promote coordinated development between industry and agriculture, and between urban and rural areas.

Measures covered include:

* Encouraging migrant workers who have already started a successful business in developed areas to relaunch businesses in their hometowns.

* Urging experienced migrant workers to upgrade small businesses to larger ones with competitive edges.

* Persuading migrant workers familiar with information technology and new business models to link supplies and demands for certain goods between their hometowns and where they work.

* Encouraging migrant workers to return to their hometowns to open agriculture related companies and organizations.

* Urging migrant workers to establish new agricultural businesses including farmers’ cooperatives, family-run farms, forest farms and agricultural factories.

* Simplify registration for business venues and streamline approval procedures for investment projects.

* Reduce or exempt tax and fees such as enterprise income tax, added value tax and sales tax for migrant workers starting businesses.

* Persuading venture capital funds and private capital to participate in migrant workers’ businesses. Exploring the joint issue of debt by micro-, small- and medium-sized enterprises in regions where a large number of people return to start businesses and encourage banks to step up lending.

* Develop business parks and offer monetary support in the form of investment subsidies and subsidies for loan interest.

* Strengthen employment training and incorporate returned migrant workers into local public service systems of social security, housing, education and medical care.