Pillsbury Winthrop Shaw Pittman

Amendments to PRC foreign invested enterprise laws

By Woon-Wah Siu, Julian Zou and Eric Zhang

Following the new amendments to the PRC Company Law, China has published a series of conforming amendments to certain existing regulations governing foreign invested entities (FIEs) in China to reflect the reform introduced by the Company Law amendments. The conforming amendments include changes to the Wholly Foreign Owned Enterprise Law and to sino-foreign joint venture laws. It is encouraging to see the Chinese government adopting rule amendments to make the treatment of domestic companies and FIEs more consistent. It nevertheless remains uncertain to what extent liberalising reform of the legal regime governing foreign investment in China will continue.

The recent Company Law amendments include the following major changes to the prior company registration and administration system, specifically: elimination of the minimum registered capital requirement; elimination of the time requirement within which shareholders must make capital contribution; and elimination of the requirement that cash contribution to a company’s registered capital must be no less than 30 per cent…

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