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歡迎訪軟銀財(cái)務(wù)官網(wǎng)
2024-2-20

Thinking about Capital Reduction

The new company law will come into effect on July 1th 2024. According to the new law, a limited liability company ( LLC) must inject registered capital within 5 years from the date of registration. Three-year transition period has been given to the existed LLCs before the implementation of the new law.


Companies whose business has no substantial relationship with the registered capital can arrange to reduce registered capital at a convenient time from now on.

However, there are some companies whose business have substantial relationship with the registered capital, their registered capital needs to reach a certain amount in order to obtain the relevant licenses or qualification, but can’t to pay the registered capital at once, such companies can maximize the use of the three-year transition period. How to do then?


There are two steps:

1. Before June 30, 2027, modify the deadline for injection the registered capital to be before June 30, 2032;

2. Injection the unpaid registered capital before June 30, 2032. Please note that a foreign company needs to open an capital bank account to receive the capital.

Of course, in 2032 finial decision is not to inject the unpaid registered capital, the capital reduction can be arranged in advance in 2032.


At present, before reduction the registered capital, the company needs to do an announcement of reducing the registered capital which needs 45 days, and after the expiration of the announcement, then can do the process of reduction registered capital in the government, so please leave enough time for the process.


We hope we can be your assistance with our professional experience. Here is our senior consultancy Wechat, welcome you to join us to discuss or consult in accounting & tax and company’s registration.


Please contact us with any enquiries

wcx@ruanyinchina.com

fmjr.com.cn

+86 021 6049 2821

+86 189 1629 8482




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