It is common for a company to increase its registered capital, because the scale of the company will sometimes expand, so it is necessary to increase its registered capital.
I. Legal Consequences of Capital Increase and Share Expansion
When a limited liability company increases its registered capital, the contribution of the newly-increased capital subscribed by shareholders shall be implemented in accordance with the relevant provisions of this Law on the contribution of limited liability companies. When a joint stock limited company issues new shares to increase its registered capital, shareholders shall subscribe for new shares in accordance with the relevant provisions of this Law on the establishment of a joint stock limited company and the payment of shares.
Where a company is merged or divided and its registered items change, it shall register the change with the company registration authority according to law; If the company is dissolved, it shall go through the cancellation of registration according to law; Where a new company is established, it shall be registered in accordance with the law.
Where a company increases or decreases its registered capital, it shall register the change with the company registration authority according to law.
Two. Measures to reduce subscribed registered capital
First, reduce the examination and approval of investment projects, minimize the scope of examination and approval, approval and filing, and effectively implement the investment autonomy of enterprises and individuals. For projects that really need approval, approval and filing, the procedures should be simplified and completed within a time limit.
At the same time, in order to avoid repeated investment and disorderly competition, it is emphasized to strengthen the management of land use, energy consumption and sewage discharge, and give play to the binding and guiding role of laws and regulations, development planning and industrial policies.
Second, in accordance with the principle of administrative examination and approval system reform, reduce the examination and approval items of production and business activities, minimize the licensing of production and business activities and products and articles, and minimize the non-licensing examination and approval of various institutions and their activities.
The third is to reduce the qualification license, and all those that do not meet the requirements of the administrative licensing law will be cancelled; In accordance with the provisions, enterprises, institutions and individuals need to be graded, which shall be determined by the relevant industry associations and societies.
Fourth, reduce administrative fees, cancel illegal and unreasonable administrative fees and government fund projects, lower fees standards, and establish and improve the government non-tax revenue management system.
Third, the difference between registered capital and paid-in capital.
Registered capital refers to the investment intention indicated when the enterprise is established or when additional investment is made, that is to say, how much investment. However, because the registered capital may not be in place at one time, the registered capital may not be received in full. The received part of registered capital is called paid-in capital. Their relationship is paid-in capital+unpaid capital = registered capital.
Legal objectivity:
Company Law of the People's Republic of China
Article 34
When a limited liability company increases its capital and shares, the shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution, unless otherwise agreed by the parties. In the case that the new shareholders contribute to the shares, the old shareholders also need to declare that they will give up all or part of their priority subscription.