Navigating China's Corporate Evolution: Unveiling Key Changes for Foreign-Invested LLCs 新公司法:揭示外商投资有限责任公司的关键变化(Chinese language))
The National People’s Congress Standing Committee (NPCSC) passed a significantly revised version of the Company Law on 29th December 2023, which will enter into force on 1st July 2024. This timing coincides closely with the expiration of a five-year grace period for foreign-invested companies to adjust to China’s Company Law by the beginning of 2025. This grace period began when the Foreign Investment Law (FIL) came into force on 1st January 2020.
The revised Company Law presents several new requirements for businesses, including updates to capital contribution rules for limited liability companies (LLCs), new diligence requirements for management and supervisors, and the requirement of an employee representative on boards of directors of some companies. It also includes new options for companies, such as the ability of companies with a small number of shareholders or a small scale of business to have no supervisor, the option for an audit committee in lieu of a supervisory board or individual supervisors for LLCs and greater freedom to choose which personnel can serve as legal representative.
During this seminar, participants will gain valuable insights as the experts delve into the intricacies of the New Company Law, offering expertise on the challenges faced by foreign-invested companies in China, with focus on limited liability companies. The discussion will focus on common issues and specific challenges encountered by foreign companies operating in China.