Shanxi province’s first practice of “cluster registration", Shanxi Qichuang Business Service Co (Qichuang) is now home to over 60 small or micro-enterprises, involving businesses in technology, Internet, e-commerce, and animation, since it was established on April 3 this year.

on April 21, Premier Li Keqiang proposed relaxing rules on company registration, such as cluster registration, to encourage people to start their own businesses and to make innovation.

“Cluster registration has no legal definition, it is a new form developed from a model that allows several enterprises to share one address in industrial and commercial registration,” said Hu Ersheng, deputy head of Taiyuan’s administration of industry and commerce.

The registration address and premises of a company established through cluster registration are essentially different. Thus, this registration model can help to cut the operations costs, especially at the earliest stage.

“Without the cluster registration policy, I could hardly start my business,” said Wang Jikai, one of entrepreneurs in Qichuang.

Wang decided to start his own business as he graduated from university last year. “I tried to register a company myself, but it’s complicated and time consuming,”? Wang explained. Furthermore, fixed premises are required to register a company and cost at least 40,000-50,000 yuan ($6,444-8,055) to rent, which he could not afford as a new graduate.

Finally, Wang’s Internet technology company settled down in Qichuang. He rents two office desks in this business service company, costing about 10,000 yuan per year, including fees and utilities.

Moreover, training and experts are available in the company to help with business difficulties. Qichuang’s own clients and the companies settled in it can communicate and exchange resources, bringing them more opportunities.

“It’s not only to save time, all the other companies settled in Qichuang could be our potential clients,” Wang said.

Through cluster registration, many companies can share the same platform, which brings more exchange and develops into a cluster effect. Moreover, these can share legal, management and training services with relatively low prices.

Shanxi Qichuang Business Service Co is an example to promote micro and small businesses and bring them investment. It will popularize the cluster registration model to other cities in Shanxi and create more platforms for new businesses, according to the general-manager of Qichuang.