On 6 February 2024, the State Administration for Market Regulation of the PRC released a draft on the State Council's Regulations on the Implementation of the Registration and Administration System for Registered Capital under the Company Law of the PRC for public comments on its official website. The draft specifies clearly that the existing companies should adjust their capital contribution periods as follows:

1. Normal Existing Companies
   
   A normal limited liability company established before 1 July 2024 may adjust its remaining capital contribution period to 5 years during the transition period starting from 1 July 2024 to 30 June 2027 and complete the capital contribution before 30 June 2032.  If the remaining contribution period of a limited liability company is less than 5 years from 1 July 2027, then the adjustment of capital contribution period is not required.
   
   A normal joint stock limited company established before 1 July 2024 may fully pay the subscribed shares during the transition period starting from 1 July 2024 to 30 June 2027.
   
   
2. Abnormal Existing Companies
   
   If a company with a capital contribution period of more than 30 years or a registered capital of more than RMB1 billion established before 1 July 2024, and is deemed to be abnormal on capital contribution period and amount shall adjust its capital contribution period and amount within 6 months. The adjusted capital contribution period shall not exceed 5 years from 1 July 2027.
   
   
3. Contribution of the Increased Capital
   
   The subscribed increased registered capital of a limited liability company should be fully paid within 5 years as well. The subscribed increased registered capital of a joint stock limited company should be fully paid by the shareholders before handling the change of registered capital with the registry office.
   
   
4. Exceptions
   
   Companies established before 1 July 2024, which undertake major national strategic tasks, are related to national economy and people's livelihood or involve national security and major public interests, may, with the consent of the competent department of the State Council or the government at or above the provincial level, contribute capital in accordance with the original capital contribution period.

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