Is It a Good Time to Consider a Joint Stock Company in China?

February 2024
Region: Asia Pacific

When setting up a company in China, an investor needs to consider the corporate form in which this company should be established. In practice, most investors prefer to set up a limited liability company (LLC). Given the amendment to the PRC Company Law adopted by the Standing Committee of the National People’s Congress on December 29, 2023 (New Law) coming into effect from July 1, 2024, is it now a good time to consider a joint stock company (JSC)?

This article compares the differences between LLCs and JSCs in certain major respects under the New Law to provide investors with information that may be useful to answer this question.

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