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Beginning on Saturday, the right to the exclusive use of a trademark can be used as part of the registered capital when a domestic company applies for registration in Pudong New Area, officials of the Shanghai Industrial and Commercial Administrative Bureau announced Friday.

The new local policy will first be tried out in Pudong as one of the reforms the area will carry out to improve its commercial environment and government service.

"This is a way to show our respect to intellectual property," said Fang Huiping, bureau director. "Intellectuals and university graduates who have the talent but lack capital will be encouraged to launch their companies."

According to the policy, trademark right and other non-currency property, after being evaluated, can account for a maximum of 70 percent of the registered capital when a domestic limited liability company is registered in Pudong.

There are about 100,000 registered trademarks in Shanghai and their number is increasing by 20,000 every year. Of the total, 380 are the city's famous trademarks and 40 are the country's famous brands.

About a year ago, labor forces were also allowed to be included as part of the registered capital as a kind of non-currency property. So far, 37 companies have benefited from the policy and registered capital coming from labor forces totaled 30.94 million yuan (US$3.82 million).

Bureau officials also unveiled some other preferential policies yesterday to lower the commercial cost for companies in Pudong.

The Pudong New Area Industrial and Commercial Administrative Bureau will have the right to approve registration of domestic group enterprises, offices and research and development centers that aren't engaged in direct business operation of overseas enterprises and companies that have been cleared by the Ministry of Commerce and the Shanghai Foreign Investment Commission.

In the past, only the municipal bureau had the right to approve registration of such companies.

 

(Source:Shanghai Daily)