The Guangdong provincial capital government has further lowered its threshold for business registration starting on New Year's Day.

Gong Erzhen, deputy mayor of Guangzhou, said no initial registered capital is required when business people apply for licenses to establish new companies in the city beginning on Wednesday.

Previously, initial registered capital was a must when locals applied to open new companies in the southern metropolis.

"Business people can now register their capital with the administration department of industry and commerce after their new companies start business," Gong told a news conference in Guangzhou on Thursday.

"Meanwhile the administration of industry and commerce can grant operating licenses to applicants to start their business before they have completed the procedures for fire protection, public health, environment protection and culture, except for granting licenses for banking, finance, karaoke bars, cinemas and other businesses that still have to get the green light from the relevant government departments," Gong said.

The industrial and commercial administration's approval procedures for new companies' operating licenses have been shortened from 15 working days to only three days, with the fastest time being only a day, she added.

The new company registration system, which has been piloted in the city's Nansha district and Guangzhou Development Zone starting in September 2013, has been proven to play an important role in helping local businesspeople reduce their operating costs and providing a better investment and business environment, according to Gong.

By Dec 29, a total of 3,146 new companies, with registered capital valued at 14.18 billion yuan ($2.31 billion) had been established in the pilot districts. That was an increase of 118.37 percent in Nansha and 288.52 percent in the Guangzhou Development Zone.