Introduction: In recent years, in order to support college students' entrepreneurship, governments at all levels have introduced many preferential policies, covering many aspects such as financing, opening a business, taxation, entrepreneurial training, and entrepreneurial guidance. College graduates in Shanghai can enjoy four preferential policies. According to relevant regulations of the state and the Shanghai municipal government, recent university graduates in the Shanghai area who start businesses can enjoy four preferential policies: free risk assessment, free policy training, free loan guarantees, and partial tax exemptions. Specifically, these include:
College graduates (including junior college, undergraduate, and postgraduate students) engaged in individual operations are exempt from individual business registration fees, individual business management fees, and economic contract model text production fees for one year from the date of approval. In addition, if they establish an irregular enterprise, they only need to register with the street office in their district or county to be exempt from taxes for three years.
Self-employed college students applying for business start-up loan guarantees from banks can receive a maximum guarantee amount of 70,000 yuan and enjoy loan interest subsidies.
Shanghai has established a special entrepreneurial education and training center for recent college graduates, providing free project risk assessment and guidance to help college students better grasp market opportunities.
The New Company Law is beneficial to entrepreneurs
The implementation of the new Company Law has boosted confidence among many individual industrial and commercial households in investing in setting up companies. In the future, after an individual registers a company, they will only bear limited liability, meaning that they will only bear limited liability for the company's debts according to the amount of capital they contribute to the company.
The new Company Law also allows newly established companies to pay up their contributions in installments according to the prescribed ratio. Specifically, the initial contribution made by all shareholders of a company shall not be less than 20% of the registered capital and shall not be less than the statutory minimum limit of registered capital. The remaining part shall be paid up by the shareholders within two years from the date of establishment of the company; among which, investment companies may pay up within five years. For newly established enterprises, this gradual entry of funds can reduce the cost of fund usage and improve the efficiency of fund usage. Moreover, it can effectively prevent false capital injection and withdrawal of funds after registration and other non-standard behaviors.
Venture capital investments can obtain high tax deductions
On February 15, 2007, the Ministry of Finance and the State Administration jointly issued the "Notice on Relevant Tax Policies to Promote the Development of Venture Capital Enterprises". Venture capital enterprises that have completed the filing procedures in accordance with the "Management Measures for Venture Capital Enterprises" and whose investment operations have been verified by the filing management department as compliant, such as "Limited Liability Venture Capital Companies" and "Joint Stock Venture Capital Companies", if they invest in unlisted small and medium-sized high-tech enterprises for more than two years (including two years) through equity investment, they may deduct 70% of their investment in small and medium-sized high-tech enterprises from the taxable income of the venture capital enterprise. The taxable income deduction calculated at 70% of the investment can be carried forward and deducted annually in subsequent tax years if it is insufficient to be deducted in the current year. Since other income tax matters related to the equity investment business of venture capital enterprises can be executed according to the relevant provisions of the "Notice on Several Income Tax Issues Regarding Enterprise Equity Investment Business" (Guoshui Fa [2000] No. 118) issued by the State Administration, the actual taxable income available for deduction by venture capital enterprises is net income after deducting losses and management costs. Source: http://www.9icy.com