Registered Capital Regulations

   £ £ China has clear policies regulating minimum registered capital and investment amounts for foreign investment projects.

1£®Minimum Registrerd Capital Amounts

As stipulated in China¡¯s Corporate Law, minimum registered capital for limited liability corporations is based on the nature of the industry. For manufacturing industries it cannot be less than RMB 500 thousand. The miminum registered capital for various industries according to current laws is given below.

£¨1£©Foreign funded banks, joint venture banks: minimum registered capital of RMB 300 million in a freely convertible currency£»

£¨2£©Foreign funded financial institutions, joint venture financial institutions: RMB 200 million in a freely convertible currency£»

£¨3£©Joint venture tour operators: not less than RMB 5 million£»

£¨4£©Joint venture advertising agencies: not less than USD 300 thousand £»

£¨5£©International joint venture freight forwarding enterprises: not less than USD 1 million £»

£¨6£©Foreign funded investment oriented enterprises: not less than USD 30 million£»

£¨7£©Foreign Limited Liability Joint Stock Companies: not less than RMB 30 million.£»

2£®Regulations concerning the ratio of registered capital to total investment

In Interim Measures Concerning the Ratio of Registered Capital to Total Investment Amount of Sino-Foreign Equity Joint Venture Enterprises, the State Administration for Industry and Commerce provides the following policies regulating the ratio of registered capital to total investment for foreign funded companies. :

£¨1£©If total investment is equal to or less than USD 3 million, registered capital must be at least 7/10 of the total investment. £»

£¨2£©If total investment is above USD 3 million but less than or equal to USD 10 million, registered capital must be at least 1/2 of the total investment. If total investment is less than USD 4.2 million, registered capital must be at least USD 2.1 million. £»

£¨3£©If total investment is above USD 10 million but less than or equal to USD 30 million, registered capital must be at least 2/5 of the total investment. If total investment is less than USD 12.5 million, registered capital must be at least USD 5 million.£»

£¨4£©If total investment is above USD 30 million, registered capital must be at least 1/3 of the total investment. If total investment is less than USD 36 million, registered capital must be at least USD 12 million.£»

£¨5£©Foreign funded companies that for whatever reason cannot meet the guidelines listed above should report to the Ministry of Commerce, and any corresponding modifications must be jointly approved by the Ministry of Commerce and the State Administration of Industry and Commerce.