2024 – Topics That May Concern You

Corporate

• Major update to the PRC Company Law will take effect on 1 July 2024

On 29 December 2023, the Standing Committee of the National People's Congress issued a major update to the current PRC Company Law. The revised PRC Company Law will enter into effect on 1 July 2024.

Key changes the revised PRC Company Law will bring for PRC limited liability companies ("PRC LLCs") inter alia, the following changes:

• Reduction of the contribution schedule for full payment of the registered capital to 5 years after establishment. PRC LLCs already existing before 1 July 2024 must "gradually make adjustments" to ensure compliance with the revised PRC Company Law.
• Abolishment of the requirement of other shareholders' consent for transfer of equity interests in a PRC LLC.