Company Law of the People's Republic of China issued on Dec 29th, 2023 shall be effective from July 1th, 2024.

There are some bright spots in the new version of the law summarized as below.

1. The registered capital should be paid in 5 years after the incorporation of a limited liability company. Shareholders of the company should pay their respective subscribed capital according to the schedule and amount stipulated in the company’s article of the association.

2. For small sized companies or companies with a small number of shareholders, if the shareholders agree, the shareholders of such limited liability companies have the right to decide whether set the position of the supervisor.

3. In the new version, there is no restriction for a nature person or one-person limited liability company to invest more than 2 companies whose nature is one-person limited liability company.