On December 29, 2023, the 7th meeting of the Standing Committee of the 14th National People’s Congress voted to pass the newly revised Company Law, in which Article 47 clearly stipulates that the subscribed capital of all shareholders shall be fully paid within 5 years from the date of establishment of the company. Effective from July 1, 2024.

【Share Transfer 】 【 Capital Reduction 】 【 Cancellation 】

1. Enterprises that have been established for 5 years need to pay their registered capital in full during the transition period! Enterprises that have been established for less than 5 years need to change their articles of association during the transition period to change their subscription period to within 5 years since company established!
2. If the enterprise is unable to replenish its registered capital, it is necessary to arrange for a capital reduction as soon as possible. The capital reduction announcement takes 45 days, and it takes about one month for changes at Industry & commerce Bureau, etc.
3. Having multiple companies, who may deregister non-operating companies as soon as possible to avoid the peak period!

For companies that need to change their articles of association, prepare capital verification reports, reduce capital, or de-register the company, please contact us directly.