New Company Law Executed on 1st March 2014
2014-February-28 Source: Newsgd.com
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The twelfth Standing Committee of the National People’s Congress examined and approved the draft amendment of Company Law, which will be executed on 1st March, 2014. The new Company Law has amended twelve articles, mainly covering the institution of registered capital, the process of registration and its required documents. General speaking, the new law reduces the conditions of establishing a company, which may encourage increasing number of people to start their own business.

Among all amended articles, the most extraordinary one is the cancellation of the requirement of minimum registered capital, except for particular types of companies. In other words, it is no longer compulsory to have RMB30, 000, RMB 100,000 or RMB 5,000,000 to establish a Limited Liability Company, a Solely Liability Company, or an Incorporated Company hereinafter. Furthermore, there is no limited percentage for initial paid-capital contributed by the shareholders, and no time limit for fully paid-up capital. In respect of registration, the amount of subscripted capital and paid-up capital are not required for registration; the capital verification report is not required to submit except for otherwise provided for.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

Editor: Olivia
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