Minimum Registered Capital Requirements

An Expert's View about Business Administration in China

Last updated: 22 Feb 2011

China's latest Company Law has removed requirements on minimum registered capital for different types of company and allows companies to pay up their capital in two years in accordance with regulations. Investment companies can pay up their capital in five years.
 

1.5.1 Minimum Registered Capital Requirement

Under the Company Law, companies in the mainland are mainly incorporated in the form of limited liability companies or joint-stock limited companies. For limited liability companies, the minimum registered capital is lowered to Rmb30,000. For joint-stock limited companies, the minimum registered capital requirement is Rmb5 million.

According to the existing rules of government authorities overseeing different sectors, the following requirements are applied to FIEs concerning minimum registered capital:

(a) The minimum registered capital of a JV commercial enterprise engaged in wholesale or retail should comply with the requirements of the Company Law. The Company Law stipulates that the minimum registered capital of limited liability companies is Rmb30,000, while the minimum registered capital of joint-stock limited companies is Rmb5 million.

(b) The minimum registered capital of a foreign or JV bank is Rmb300 million worth of freely convertible currencies;

(c) The minimum registered capital of a foreign or JV financial institution is Rmb200 million worth of freely convertible currencies;

(d) The minimum registered capital of a JV travel agency is Rmb2.5 million;

(e) The minimum registered capital of a JV advertising agency is US$300,000;

(f) The minimum registered capital of a JV foreign trade company is Rmb50 million;

(g) The minimum registered capital of a JV international freight forwarding agency is US$1 million;

(h) The minimum registered capital of a foreign-invested printing company engaged in the printing of publications and printed materials for packaging is Rmb10 million, while the minimum registered capital of a foreign-invested printing company engaged in the printing of other printed materials is Rmb5 million;

(i) The minimum registered capital is Rmb2 billion for a company engaged in trans-provincial basic telecom business; Rmb200 million for a company engaged in provincial basic telecom business; Rmb10 million for a company engaged in trans-provincial value-added telecom services; and Rmb1 million for a company engaged in provincial value-added telecom services;

(j) The minimum registered capital of a foreign-invested insurance company is Rmb200 million or its equivalent in freely convertible currency;

(k) The minimum registered capital of a foreign-funded investment company is US$30 million;

(l) The minimum registered capital of a foreign-funded investment shareholding company is Rmb30 million.

To read the full version, please click here


Posted: 18 February 2011, last updated 22 February 2011

See more from Business Administration in China

Expert Views    
Mustknows about business set-up in China   By Sara Cheng, Consultant
How to Speed Up Your China Business   By Sara Cheng, Consultant
Hot Tips    
Due diligence on Chinese Companies   By Sara Cheng, Consultant
How To Get Your Money Back From Clever China Cheaters...   By China Fraud Patrol
Latest News    
Recognizing A Chinese Scam   By China Trade Commission