On 28 December 2013, the Standing Committee of the National People’s Congress amended the Company Law to relax or cancel certain capital-related requirements to establish and register companies in China. The amendments took effect on 1 March 2014. This begins nationwide implementation of corporate law reforms that the State Council executive meeting announced on 25 October 2013.
Corporate law reforms
The corporate law and regulatory reforms announced in October 2013 include:
- relaxed capital requirements under the Company Law;
- greater disclosure and transparency, with the following information to be publicly available electronically on local Administration for Industry and Commerce (AIC) systems (in most cases still to be set up): annual reports (filings), which will replace the current system of annual inspections; registered information, including electronic business licences and electronic registration management; and a blacklist of non-compliant companies;
- relaxed registration requirements for a company’s site of business operations (to be based on local regulations).