China Revises Company Law to Tighten Capital Contribution Rules

Chinese lawmakers changed the country’s Company Law by setting tougher capital rules for registering a new firm, an effort to close loopholes in corporate governance and prevent financial risks.

The revised law takes effect July 1, 2024, the official Xinhua News Agency said Friday. While the full text of the amendment wasn’t immediately available, Xinhua reported earlier that the law will require a company’s shareholders to inject the declared amount of capital within five years. The time limit could be shorter for some key industries.

The revisions were adopted after a rare fourth review and reversed a 2013 reform that ...