On July 1^st,2024, The State Council of China issued the regulation on registered capital under PRC Companies Law.

According to this new regulation, for companies registered and established before June 30, 2024, if the remaining subscribed capital period of a limited liability company exceeds 5 years from July 1, 2027, the remaining subscribed capital period shall be adjusted to within 5 years before June 30, 2027 and recorded in the company’s articles of association. Shareholders shall pay the subscribed capital in full within the adjusted subscribed capital period; the promoters of a joint-stock company shall pay the full amount of share money subscribed before June 30, 2027.

If a company fails to adjust the subscription period and registered capital in accordance with these regulations, the company registration authority shall order it to make corrections; if it fails to make corrections within the prescribed time limit, the company registration authority shall make a special mark in the National Enterprise Credit Information Publicity System and make it public to the society….

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