Do shareholders need to contribute capital within five years for a new company to be established? Not necessarily, there are two situations to be aware of:
But these two exceptions are made:
1. Article 47 of the Company Law stipulates:
After the amendment of the Company Law, Article 47 stipulates that the amount of capital contribution subscribed by all shareholders shall be paid in full by the shareholders within five years from the date of establishment of the company in accordance with the provisions of the articles of association.
Where laws, regulations and decisions have other provisions on the paid-in registered capital of a limited liability company, the minimum amount of registered capital, and the term of capital contribution by shareholders, such provisions shall prevail.
2. Provisions on accelerated capital contribution:
Article 54 stipulates that if the company is unable to pay off the debts due, the company or the creditors of the due creditor's rights have the right to require the shareholders who have subscribed for capital contributions but have not made capital contributions in advance.
This regulation makes it clear that if the debts cannot be paid when due, in order to protect the rights and interests of the company and the creditors of the due debts, the shareholders need to contribute capital in advance. This greatly protects the rights and interests of the company and its creditors.
In the process of running a business, we must do a good job of business planning in advance, not to slap a swollen face and become fat, but to operate according to our actual situation.