The Company Law of the People’s Republic of China (“PRC Company Law”) currently in force adopts a company registration system under supervision. Specific rules within the legislation cover a registered capital system requiring a minimum amount of registered capital, a certain capital contribution period and a minimum ratio of cash contribution.
On 28 December 2013, the Standing Committee of the People’s Republic of China issued legislation to amend the PRC Company Law and adopt a new company registration system, among other rules. This legislation will take legal effect on 1 March 2014. The reforms will relax the level of governmental supervision required and will see significant innovations in the company registration system, especially in registered capital aspect.