What is the capital increase and capital decrease process of Shanghai company?

For early entrepreneurs, when they first set up a company, they may not know much about the registered capital and have no concept. The registered capital is very large, tens of millions or even hundreds of millions, but also very small, tens of thousands or even less, and it is often increased or decreased because of business needs. How much registered capital should be written? Please refer to several small questions that you should know before registering a company!

Today, a brief description of the capital increase and capital decrease processes may be helpful to you in need.

Capital Increase-Materials, Processes and Results

(1). Required materials: copy of original license, official seal, application for company registration (filing) (hereinafter referred to as application), shareholders' decision (taking a one-person limited liability company as an example), new articles of association or amendments to articles of association, and manager's identity certificate.

(2) Specific process: determine the registered capital increase and make three change documents: application, articles of association or amendments to articles of association, and shareholders' decision (taking a one-person limited liability company as an example), as shown below:

Shareholders' decision-making style

Application part

Articles of association will not be displayed. The articles of association and the shareholders' decision shall be signed by the shareholders, and the application shall be signed by the legal person. The handwriting should be the same as that at the time of registration, and the official seal should be affixed at the relevant position. All materials in (1) should be collected and submitted to the industrial and commercial window for review.

(3). Time result: It takes about 3-5 working days, and all the signed documents can be used. You can get a new license in 3-5 working days.

Capital Reduction-Materials, Processes and Results

(1). Required materials: original license, official seal, application, shareholders' decision (taking a one-person limited liability company as an example), new articles of association or amendments to articles of association, debt settlement and guarantee statement, capital reduction announcement newspaper, and administrator's identity certificate.

(2) Specific process: determine the registered capital amount of capital reduction, make a set of documents required for capital reduction, keep the application, shareholders' resolution, articles of association or amendments to the articles of association unchanged, and add a debt settlement and guarantee document (as shown below):

Notes on debt settlement and guarantee.

Shareholders' decision

The articles of association and application form are not presented, and the shareholders and legal persons sign the relevant documents and affix their official seals. Unlike capital increase, because capital reduction means that the company's liabilities are reduced, if there are debts before capital reduction, they still need to be paid off and publicized. Therefore, the shareholders decided to notify the creditors within 10 days from the document date, and publish a capital reduction announcement in the newspaper within 30 days, and only after 45 days from the newspaper announcement can they carry (1) all the information in the industrial and commercial window for review.

(3) Time result: About 50 days, no problem after signing the documents. The new license will be issued within three to five working days after submission.

As can be seen from the above, the whole process of capital reduction takes at least 50 days from the shareholders' decision to the new license, so capital reduction is more complicated than capital increase.