China Company Share Capital, Registered
Capital
As foreign friends invest open China company, The minimum
amount of registered capital required for the registration of a
WFOE starting from RMB100, 000 at least.:
Authorised and Paid up Share Capital (Registered
Capital)
The minimum amount of registered capital required for the
registration of a WFOE starting from RMB100, 000 at least. Under
the Company Laws, the paid-up capital is equal to registered
capital, Investors or shareholders must contribute the full
amount of registered capital and deposit the money into a
specified bank account (capital account) in the name of the
WFOE.
Different business activities, different capital amount is
required. For example, for the purpose of carrying out
trading business, the minimum registered capital required is
RMB500000 at least. Another example, for the purpose of carrying
out consulting business, the minimum registered capital required
is RMB100000 at least. If fact, different city will have
different requirements too.
In accordance with the relevant regulation, the investor has two
alternatives as to the timing for contribution of registered
capital. The investor can choose to contribute the capital in
one installment within 6 months after the date of incorporation;
alternatively, the investor could choose to contribute the
capital in tow installments within a period of 2 years, where
the first installment must be more than 20% of the registered
capital and contributed within 3 month and the second
installment being the balance contributed within 2 years after
the date of incorporation.
The amount of registered capital so contributed/deposited should
be audited by a firm of certified public accountants CPA. This
is so called capital contribution verification.
Shareholders/ Members / Inventors
A minimum of one shareholder/member is required whose details
are filed on the local Administration for Industry and Commerce.
Corporate shareholders are permitted. The shareholders can be of
any nationality except Chinese meetings can take place anywhere.
Capital Verification
In accordance with the Company Laws, after the company open
successfully and open bank account, the investor (member) of a
WFOE is required to contribute the registered capital either in
one instalment within 6 months or in two instalments within a
period 2 years where the first instalment must be not less than
20% and paid within 3 months after issuance of Business
Registration Licence.
And, within 30 days after the payment, the WFOE shall engage a
Chinese accounting firm to perform an audited and issue an
audited report as to certify that the registered capital has
been contributed in accordance with the Companies Laws and
Articles of Association of the WFOE. Then, the capital
verification report shall be submitted to the industrial and
commercial administration authority and tax authority for
filing. And the business license must be renewed accordingly so
as to reflect that the amount of capital so contributed.
Capital verification is required for each instalment payment.
|