New amendments to PRC Company Law

By Yi Yi Wu and Yulan Guo

On 28 December 2013, the Standing Committee of the National People’s Congress announced the fourth set of amendments to the PRC Company Law, which will take effect on 1 March 2014. The amendment is intended to relax the requirements necessary to establish a company in China and to encourage investment.

The amendment primarily centres around three aspects: the minimum amount of registered capital required; the contribution of the registered capital; and the registration of the company.

The amendment removes the requirement for the minimum amount of the registered capital for company establishment under the PRC Company Law of 2005…

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