Tag Archives: Minimum Capital

CHANGES TO CHINA’S COMPANY LAW
Feb. to June 2014 China Bulletin

On March 1, dramatic amendments to the Company Law came into effect, eliminating minimum capital requirements and mandatory payment periods (e.g., an initial contribution of 20% with the remainder made within two years) for all companies, including foreign-invested enterprises (FIEs).  The shareholders now determine a company’s capital contributions according to operational needs.  Companies no longer must submit to an annual inspection but now only file an annual report (Annual Report Notice, English translation).  For many companies, the amendments also eliminate the requirement of a capital verification report to evidence cash contributions.  Certain requirements remain unchanged, however, Continue reading