On December 29, 2023, the revised Company Law of the People's Republic of China (the "New Company Law") was officially promulgated and will come into force on July 1, 2024.
The most controversial issue in the amendment process is 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".
In the end, the dust finally settled on the five-year paid-in payment, which was clearly stipulated in Article 47 of the New Company Law. With the implementation of this provision, the practical issue of five-year paid-in payment has attracted great attention from the practical community.
Purely from the provisions of the new company law, it seems to have the flavor of "old people and old methods".
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For companies established before the implementation of the new law (July 1, 2024), the new company law does not adopt a "one-size-fits-all" approach, but allows the existence of companies with "a capital contribution period beyond the period specified in this law".
This is not only the result of objective reality, but also the objective demand for the stability of market order. However, it should be noted that the New Company Law also provides future directions from two other aspects: (1) it should be gradually adjusted to within the time limit specified in the Law; (2) If the term and amount of capital contribution are obviously abnormal, the company registration authority may require it to adjust in a timely manner in accordance with the law.
For the establishment of a company, in addition to an in-depth interpretation of the company law, it is also necessary to fully understand the preferential tax policies.
Industrial incentives and support policies
Those registered in the preferential tax park can get VAT and corporate income tax incentives, and the proportion of rewards is formulated according to the amount of tax paid by the enterprise.
Rewards are cashed out on a monthly basis, and taxes are paid in the current month, and the corresponding rewards can be obtained in the following month. The reward ratio is between 70% and 90%.
Enterprises can hand over the business of sales or procurement to the enterprises established in the park, and high incentives can reduce the tax burden of enterprises.
The platform can provide agency services, if enterprises encounter difficulties in taxation, they can have one-on-one consultation and answers with professional tax accountants at any time.