Company law & compliance
Running a Chinese company within the rules: the 2024 Company Law, capital, chops, the legal representative and annual filings.
China's 2024 Company Law: the changes that matter to foreign-invested companies
China's revised Company Law took effect on 1 July 2024. It requires LLC capital to be paid in within five years and makes directors responsible for chasing unpaid capital. It also allows simpler boards and makes shareholders, directors and the legal representative more exposed when things go wrong. Every WFOE and JV is affected.
The 2027 capital deadline: which companies need to act, and how
Every Chinese limited liability company set up before 30 June 2024 with a capital schedule longer than five years must shorten it by 30 June 2027. Here is how to check whether your WFOE or JV is affected, and the three ways to fix it.
Annual report, audit and tax filing: the yearly compliance calendar for a China company
Every Chinese company, including WFOEs, must file an annual report to SAMR by 30 June, which also carries the foreign-investment information. Before 31 May it must file the annual corporate income tax reconciliation, usually with audited accounts. Missing the 30 June deadline puts the company on the abnormal operations list.
Company chops in China: types, uses and how to control them
Company chops are official seals that legally bind a Chinese company, much like an authorised signature. Every company has an official company chop, and most also have finance, legal-representative, contract and invoice chops. Whoever holds them can commit the company, so chop control is a core internal control.
The legal representative of a Chinese company: role and personal risks
Every Chinese company has one legal representative, named on the business licence, who acts for the company by law. Under the 2024 Company Law it must be a director or the manager who runs the company's affairs. The role carries personal risks, including exit bans and credit restrictions if the company defaults.
Beneficial ownership filings: common mistakes we see in WFOE files
Since 1 November 2024, Chinese companies must file information on their beneficial owners. WFOEs with a corporate parent are not exempt. These are the errors we see most often, and how to avoid them.
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