On February 7, 2024, the State Administration for Market Regulation (SAMR) drafted the Provisions of the State Council on Implementing the Registered Capital Registration and Management System under the Company Law of the People's Republic of China (Draft for Comment) (the "Draft") to solicit public opinions by March 5, 2023.

The Draft sets forth the provisions on the registered capital registration and management system by expressly implementing the "3+5" adjustment arrangements for existing companies, adjusting and disposing of companies with abnormalities in capital contribution time limit and amount, specifying information disclosure requirements, and regulating intermediaries. Specifically, the Draft: (1) introduces a three-year transition period for existing companies; (2) clarifies the applicable rules for the capital contribution time limit for newly established companies; (3) calls on the registration authorities to raise the level of convenient services; (4) clarifies how to determine and dispose of the circumstances where the capital contribution time limit and amount are obviously abnormal; (5) clarifies exceptional circumstances for specific companies; and (6) introduces the specific requirements for information disclosure.

(Source: State Administration for Market Regulation)