Major improvements for FIEs registration in PRC as from March 1st of 2014

The latest revision of the Chinese Company Law will come into effect on March the 1st of 2014.

It is of particular importance since a communication of the State Administration of Industry and Commerce in November 2013 that confirmed that the Foreign Invested Enterprises would benefit from it.

The main goals of the revision are to loosen requirements for company registration by lowering registered capital requirements, reducing costs of incorporation, and loosening registration principles.

Here are the main features :

As FIEs are subject to specific laws in China, there will still be a need for guidance on how to make the procedural adjustments for FIEs, and whether all of this will be applied retroactively, more importantly for the companies which incorporation is in process as of March 1st 2014.

It is noticeable that the authorities are making efforts to limit the administrative procedures in order to facilitate investment and support economic growth. A positive sign for foreign investors.

[1] We strongly suggest you to seek legal advice before using this method, as it depends on the type of business you conduct and every case is different.