Key practical points:
• Directs governments to set up funds and budget lines to support SMEs.
• Encourages access to financing through loan guarantees and dedicated lending channels.
• Provides tax incentives and fee reductions for start-ups and small firms.
• Strengthens advisory, training, entrepreneurship and innovation services.
• Protects small firms against late payment of receivables by large companies and government bodies.
🏢 Company setup
Law on the Promotion of Small and Medium-sized Enterprises · Yalla China
中华人民共和国中小企业促进法 / Law on the Promotion of Small and Medium-sized Enterprises
Enacted: 2002-06-29 ✅ Effective: 2018-01-01
📝 Overview
A law aimed at supporting small and medium-sized enterprises through financial and tax facilities, financing and innovation services. It requires governments to create a fair competitive environment and to allocate support funds.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
If you start a small business in China, this law opens doors to tax incentives, subsidised financing and protection against late payments. Ask the local industry authority about support programmes available for your sector. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026