Legislation roundup: PRC Company Law, environmental protection and M&A accounting

January 28, 2014 | BY

clpstaff &clp articles

The second amendment to the PRC Company Law removes registered capital requirements. The Ministry of Environmental Protection has categorised environmental credit ratings and the Ministry of Finance has clarified the accounting treatment for mergers.

Company Law

PRC Company Law (2013 Revision)

中华人民共和国公司法 (2013修正)

The new Company Law abolishes the provision that requires the shareholders (sponsors) of a company to fully pay in their capital contributions within two years of the date of establishment of the company and companies with an investment nature to pay in their capital contributions in full within five years. It abolishes the minimum registered capital requirement of Rmb30,000 for limited liability companies and no longer places restrictions on the initial capital contribution percentage of the shareholders (sponsors) at the time of the establishment of the company; and no longer places restrictions on the percentage of the capital contributions of the shareholders (sponsors) that is to be made in cash.

See the full translation .

Further reading

PRC Company Law (Amended)

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