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Establishment of a Joint Stock Limited Company in China
According the Company Law of the PRC, a joint stock limited company may be established by the way of promotion or stock floatation.Establishment by promotion means that the promoters establish a company by subscribing for all of the shares that should be issued by the company. Where a joint stock limited company is established by promotion, the promoters shall
Qualifications and Obligations of Key Roles in a China Company
The key roles in a China company include the director, supervisor, general manager and other senior management personnel of the company. The Company Law of the PRC has set forth their qualifications and obligations in a separate sector. Kaizen hereby summarizes the provisions as follows for your easy reference.
Accelerated Expiry of Shareholders’ Capital Contribution in China
The shareholders of a China company are allowed to freely agree on the amount of the subscribed capital and term of capital contribution under the subscribed registered capital system as stipulated in the Company Law of the PRC. If the term of capital contribution of the shareholders has not expired, is it possible for the company creditors to ask for the accelerated expiry of shareholders’ capital contribution obligation so as to realize their creditor rights?
Actual Controller Disclosure Requirement for China FIEs
In accordance with the Foreign Investment Information Reporting Measures of the PRC, China foreign invested enterprises (FIEs) are required to report and disclose their ultimate actual controllers (also known as ultimate beneficiary) to the Ministry of Commerce of the PRC and local commerce bureaus under the penetration principle.
China Seeks Public Opinions on New Encouraged Catalogue for Foreign Investment
On 31 July 2020, China’s National Development and Reform Commission and the Ministry of Commerce on June 30 jointly seek public opinions on the Catalogue of Encouraged Industries for Foreign Investment (2020 Version). The deadline for feedback is 30 August 2020.Compared with the 2019 version, 125 items have been added and 76 items have been modified
China's 2020 Negative List for Foreign Investment Takes Effect
China’s newly revised Special Administrative Measures on Access to Foreign Investment (2020 Version) (2020 National Negative List) and Free Trade Zone Special Administrative Measures on Access to Foreign Investment (2020 Version) (2020 FTZ Negative List) have taken effect on 23 July 2020. This is the fourth year in a row since 2017 that China has revised the negative list for foreign investment.
Highlights of China’s Draft Regulations on the Registration and Administration of Commercial Entities
On 15 June 2020, the State Administration for Market Regulation of the PRC published the Regulations on the Registration and Administration of Commercial Entities of the PRC (Draft) (hereinafter referred to as the Draft Regulations) on its website to seek public comments. The Draft Regulations consist of six chapters and 102 articles, including general provisions
Guide to Application for Mainland China-Hong Kong Cross-border License Plate
With the development of the Guangdong-Hong Kong-Macao Greater Bay Area, the number of ports between Guangdong province and Hong Kong increases a lot. The relevant government authorities of the two places have launched administration measures on the quotas for cross- boundary private cars accordingly.
China’s Foreign Investment Access Policies
China is now implementing a foreign investment administration model of Pre-establishment National Treatment plus Negative List in accordance with the Foreign Investment Law of the PRC.Pre-establishment National Treatment means foreign investors and investments are treated no less favourably than domestic investors and investments at the stage of investment entry.
Special Rules for One-person Limited Company in China
One-person limited liability company as stipulated in the Company Law of the PRC refers to a limited liability company with only one natural person shareholder or legal person shareholder. Since there is only one shareholder in a one-person limited liability company, it is easy for the shareholder to abuse the independent status of corporate legal person and shareholder’s limited liability to evade debts.