China Laws and Regulations Update in March 2014

1. The State Council has begun circulating the “Registered Capital Registration System Reform Plan”

On February 7th, 2014 the State Council issued the Registered Capital Registration System Reform Plan (the “Plan”) with the purpose of promoting the development and efficiency of business registration systems.

The Plan makes it clear that requirements for registered capital of companies applying to be incorporated will be lowered. However, minimum registered capital restrictions could remain applicable to companies in given industries subject to relevant laws, administrative rules and decisions made by the State Council. The new guidelines stipulate that the minimum registered capital restrictions of RMB 30,000 on limited companies, RMB 100,000 on solely- owned limited companies and RMB 5,000,000 on stock-limited companies will generally be lifted. Additionally, restrictions on the proportion of registered capital that is initially subscribed by all shareholders (or initiators) upon incorporation of a company as well as the proportion of registered capital subscribed in cash by all shareholders (or initiators) to the total registered capital of a company will be lifted. The duration of existence for a company with registered capital not fully paid by its shareholders (or initiators) will also no longer be limited.

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China’s Latest Laws and Regulations in January 2013 (I)

I.  The Standing Committee of the National People’s Congress Adopted the Decision on Amending the Labor Contact Law.

On December 28, 2013, the Standing Committee of the National People’s Congress adopted and issued the Decision on Amending the Labor Contact Law of the People’s Republic of China, which will take effect on July 1, 2013. Four articles were revised, all relating to labor dispatch. The changes include an increase in the minimum registered capital of labor dispatching companies and administrative licensing to initially engage in the labor dispatch business; emphasizing the dispatched worker’s right of “equal pay for equal work;” declaring labor dispatch is a supplementary arrangement of employment and limiting the usage of labor dispatch; and imposing more serious liabilities on labor dispatching companies and the companies receiving the dispatched workers.

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New Chinese Laws and Regulations in February of 2012

Bridge IP Law Commentary today will post you the latest laws and regulations promulgated in February of 2012 in China.

I. The municipal conference on the regulation of the Administration of Labor Dispatch (“Working Conference”) in Shanghai, and the Several Opinions on Regulating the Administration of Labor Dispatch for Trial (“Several Opinions for Trial”)

In the morning of the 20th February of 2012, the conference on the regulation of the labor dispatch administration was held in Shanghai, on which the Several Opinions for Trial made by the three related departments in the coordination of labor relationship was issued. There are six articles in the Several Opinions for Trial, including to establish the record and regular report system of the labor dispatch unit, the doctrine of the local insurance payment for labor dispatched from other provinces, and the definition of the legal liabilities of the labor-dispatching units and employing units, etc..

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