Search the portal
China legal tool Corporate & startup National framework
Interactive China legal orientation tool. Review the result with the relevant legal guide and qualified counsel where facts or local implementation matter.
Where statutory reserves remain insufficient to cover losses, Article 225 permits a capital reduction used solely to cover losses. It cannot distribute to shareholders or release unpaid contribution obligations and does not use Article 224's direct-creditor-notice procedure, but a public announcement is still required within 30 days.
China legal rules often begin with a national framework, while the operational answer can depend on location, dates, documents, status and authority practice. Use this result to structure the next verification step.
Use these checks before treating an automated output as a legal conclusion.
It provides a structured calculation, screening result or drafting aid based on the facts entered and the assumptions stated on this page.
Verify the legal authority, effective date, input data, territorial scope and any exclusions identified in the result.
Documents, disputed facts, local implementation and authority discretion can affect the practical outcome.
Escalate material exposure, disputed facts, imminent deadlines, formal notices or any issue requiring representation or a legal opinion.
Use the output to organize the facts, then confirm the source, evidence, local implementation and available remedy before acting.
