If an LLC is established before July 1, 2024, but the remaining contribution period for its shareholders is less than five yearsfrom July 1, 2027, the company does not need to make any adjustments during the transition period. However, if the remaining contribution period exceeds five years, then it must be adjusted to be within five years during the transition period. That is to say, the final date for LLCs established before July 1, 2024 to complete their capital payment is June 30, 2032.

Meanwhile, for joint stock companies established before the implementation of the amended Company Law, the funds for subscribed shares must be fully paid within the three-year transition period (before June 30, 2027).

In the past, in order to show the strength of the company, some entrepreneurs will choose to put a large registered capital, but in fact they never pay for this capital. According to the new law, this type of action will no longer be available!

So, if there are multiple companies under your name or you have put a large registered capital, you need to hurry up to deal with it, so as not to run into the red line of the law.

If the registered capital at the time of company registration is 500,000 RMB, then you need to deposit an amount of 500,000 into the company’s bank account.

02 Reduction of registered capital

If the amount of registered capital is too high, there is no way to inject so much money into the company, you can apply for reduction of registered capital. It is important to note that you should follow the legal minimum capital, as each company’s scope of business has an amount limit.

03 Cancel the company

Because the procedures for capital reduction can be complicated, if you do not intend to operate, the last option is to cancel the company.