LATEST NEWS FEEDS
China is adopting the “traditional” pre-emption right concept: 3rd impact of the New Company Law in China from July 1st, 2024
No pre-approval required to be provided by other shareholders to the shareholder transferring its shares.
China's new Company Law removes this requirement and requires only that the transferring shareholder firstly notifies remaining shareholders of its proposed transfer and providing the remaining shareholders a period of time (30 days) to exercise or decline to exercise a right of first refusal for the proposed transferred shares (this procedure is subject to the specific Articles of Association of the subject China company, however).
If you have any questions on transferring your share/equity in your Chinese company, please contact us at info@procosecasia.com
2nd Impact of the new amendments to China Company Law: Registered Capital Contributions: stricter deadline
Currently, there is more flexibility for shareholders of Chinese companies. Foreign invested / other companies in China can inject an amount of capital of their choice when incorporation their company in China and they need to pay up such capital within the operation period of the company’s business license which is typically within 30 years.
The new Company Law will impose for new companies a maximum limit of 5 years for payment of subscribed but unpaid capital. Existing companies may also be required to adjust their existing capital subscription period to align with the 5-year period. However, this is currently unclear and may need to be clarified before or following July 1st, 2024.
Should you have any questions, please contact us at info@procosecasia.com
China: Exciting news with new amendments to Company Law - Simplified process!
Two big news about company set up in China starting in the summer 2024:
1. Simplification of the process: The China company registration authorities will simplify company registration and corporate amendments (such as changes to company officers, registered address, transfer of equity interests, registered capital etc) among other matters; and
2. Online process: It is expected that the use of online features will be introduced / modified to permit China company incorporation to be more automated than is the currently the case!
This is a big news and will speed up the incorporation process – very exciting news. If you have any question, please do not hesitate to contact us at info@procosecasia.com
#china #chinacompany #companysetup #companyincorporation
Counterintuitive requirement: Commercial lease and China company set up!
Did you know that you need a commercial leased for a minimum of 12 months before incorporating your China company?
When setting up a company in many countries, it is not a requirement to firstly lease any office space / premises (particularly in the digital nomad world of today).
However, perhaps unusually, it is a requirement in China to obtain a lease for office / rental premises prior to setting up a China company.
This often comes as a surprise for our foreign clients and Procosec Asia can assist you:
1. throughout the entire China company incorporation process;
2. review of your commercial lease; and
3. confirming with the authorities that your lease is in a commercial building allowing you to set up your company with that specific address. Not all buildings allow a commercial lease and can be used for your company incorporation;
4. checking that the unit you are leasing is not used by any other registered company: if that space was leased before by another company, that company must have changed that specific address with the authorities before you can use it for your company registration.
To find out more details as to our China company incorporation services, please contact us at info@procosecasia.com
How to Transfer Shares in a Singapore Company?
The answer to this question will depend principally on the current ownership structure of the Singapore company.
For example, if a company has a single shareholder the process of transferring share(s) is more straightforward than where there are numerous shareholders who may need to consent to the proposed share(s) transfer in advance.
In addition, various documents are usually required to be submitted to the Singapore company by the transferor(s) and transferee(s) of the share(s), such as:
1. Signed share(s) transfer instrument(s) between the transferor(s) and transferee(s) of the share(s) in the Singapore company;
2. Stamp duty certificate(s) with respect to the share(s) to be transferred in the Singapore company;
3. Original share certificates representing the share(s) being transferred in the Singapore company (if possessed by the transferor of the share(s) – sometimes the company secretary of the Singapore company will possess the same); and
4. Resolutions passed by the board of directors and / or shareholder(s) of the Singapore company approving the proposed share(s) transfer.
Once all the above – which may differ depending on the specific Singapore company in question – is ready, it is important to ensure that the appropriate e-filings are then submitted to the Accounting and Corporate Regulatory Authority of Singapore (ACRA) to ensure the transferee(s) of the transferred share(s) are reflected as the owner(s) of the share(s) in the Singapore company.
Procosec Asia provides Singapore company incorporation and annual maintenance / compliance services to ensure your Singapore company meets all compliance requirements in Singapore.
To find out more about our Singapore company secretarial services, please contact: info@procosecasia.com today.