The minimum requirement for registered capital is RMB 30, 000 (USD 4, 950). Under the company’s laws the paid-up capital is equal to the registered capital. Investors and shareholders must contribute the full amount of registered capital and deposit the money into a specified bank account in the name of the WFOE.
In case of a service-type company in Shenzhen, the minimum registered capital required is RMB 100, 000 (USD 16, 400).
The investor has two options as to the timing for contribution of the registered capital.
– The investor can choose to contribute the capital in one installment within 6 months after the date of incorporation
– OR the investor could choose to do that in two installments within a period of two years. The first installment must be more than 20% of the registered capital and contributed within 3 months. The balance should be paid within 2 years after the date of incorporation.
Note: The amount of registered capital should be audited by a firm of certified public accountants. This is called contribution verification.