START-UPS in Shenzhen will be entitled to subsidies of up to 100,000 yuan (US$14,600) and bank loans of up to 100,000 yuan, the municipal labor and social security bureau told a press conference yesterday.
The government policy package is designed to create more jobs in the wake of the financial crisis, Guan Lingen, director general of the labor bureau, said yesterday.
The unemployed, veterans, the disabled, returned overseas students and college graduates who left school less than two years ago are all eligible for the benefits when they start up their own businesses here, according to the new policy.
Small businesses with less than 100,000 yuan in registered capital will receive a subsidy of up to 8,000 yuan per year for three years from the registration date.
People who start their own business for the first time could also be eligible for a 4,000 yuan subsidy after paying tax for one year.
The start-ups would be paid 1,000 yuan for each job created.
The government will pay three years’ social insurance for people who start their own businesses. If the business fails, the government will continue to pay their social insurance for one year, according to the policy.
The total amount of subsidies and awards for each start-up will not surpass 100,000 yuan.
At the same time, the Shenzhen branch of the central bank lifted the ceiling on the amount of loans to start-ups to 100,000 yuan from 30,000 yuan, the press conference was told.
Loans for start-up businesses had helped more than 700 start a business as of June this year, said Guan.
The start-ups are allowed to register their homes as offices, according to the new policy.
Helen Deng, Chen Wanxing