China Revised Company Law Effective from July 2024
The revised Company Law of the People's Republic of China (2023 edition) was officially endorsed during the seventh session of the Standing Committee of the 14th National People's Congress, with a promulgation date of January 2, 2024. The enactment becomes effective from July 1, 2024, marking a significant development in corporate legislation.
Comprising 15 chapters, the updated Company Law addresses key aspects such as company registration, the establishment and organizational structure of limited liability companies, the transfer of equity in limited liability companies, and the organizational structure of joint-stock limited companies. Noteworthy enhancements include the refinement of the subscription and registration system for limited liability companies, emphasizing that shareholders must fully pay the subscribed capital within five years from the company's establishment date, as stipulated in the company's articles of association.
For companies established before the implementation of the revised Company Law, any extension beyond the statutory period for capital contributions will prompt adjustments to align with the statutory period, unless specified otherwise by laws, administrative regulations, or other provisions of the State Council. In cases where the payment deadline and amount of capital contributions deviate significantly from the norm, the company registration authority will request necessary adjustments in adherence to the law.
Source: