🏢 Company setup
Company Law of the PRC (2024 Amendment) · Yalla China
قانون الشركات (تعديل 2024) / Company Law of the PRC (2024 Amendment)
Enacted: 2023-12-29 ✅ Effective: 2024-07-01
📝 Overview
Regulates the establishment, management, and governance of companies in China; the 2024 amendment introduces a modern framework for corporate governance and shareholder liability.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
Company Law (2024 Amendment) provides: (1) Company types: limited liability company (LLC), joint stock company (SA); (2) Capital: minimum capital requirements abolished for most companies but contributions must be paid within 5 years; (3) Board: large companies required to have independent directors and committee system; (4) Director liability: directors and boards held accountable for decisions contrary to company interests; (5) Foreigners: can establish wholly foreign-owned enterprises (WFOE) in unrestricted sectors.
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
When establishing a company in China, choose the appropriate legal structure and verify updated capital requirements. Ensure accurate registration of your articles of association.
📎 Official source
National People's Congress of China
🕒 Updated: 16 March 2026