Procedures for capital increase of wholly-owned subsidiaries by parent companies

Legal analysis: The process of the parent company's capital increase for its wholly-owned subsidiary is to hold a shareholders' meeting, then apply to the commercial department and the foreign exchange administration department, and at the same time open a capital verification account and issue a capital increase verification report to the industry and commerce. As long as the process stipulated by law is followed, then only in this way can the capital increase be successful.

Legal basis: Article 76 of the Civil Law of People's Republic of China (PRC) is a profit-making legal person. For-profit legal persons include limited liability companies, joint stock limited companies and other corporate legal persons.