Minimum Capital Requirements -

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Author	Topic: Minimum Capital Requirements
Christoph	posted 11 July 2005 10:53 AM Hi all, I know the topic has been discussed before, but I'm still not sure if I have the right numbers because I've heard different numbers depending on the source. It has been mentioned in this forum that the capital requirements are as follows: 1. for a company mainly engaging in production operation, RMB 500,000 2. for a compnay mainly engaging in wholesale, RMB 500,000 3. for a company engaging in retail sales, RMB 300,000 4. for a company engaging in technology development, consulting and services, RMB 100,000 My question: Do these numbers apply to domestic companies only or also to wholly-owned foreign enterprises? What about Sino-foreign Joint Ventures? Also, is a Chinese citizen allowed to hold shares in a foreign company (e.g. a Hong Kong or overseas company) which in turn has a wholly-owned Chinese subsidiary, branch or representative office? Background of my question: I'm from Germany and I want to set up a business with a partner in Shanghai. We're still trying to find out the best way for the corporate setup (low minimum capital requirements and low costs associated with the founding). We're also looking for a good lawyer to help us realize that solution, please feel free to contact me at cjanzNOSPAM@web.de. Best regards
Moderator	posted 15 July 2005 06:37 PM The minimum registered capital quoted above is correct for a limited liability company of either domestic or foreign invested enterprises. There are no citizenship restrictions on share holdings. For more information on investing in Shanghai, please consult some government and related websites for the Municipality and click here for details.
Simon	posted 15 July 2006 12:00 PM I guess people may check this link to get the latest information about Registered Capital. As we experienced in Shanghai, government has relaxed the stricted policy of Registered capital. You can visit this link to get the information about registered capital: http://www.pathtochina.com/reg_wfoe.htm
Joe	posted 25 September 2006 11:09 AM What is the minimum requirement for opening a limited company in China.
james	posted 25 September 2006 01:52 PM Joe, in China, th minimum registered capital of limited company varies from the different business nature. Like Wholly Foreign Owned Enterprises, they have Consulting WFOE, Retailing WFOE, Trading WFOE..etc. They are all limited companies but the minimum registered capital of them is RMB100,000, RMB300,000 and RMB500,000 corresondingly. Please provide more for further discussion.
Moderator	posted 05 October 2006 10:29 AM There are some additional postings in this Forum on the subject of minimum capital requirement for setting up a trading company in China. Please click here for information.
jonathan zhang	posted 07 October 2006 10:37 AM Christoph, I tried to send you detailed answer to your questions, but it seems your email is not working, it were bounced back each time I tried. Please write to me so that I can click back. Our details can be found from our website: www.ohiti.com I am a lawyer and consultant in China, helping overseas companies doing business and investment in China: jonzhang2005@gmail.com
Felix Lai	posted 07 November 2006 04:56 PM The minimum registered capital depends largely on the your feasibility study report (like a business plan). According to the company ordinance, the min is RMB300k. However, in Shanghai, we recommended that the registered capital to be at around RMB800k-1M. Should you need more information, you can contact me at felix@goldsac.biz
Moderator	posted 02 December 2006 03:28 PM According to the Interim Measures Concerning the Ratio of Registered Capital to Total Investment of Sino-Foreign Equity JV Enterprises promulgated by the State Administration for Industry and Commerce (SAIC), it is stipulated that: (a) For JVs with a total investment of US$3 million or less, the registered capital should account for at least 70% of the total investment; (b) If the total investment is over US$3 million but less than or equal to US$10 million, the registered capital should account for at least 50% of the total investment; the registered capital should not be less than US$2.1 million if the total investment is under US$4.2 million; (c) If the total investment is over US$10 million but less than or equal to US$30 million, the registered capital should account for at least 40% of the total investment; the registered capital should not be less than US$5 million if the total investment is under US$12.5 million; (d) If the total investment exceeds US$30 million, the registered capital should account for at least one-third of the total investment; the registered capital should not be less than US$12 million if the total investment is under US$36 million; (e) If an FIE is unable to fulfil the above requirements due to special circumstances, it may apply for special treatment to the Ministry of Commerce (the former Ministry of Foreign Trade and Economic Cooperation), which will approve the case jointly with SAIC.
smith in China	posted 14 December 2006 06:01 PM Representative Office is an efficient way to have your business in China. You could check this site for the details information about Rep. Office set up in Shanghai: http://www.pathtochina.com/reg_ro.htm They sent me a guide book about set up a Rep. Office in China which is helpful.
Guanming Fang	posted 29 December 2006 10:41 AM I understand that by statute, the minimum registered capital for a limited liability company is RMB 30,000 yuan. I also understand that the actual minimum registered capital required for companies with foreign investment is much higher, depending on the location of the company, in order to get approval. Can someone shed some light on how much registered capital is needed to form a Chinese-foreign equity joint venture in Guangdong Province? Thank you.
