Capital increase of a company means that the company increases according to law.

Capital increase of a company refers to the act of increasing the registered capital of the company according to law. According to the relevant provisions of Chapter IX of the Company Law of People's Republic of China (PRC), capital increase of a company refers to the act of increasing registered capital in accordance with the law in order to expand its business scale, broaden its business and improve its credit standing.

The company's capital increase is divided into two situations:

A. Passive capital increase of enterprises-register 20% of the companies first, and make up the remaining 80% of the registered capital within two years after registration; Some projects need funds.

B. Enterprises actively increase capital-if the paid-in capital of the enterprise is consistent with the registered capital, the enterprise will increase the registered capital through capital increase.

Extended data

According to Article 177 of the Company Law, 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.