Under the 2024 New Company Law (registered capital paid up within 5 years), how should old companies respond? Tax parks, preferential tax policies, more details to learn about the tax saving book.
With the newly revised Company Law coming into force on July 1, 2024, it is clarified that the amount of capital contribution subscribed by all shareholders shall be paid up within five years from the date of establishment of the company. This change is both an opportunity and a challenge for established companies. Old companies need to carefully review their own development strategies and reasonably adjust their capital structure to adapt to the new market environment.
First of all, the registered capital of the company, simply put, refers to the monetary funds subscribed or paid by the shareholders. On the one hand, it mainly plays a role in responsibility, and the registered capital of the company should bear the claims and debts equivalent to the registered capital. On the other hand, the registered capital also involves the qualification rating of the company and the reference value of the creditor's assessment of the strength of the enterprise.
Secondly, the subscription of the company's registered capital is a promise that it will be handed over to the company within a certain period of time, but it has not been paid yet, while the actual payment is actually invested in the company.
So, what impact will the implementation of the new company law have on old companies?
1.Financial pressure: Old companies may face the problem of tight funds, and need to raise funds to complete the payment of registered capital while ensuring daily operations.
2.Creditworthiness issues: The payment of registered capital may affect the company's creditworthiness, and failure to pay on time may have a negative impact on the company's reputation and market position.
However, in order to cope with the challenges brought about by the new company law, how should the old company cope?
1. Reasonable planning of funds:
The payment plan of the registered capital was planned in advance, and in accordance with the "step-by-step" adjustment requirements of the new company law, the old company set a three-year transition period (2024.).7.1-2.27.6.30), which can be in 20326.30 days before the actual payment can be in place.
2. Consider reducing the capital, the details are as follows:
1. First of all, a shareholders' meeting should be convened, because the company's capital reduction is a major event of the company. A limited liability company shall submit a resolution of the shareholders' meeting signed by the shareholders representing more than two-thirds of the voting rights, and a one-person limited liability company shall submit a written decision signed by the shareholders.
2. Amend the articles of association of the company, mainly involving the amount after capital reduction, the latest amount of subscribed funds of each shareholder, the method of capital contribution and the date of capital contribution of each shareholder.
3. Confirm the company's creditor's rights and debts, and prepare the balance sheet and property list.
4. Notify creditors and make an external announcement, the company shall notify creditors within 10 days from the date of making the resolution to reduce capital, and make an announcement in a newspaper at or above the provincial level within 30 days.
5. To repay debts or provide guarantees, the company's creditors shall repay the debts first or provide an equal amount of guarantee within 30 days from the date of receipt of the notice, and within 45 days from the date of announcement if they do not receive the notice.
6. If there is no problem with the above procedures, then you can go to the administrative examination and approval department to handle the change registration of capital reduction, and the entire capital reduction process will be basically completed.
Finally, for many companies with large registered capital, when facing operations such as capital reduction, equity transfer or even cancellation, it is best to log in to the local administrative examination and approval, and operate according to the local process and required documents, so as to reduce unnecessary trouble as much as possible.