Published by ChinaMNC · Huichun

Jilin Province Issues Measures to Support Comprehensive Straw Utilization: What Foreign Founders Need to Know

Jilin Provincial Government has released new measures supporting straw utilization, including subsidies and project opportunities. This article summarizes the key points relevant to foreign founders considering company registration and operations in China.

Practical Takeaways for Foreign Founders

The Jilin Provincial Government has issued a notice outlining measures to support the comprehensive utilization of straw. While the document is primarily aimed at domestic agricultural and industrial activities, foreign founders can identify potential business opportunities and compliance considerations. The measures include subsidies for straw collection, processing, and various utilization methods, as well as support for building collection and storage facilities. For foreign investors, these measures may signal areas where local government support is available, but they do not directly alter the company registration process. However, understanding these policies can help in planning investments in related sectors.

What the Measures Cover

The notice, issued by the General Office of the Jilin Provincial People's Government, sets out ten specific measures to promote straw utilization. These include:

• Designation of prohibited burning zones and controlled burning areas, with responsibilities assigned to environmental and agricultural departments.
• Subsidies for organic fertilizer production from straw, with a minimum subsidy of 150 yuan per mu for application on typical black soil areas.
• Support for conservation tillage with higher subsidies for straw coverage above 60%, and additional subsidies for specific tillage operations.
• Subsidies for straw return to fields in major grain-producing counties, including deep plowing and mixing operations.
• Support for straw collection and removal from fields, including mechanical and manual methods.
• Construction of straw collection, storage, and processing centers at county, township, and village levels, with support for projects with large straw consumption.
• Subsidies for straw feed utilization, including subsidies per ton for certain feed production and per cubic meter for storage pits.
• Subsidies for straw-based substrate utilization, such as for edible fungi and horticulture.
• Support for industrialization projects linked to poverty alleviation objectives.
• Encouragement of projects in green hydrogen, green methanol, biomass power generation, biodegradable materials, and other areas, with potential central budget investment support.

Implications for Company Registration and Operations

For foreign founders, the measures do not introduce new requirements for company registration. However, they highlight sectors where local government support and subsidies are available. If you are considering establishing a company in Jilin related to agriculture, renewable energy, or new materials, these measures could provide financial incentives and support for project development. It is important to note that the subsidies are targeted at specific activities and may require compliance with local regulations, such as the prohibition on burning straw in designated zones.

Entity Choice and Registration Steps

The notice does not specify any changes to the entity choice or registration steps for foreign investors. Standard procedures for foreign-invested enterprises (FIEs) apply, including choosing between a wholly foreign-owned enterprise (WFOE) or a joint venture, and completing registration with the local administration for market regulation. Foreign founders should follow the usual process: name pre-approval, submission of articles of association, capital contribution, and obtaining business license. Additional licenses may be required depending on the specific business scope, such as environmental permits for processing facilities.

Capital and Tax Considerations

The measures mention subsidies and funding support but do not alter capital requirements or tax policies for foreign-invested companies. Foreign founders should be aware that subsidies may be subject to tax treatment, and it is advisable to consult a tax advisor. The notice does not provide details on tax incentives for foreign investors; standard national and local tax policies apply.

Compliance and Licensing

Companies involved in straw collection, processing, or utilization must comply with environmental regulations, including the prohibition on burning in designated zones. The measures assign responsibilities to various provincial departments, indicating that permits and approvals may be required from environmental, agricultural, and energy authorities. Foreign founders should ensure they obtain necessary licenses, such as pollutant discharge permits, and adhere to safety management responsibilities, especially for projects involving green hydrogen, biomass, or chemical processing.

Business Opportunities

The measures support the development of projects in green hydrogen, green methanol, biomass power generation, biodegradable materials, environmentally friendly boards, carbon-based products, and polylactic acid. Foreign companies with expertise in these areas may find opportunities to partner with local entities or establish operations in Jilin. The construction of straw collection and processing centers also presents opportunities for equipment suppliers and service providers.

Next Steps for Foreign Founders

If you are interested in exploring opportunities in Jilin related to straw utilization, consider the following steps:

• Research local policies and identify specific subsidies applicable to your planned activities.
• Engage with local authorities to understand application procedures and eligibility criteria.
• Choose an appropriate entity structure for your China operations, keeping in mind capital and licensing requirements.
• Ensure compliance with environmental and safety regulations from the outset.

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535. Our team can provide guidance on entity setup, licensing, and compliance matters.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.