Shareholders of a limited liability company set up a new company. Is it better to invest in your own name or in the name of the company?

In the process of enterprise expansion, whether from the perspective of risk isolation or tax planning, the company shareholding model is superior to the individual shareholding model. There are differences between individual investment and company investment in income tax, capital adequacy ratio obligation and tax when profits are transferred to registered capital. Let's look at each case:

I. Differences in income tax on investment dividends

Natural person A intends to make financial investment in Company A (for the purpose of dividends, not participating in or less participating in specific operation and management). There are two ways to invest: first, natural person A invests in Company A in his own name; In the second way, natural person A establishes a platform company and invests in Company A together with the platform company.

If the investment is made in the first way, when Company A distributes profits to natural person A, according to the current laws, natural person A needs to pay personal income tax, which is generally 20% of dividend income. In this way, the problem of double taxation arises. When Company A pays enterprise income tax and distributes profits to individual shareholders, individual shareholders have to pay individual income tax.

If the investment is made in the second way, when Company A distributes profits to the platform company, the platform company generally does not need to pay enterprise income tax on the dividend income.

Second, the differences in capital adequacy obligations.

Case 1

Natural person A contributed to establish Company A, and due to business needs, he subscribed the registered capital of100000 yuan, paid-in capital of100000 yuan, and the remaining 9 million yuan was not paid in full. Company A was badly managed, and its foreign debt reached100000 yuan, which declared Company A bankrupt.

Legal liability of natural person A for the above debts: According to the law, the registered capital subscribed by natural person A expires in advance, and natural person A is obliged to pay off the debts of the above company A with his personal property of 9 million yuan.

Tax differences when profits are transferred to registered capital.

Case 1

Natural person a control platform company. Platform Company 100% holds the shares of Company A ... The undistributed profit of Company A is RMB 654.38+million. It is planned to use the above undistributed profits to increase the registered capital of Company A. ..

Legal consequences: the act of increasing registered capital does not need to pay enterprise income tax.