Meaning
Statutory requirement obligates shareholders to pay their committed capital into the company within a five-year window. The registered capital subscription schedule was introduced in the 2024 Company Law to ensure that firms are properly funded and can meet their debts. It applies to all new companies and requires existing firms to adjust their plans.
Payment Deadline
Shareholders must specify the exact dates for each installment of their capital contribution in the articles of association. Failure to follow the registered capital subscription schedule leads to fines for the company and the individual owners. This deadline prevents the creation of shell companies with no actual assets.
Liability Exposure
If a company cannot pay its debts, creditors can demand that shareholders pay the remaining balance of their subscription immediately. The registered capital subscription schedule serves as a safeguard for business partners and lenders. Shareholders remain personally liable for any unpaid amounts until the full capital is settled.
Credit Publicity
The payment status and the schedule are recorded in the national enterprise credit information system. Anyone checking the registered capital subscription schedule can see if the company has met its funding obligations. This transparency improves the overall trust in the domestic business environment.
