Friday, 5 February 2016

China Updates- Capital Contributions

Capital Contributions
MOFCOM has removed inconsistencies arising from previous reform of the rules on the registered capital of corporations in China. (See our earlier Primasia newsletter on this subject where the inconsistencies and uncertainties were highlighted.) In essence, it was uncertain whether the reforms, which appeared to be intended to be applied universally within China, were in fact applicable to Foreign Invested Enterprises.

Now MOFCOM has clarified that.
  1. The minimum registered capital requirements on (most) FIEs have been removed, and,
  2. Full contribution of registered capital to an FIE is no longer required for its shareholders to invest their equity interests in the FIE into another FIE.

Primasia will post the updates of Hong Kong and China from time to time. Follow us on our WebsiteBloggerLinkedIn and stay tunned for our updates!


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