China Issues Regulations on Implementation of Registered Capital Management System in Company Law – Xinhua

BEIJING, July 1 (Xinhua) — China’s Premier Li Qiang on Monday signed a decree of the State Council, promulgating a set of regulations on the implementation of the share capital management system in company law.

As of Monday, these regulations clarify important arrangements for the transitional period involving the adjustment of the deadline for payment of subscribed capital by shareholders in existing companies.

For companies registered before June 30, 2024, the remaining deadline for shareholders to contribute to the registered capital will be adjusted to less than five years if the current deadline exceeds five years from July 1, 2027, in accordance with the regulations.

The regulations also stipulate that in the event of irregular activities concerning capital contributions and the share capital of the company, the company’s registration bodies undertake to timely adjust the company to its legal status after conducting a detailed examination of the enterprise and its shareholders.

The authorities will also improve supervisory and control measures regarding the acquisition of capital in companies, while optimizing the procedures for companies to adjust the deadline for taking up capital in accordance with the regulations. ■