Michelle He	posted 02 January 2007 09:30 AM Guanming Fang：according to the latest mandate of China, the minimum register capital for a Chinese-foreign joint venture equity has been unified to RMB30,000 yuan. Possibly there are different polices in different provinces. For detail information, you can inquiry the register department of the industrial and commercial bureau of Guangdong, If you need more legal knowledge or information relating to investing in mainland China, please visit our website: www.huayilawyers.cn
Jonathan Zhang	posted 04 January 2007 04:44 PM As for detailed information on how to set up Rep Office, how to set up WOFE, etc. in China, I can provide pdf files upon email request. We are professional consulting companies: www.ohiti.com
name supplied	posted 06 November 2007 10:44 AM I would like to open up a foreign enterprise in sz or gz to import toys/models. This company will also do wholesales and retails. What's the min. registered capital for such company?
Flora Elli	posted 08 November 2007 08:48 AM Why Chinese company Law requires different levels of Capital for different kinds of Business?
Moderator	posted 11 November 2007 05:17 PM replying to [name supplied and Flora Elli] The Company Law specifies the minimum capital requirement of a limited liability company can range from RMB 30,000 to RMB 500,000 for a foreign invested enterprise. The minimum registered capital requirement can vary from one municipality to another and depend on the size and operation of the business activity, and subject to approval by the local trade and investment bureau. Please also see another entry on the same subject in the SME Forum.
LiRun	posted 13 November 2007 04:59 PM I am planning to set up a consulting WOFE. I understand there is a difference between the minimum registered capital in theory and in practice. Facts show that public officers do not easily accept applications with capital less than 100000 USD for trading WOFE. Are consulting WOFE cheaper? If yes, what is a reasonable capital? thanks
Moderator	posted 20 November 2007 11:28 AM The minimum registered capital for a foreign invested company in consulting business is 100000 RMB.
karen	posted 03 April 2008 11:21 AM I want to know, as a foreigner, how to open jewelry stores in china , what is the capital requirement of setting them up and what else I have to know?
Simon	posted 03 April 2008 04:06 PM You mentioned that "The minimum registered capital for a foreign invested company in consulting business is 100000 RMB." It really depands, for instance: : It's OK to set up a consulting WFOE with RMB 100,000 registered capital in Beijing. We have clients did so in Haidian, Chaoyang, Dongcheng districts. While in Xuhui, Huangpu, HongKou, Luwan etc most of the districts in Shanghai now have problems to get this RMB 100K company approved since Oct. 2007 and Pudong district is still possible to set up such company. You could check this link and see the latest information on registered capital: http://www.pathtochina.com/regcompany.htm Simon
Moderator	posted 29 April 2008 08:32 AM for Karen 3 Apr: The minimum registered capital for setting up a service company is RMB 30000. However the requirement is subject to the scope and size of operation. You may wish to refer to the special website on jewellery and watches industry verticle provide by the TDC, and find a lot of information on China market for such products.
Gratin	posted 20 May 2008 10:42 AM After having registered a consulting WFOE what is the monthly cost for it? Let's say in the first year I can cover just my costs, perhaps 15000 RMB/month.
bill	posted 27 June 2008 10:17 AM Minimum Capital Requirement game in various regions? I am interested in setting up a Trading Wofe for consumer electronics in China. To set up in Shanghai you need about 140.000 USD, Guangzhou 200.000 USD. I heard some regions have lower capital requirements in order to attract investors. What about Yiwu, and other regions? I also understood that if no export licence, (no VAT claim) capital requirements are lower. Is it true ?
Simon Xu	posted 28 June 2008 11:42 AM USD1.2M？ Incredible! coz i am in Shanghai, as i remember the Min. capital is also RMB500,000.00 for setting up a FICE.
Momand	posted 24 March 2009 11:34 AM What is the registered capital in it self ? is this a money which we should run a business on it or is this a money that we should give to chinese government to approve our license and etc please need help thanks
Moderator	posted 06 May 2009 03:15 PM Aprproved foreign invested enterprises are required to specify in their joint venture contract and articles of association the time limit for capital contribution before the enterprise can be registered and company bank account opened. Capital contribution may be made in two ways: 1) one-off contribution, and 2) contribution by instalment. Registered capital contribution is subject to stringent regulation and supervision. It must be duly contributed within the time limit stipulated in the company’s joint venture contract and articles of association and is subject to the relevant regulations of the Ministry of Foreign Trade and Economic Cooperation that provides mandatory time limits for the contribution of different levels of registered capital.

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