China issues regulations on implementing registered capital management system of Company Law

BEIJING, July 1 (Xinhua) -- Chinese Premier Li Qiang signed a decree of the State Council, unveiling a set of regulations on implementing the registered capital management system of Company Law on Monday.

Effective Monday, the regulations clarify relevant arrangements during the transitional period of adjusting the time limit for shareholders to pay in their subscribed capital at existing companies.

For companies registered before June 30, 2024, the remaining period for their shareholders to pay registered capital contributions shall be adjusted to shorter than five years if the existing time limit exceeds five years from July 1, 2027, according to the regulations.

The regulations also stipulate that if there are abnormal activities in a company's capital contributions and registered capital, company registration authorities shall require the timely adjustment of the company according to law after conducting thorough investigations on the enterprise and its shareholders.

The authorities will also refine supervision and inspection measures on companies' capital subscriptions while optimizing procedures for companies to adjust the time limit of capital subscriptions according to the regulations.