July 2024 - Regulations of the Registered Capital Management System are implemented
To strengthen the management of registered capital registration of companies, standardize shareholders' lawful performance of capital contribution obligations, the State Council formulated related regulation in accordance with the Company Law of the People's Republic of China, which effected on 1 July 2024.
We summarize down below the main measures that may have an impact on your operations.
We summarize down below the main measures that may have an impact on your operations.
When the remaining capital needs to be contributed?
For a company registered before 30 June 2024:
- if the remaining capital contribution period exceeds five years as from July 1, 2027,
- shall adjust the remaining capital contribution period to five years by June 30, 2027
- shall contribute the remaining capital following the adjusted timeline
- if the remaining capital contribution period is not exceeding five years as from July 1, 2027,
- no need to adjust the capital contribution period
- shall contribute the remaining capital following the timeline listed in the Article of Association
For a company registered after 30 June 2024:
- shall contribute the fully capital within five years from the incorporation date
How to do if a Company would adjust the capital contribution?
- shall update the adjusted information in the Article of Association
- shall disclose the adjusted information through the National Enterprise Credit Information Publicity System within 20 working days from the date of relevant information adjusted
The effective date of this regulation is 1 July 2024.
We remain available should you have any questions. Please do not hesitate to reach out to your Forvis Mazar point of contact.
Contact
Joan WU Qiong Partner, Accounting & Outsourcing Solutions - Guangzhou Tianhe District
