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Q&A on the Registered Capital of LLC in China

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Q&A on the Registered Capital of LLC in China

  1. What is the registered capital of LLC in China?

    Answer: The registered capital of a limited liability company in China refers to the amount of capital contribution subscribed by all the shareholders and registered with the company registration authority.

  2. Are there any minimum registered capital requirements for LLC in China?

    Answer: Unless otherwise stipulated by laws, administrative regulations and the State Council of the PRC, there is no minimum registered capital requirement for establishing a limited liability company in China. Shareholders can determine the amount of registered capital based on the company's need for operation funds.

  3. The registered capital of LLC in China must be paid in or not?

    Answer: Unless otherwise stipulated by laws, administrative regulations and the State Council of the PRC, the registered capital subscribed by the shareholders of a limited liability company shall be fully paid in within 5 years from the date of establishment of the company in accordance with the provisions of the company's articles of association.

  4. The registered capital of LLC in China can be paid in by installments or not?

    Answer: Shareholders of a limited liability company in China can pay in their subscribed registered capital by installments or in a lump sum based on the actual needs during the capital contribution period.

  5. The registered capital of LLC in China can be contributed in non-monetary properties or not?

    Answer: According to the Company Law of the PRC, shareholders can make capital contrition in kind, intellectual property rights, land use rights, equity, creditor’s rights and other non-monetary properties that can be valued in currency and transferred in accordance with the law, except for properties that cannot be used as capital contributions in accordance with the laws and administrative regulations.

  6. Is it required to conduct property evaluation for non-monetary contribution?

    Answer: According to the relevant regulations, property evaluation shall be conducted for non-monetary properties used as capital contribution. The contributed value shall be in line with the evaluation result.

  7. Is it allowed to use the paid in registered capital to settle the company's operation expenses?

    Answer: Yes, the registered capital paid by the shareholders can be used to pay the company's daily operation expenses, such as employee salaries, office rent, supplier payments, etc.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.

See also:
Registration Process and Fees for Foreign-Invested Companies in China

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