Recent Changes In The Registered Capital System In China

On December 28, 2013, the Standing Committee of the National People's Congress passed certain amendments to the PRC Company Law, effective as of March 1, 2014. These amendments have relaxed certain registered capital requirements for domestic and foreign companies in China. 

In connection with implementing the amendments, several related administrative regulations have been amended or newly promulgated, such as the Regulations on Registration Administration of Companies and the Administrative Provisions on the Registration of the Registered Capital of Companies. Further, the State Council has amended the following three regulations governing foreign invested enterprises ("FIEs") to ensure that the new registered capital requirements apply to all FIEs as well: (i) the Implementing Rules for the Wholly Foreign-owned Enterprises Law (the "Implementing Rules on WFOE Law"), (ii) the Implementing Rules for the Chinese-Foreign Cooperative Joint Venture Law, and (iii) the Imp