Substantively Revised PRC Company Law will enter into effect on 1 July 2024

On 29 December 2023, the Standing Committee of the National People's Congress of the People's Republic of China adopted and promulgated a substantive revision of the PRC Company Law, which will enter into effect on 1 July 2024 (the “2024 Company Law”).

The 2024 Company Law, comprising of 15 chapters and 266 Articles in total, constitutes a major update and introduces multiple changes compared to the current version of the PRC Company Law. Inter alia, the 2024 Company Law provides for changes regarding capital contributions, corporate governance as well as responsibilities of shareholders and key personnel of companies.

The 2024 Company Law will have major impact on all existing and future companies in the PRC, whether they are foreign-invested or domestic, and whether they are limited liability companies or companies limited by shares. Accordingly, shareholders and PRC companies should familiarize themselves with the new law and assess the impact it may have on their PRC companies and their operations in the PRC.

Please download below to see our newsletter highlighting the key aspects of the new law.