It is clearly defined that there is a minimum registered capital requirement and the contribution period for foreign investors to set up enterprise in PRC territory.
According to the “Company Law”, the registered capital of a limited liability company is the one which all shareholders subscribed and registered at the registration authority. At the first instance, the registered capital contribution by all shareholders should not be less than 20% nor can it be less than the minimum statutory requirement. For the rest portion, the shareholders should pay within 2 years since its incorporation. Among them, investment companies can be paid within 5 years. For a joint stock limited company, its registered capital is the one which registered in the registration authority, and is, agreed to contribute by all the promoters. At the first instance, the contribution by all promoters shall not be less than 20% of the total registered capital. For the rest portion, the promoters shall be paid within 2 years since its incorporation. An investment company can be paid off within 5 years.
- For Joint Ventures, Cooperative enterprises, it must state clearly in the contract and articles of association, the investment period. If no such clause, approval will not be granted and registration approval will not be granted by agency.
- At the time of establishment: foreign-invested limited liability company (including a sole limited liability company) shareholder(s) has to pay all contribution in one-time and must be within 6 months from the date of its incorporation. For installments, the first contribution shall not be less than 15% of the total capital investment nor should it be less than the minimum statutory requirement, and it should be settled within 3 months from the date of its incorporation. For the remaining portions, the funding period should be within the time scope as stipulated in the “Company Law”. For Foreign-Invested limited liability company, it should be within the time limit and scope set out in the “Company Law”.
- Replenishment: At the time when Foreign-invested limited liability company increases its registered capital, a limited liability company (including a sole limited liability company ) and those to issue funds for limited company, shareholders shall, at the time when apply for change in registered capital, have already paid not less than 20% of the proposed new registered capital. For the rest portion, the funding period should be in compliance with the "Company Law " requirement, other laws and administrative regulations.
- At the time when Foreign Invested Joint Stock issue new shares to increase its registered capital, its shareholder(s) subscribe for new shares in accordace with its joint-stock liability.