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.