State Council, Plan for Reforming the Registered Capital Registration System
国务院注册资本登记制度改革方案
March 10, 2014 | BY
CLP Temp &clp articles &China implements new registration system for registered capital subscription.
Issued: February 7 2014
Main contents: The registration system for registered capital subscription shall be implemented. The total of the capital contributions subscribed for by the shareholders of a company or the total of the share capital (i.e. the company's registered capital) subscribed for by the promoters shall be registered with the administration for industry and commerce.
The minimum registered capital of Rmb30,000 for limited liability companies, Rmb100,000 for one-person limited liability companies and Rmb5 million for companies limited by shares shall be abolished. The initial capital contribution percentage of all of the shareholders (promoters) at the time of the establishment of a company shall no longer be subject to restrictions, the percentage of the registered capital accounted for by capital contributions made in cash by all of the shareholders (promoters) of a company shall no longer be subject to restrictions and a deadline for the payment in full by the shareholders (promoters) of a company of their capital contributions shall no longer be specified.
The registration system for registered capital subscription shall not, for the time being, be implemented for:
1. companies limited by shares established through an offering of shares;
2. commercial banks;
3. foreign-funded banks;
4. financial asset management companies;
5. trust companies;
6. finance companies;
7. lease financing companies;
8. auto finance companies;
9. consumer finance companies;
10. money brokerages;
11. rural banks;
12. loan companies;
13. rural credit cooperative unions;
14. rural mutual aid fund associations;
15. securities companies;
16. futures companies;
17. fund management companies;
18. insurance companies;
19. dedicated insurance agencies and insurance brokerages;
20. foreign-funded insurance companies;
21. direct sales enterprises;
22. foreign service cooperation enterprises;
23. financing security companies;
24. temp agencies;
25. pawnbrokers;
26. insurance asset management companies; and
27. small loan companies.
The enterprise annual inspection system shall be replaced by the enterprise annual report publication system. An enterprise shall submit its annual report to the administration for industry and commerce and publish the same by the prescribed deadline for the year, and any entity or individual may review the same. The main contents of an enterprise annual report shall include details of the payment by the company's shareholders (promoters) of their capital contributions, asset position, etc. An enterprise shall be liable for the truthfulness and lawfulness of its annual reports. The administration for industry and commerce may do random reviews of the published contents of enterprises' annual reports.
Related legislation: Circular on the Termination of Annual Inspections of Enterprises, Feb 14 2014
clp reference:2330/14.02.07 issued:2014-02-07This premium content is reserved for
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