New China Company Law
New China Company Law officially came into effective on July 1st, 2024. For WFOE registered in China there are updated requirements regarding registered capital pay up as well as timeline.
The most important policy for invetors is registered capital pay up requirement. No matter how much registered capital you set at the very begining when regisrtation, it is required to pay up within five years since registration. For company registered before July 1st, 2024, there will be three more years grace period which needs to be paid up before June 30th, 2032.
Reduction Registered Capital
Reduction registered capital become a popular option for investors prefer not to pay up huge registered capital. Quite a lot invetors registered a high capital such as one to ten million RMB or ever more when they registered their China companies and planned to pay up capital gradually according to busienss expanding.
With new China company law effective, they have to adjust their registered capital into the amount they registered or to a mimium amount. This help invetors avoid penalties of registered capital un-paying.
Pay Up Rgistered Capital
Pay up registered capital can be arranged after registered capital reduced to the minimu amount or a certain amount. Companies registered before July 1st, 2024 can pay up the registered capital before June 30, 2032 according to latest company law.
The last step is to issue capital verification report after shareholder pay up registered capital into company capital bank account. For all processing it will take around half a year with all required documents well prepred.
Contact Us
For more details you are warmly welcome to visit us at our China office in Beijing, Shanghai, Guangzhou, Shenzhen, etc. or our HK office. Also can simply send us email at anitayao@citilinkia.com or call us by 86-13430931067 for more information.
Post time: Jul-04-2024