MOFCOM loosens registered capital requirements for FIEs
By Jem Li, April Wang and Olivia Yang
On 17 June 2014, the Chinese Ministry of Commerce (MOFCOM) published the Notice of Improvements on Foreign Investment Examination Management, which introduces the capital subscription system into the registration of foreign invested enterprise (FIE) by eliminating the examination and approval of registered capital and capital contribution for most of FIEs.
Before the promulgation of the amended PRC Company Law, companies registered in China including FIEs are subject to the paid-in capital registration system, under which the registered capital must be higher than a certain minimum set forth by laws and regulations and must be paid up within a certain time period. Even though the registered capital can be paid by instalments, the law stipulates the minimum amount of the first instalment and the timeframe within which the registered capital must be paid up in full. All of these legal requirements restrict the flexibility of business operations and are viewed as obstacles for attracting the investment.
With an aim to reduce these restrictions, since November 2013 a series of laws and regulations have been promulgated by the Chinese authorities to introduce the capital subscription system and remove the paid-in capital registration system…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
The High Court has granted special leave to appeal a decision that held that a liquidator is not required to retain funds from the proceeds of sale of an asset to pay tax before an assessment is issued.
The Independent Commission Against Corruption (ICAC) does not have power to investigate allegations that Ms Cunneen counselled a person to lie to police.