On December 29, 2023, the seventh session of the Standing Committee of the 14^th National People's Congress adopted the Company Law of the People's Republic of China (Revised in 2023) (the "Company Law") by voting, with effect from July 1, 2024.

The revised Company Law, consisting of 15 chapters, involves company registration, establishment and organizational structure of limited liability companies, transfer of equity in limited liability companies, establishment and organizational structure of joint stock limited companies, among others. The Company Law improves the subscription and registration system for limited liability companies, clarifying that the subscribed capital shall be fully paid by the shareholders within five years from the date of the company's establishment as stipulated in the company's articles of association. Meanwhile, for companies that have been registered and established prior to the implementation of the new Company Law, if the payment deadline for capital contributions exceeds the statutory period hereunder, it shall be adjusted to conform to the statutory period hereunder, unless otherwise specified by laws, administrative regulations, or other provisions of the State Council; if the payment deadline for capital contributions and the amount of capital contributions are obviously abnormal, the company registration authority shall request them to make adjustment pursuant to the law.

(Source: www.npc.gov.cn)