I. Provisions on Capital Increase and Capital Reduction of the Company
1. When the company reduces its capital, it must prepare a balance sheet and a list of assets, and notify and announce the creditors;
2. When the company increases its capital, the shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution.
3. Legal basis: People's Republic of China (PRC) Company Law.
Article 177
When a company needs to reduce its registered capital, it must prepare a balance sheet and a list of assets. The company shall notify the creditors within ten days from the date of making the resolution to reduce the registered capital, and make an announcement in the newspaper within thirty days. Creditors have the right to require the company to pay off debts or provide corresponding guarantees within 30 days from the date of receiving the notice, or within 45 days from the date of announcement if they have not received the notice.
Article 178 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.
2. What is the basic procedure for the company to increase capital?
1. Original and duplicate of business license, organization code certificate, tax registration certificate and account opening permit, in a4 format, in duplicate.
2. The original and photocopy of the ID card of the new shareholder, in a4 format, in duplicate, requiring the new shareholder to be present. If you can't be present, you need to issue a power of attorney, which must be signed by yourself for confirmation; The original resolution of the shareholders' meeting of the Company is in duplicate.
3. Add shareholder's private seal, company official seal, etc. To be on the safe side, bring all the company seals.
4 involving the change of the legal representative, it is necessary to provide the original and photocopy of the legal representative's ID card before and after the change.
5. After the bank's audit is correct, fill in the relevant account opening application materials according to the requirements of the bank, and the format text will be provided by the bank. If in doubt, you can consult on the spot.
6. All photocopies and application materials for account opening need to be signed and confirmed by new shareholders, and stamped with the official seal of the company.
7. After opening a temporary capital verification account, investment funds can be credited to the capital verification account in the name of new shareholders.
8. After all the new funds are received, the bank will issue relevant cash payment bills and incoming bills, which need to be signed by the bank manager and the bank.
9. According to the requirements of the firm, the bank is required to issue the bank balance statement of last month, the bank confirmation letter and the details of basic account's capital transactions, and the signature of the agent and the bank's signature are required.
Charge standard: cash only accepts bank confirmation letter, 200 yuan.
If the company needs to increase capital, it needs to go through the shareholders' meeting first, then it needs to make a capital increase plan and determine the capital increase method, and then it needs to bring all relevant materials to the bank to handle the temporary capital verification account. After that, you need to go to the company registration authority to register the change, and you need to make an announcement in an appropriate way.