The advantage of reducing registered capital is that it reduces unnecessary advance payment. At the same time, it also lightens the responsibility of the company once it goes bankrupt. In the annual inspection, enterprises with less registered capital are easy to clear customs, while enterprises with less registered capital for industry and commerce and taxation are not easy to attract attention. Registered capital corresponds to limited liability, and the company will bear as much responsibility as the registered capital. Moreover, some business areas need a certain registered capital. If the registered capital is large, it will gain the trust of customers, because the limited liability is large.
Two. The conditions for capital reduction of the Company are as follows:
The company's capital reduction, regardless of whether the surplus capital is lower than the legal standard, must comply with the law. In order to effectively implement the principle of capital determination and ensure the safety of transactions, capital reduction should be strictly controlled by law. According to the principle of constant capital, the company's capital is not allowed to be reduced in principle. Considering some specific circumstances, China's laws allow capital reduction, but certain conditions must be met. From the actual situation, one of the following conditions should be met:
1, the company has too much money.
The original company had too much capital and too much formal capital. If the capital remains unchanged, it will lead to idle and waste of capital in the company, which is not conducive to capital efficiency and increases the burden of dividends.
The company suffered heavy losses.
The company suffered serious losses, and the gap between total capital and actual assets was too large. The company's capital has lost its due legal significance to prove the company's credit status, and shareholders have not been rewarded for the company's losses for years.
Three. The company's capital reduction registration materials are as follows:
1, investor application; (original)
2. Resolution of the board of directors of the enterprise; (Subject to unanimous approval of the board of directors) (original)
3. Capital reduction agreement of all shareholders (sole proprietorship enterprise decides to reduce capital); (original)
4. Contracts, articles of association modification agreements (non-wholly-owned enterprises) or articles of association modification decisions (wholly-owned enterprises) signed by the legal representatives of all shareholders; (original)
5. Audit report verified by certified public accountants in China (including balance sheet, property list and creditor list); (original)
6, the national tax and local tax departments according to the normal tax situation; (original)
7. Description of debt settlement or debt guarantee; (Signature and Seal of Chairman) (Original)
8. Announcement of capital reduction of newspapers at or above the provincial level; (original)
9, notify the creditor receipt; (original)
10, a copy of the capital verification report;
1 1, the audited financial statements of the enterprise in the previous year;
12, copy of business license and original approval certificate;
13, original enterprise contract articles of association and its reply;
14, other materials required by the examination and approval authority.
The above information is catalogued and bound into a book. 5. The format of the company's capital reduction announcement and the materials required for the newspaper announcement ×× the company's capital reduction announcement.
The registered capital of the company is reduced from 1 ten thousand yuan to 1 ten thousand yuan by the decision of the shareholders' meeting (investor). Creditors are requested to have the right to ask the company to pay off debts or provide corresponding guarantees within 30 days from the date of receiving the written notice from the company, or within 45 days from the date of this announcement if they have not received the notice. If it is not submitted within the time limit, it shall be deemed that it has not made a request.
The announcement of capital reduction in newspapers must be handled by local municipal public newspapers and periodicals.
To sum up, the company's capital reduction means that the company's registered capital will be reduced. Generally speaking, as long as the capital is reduced, the company's responsibility will be smaller and the tax inspection will be easier to pass. Therefore, when reducing capital, we need to combine the procedures prescribed by law to protect the legitimate rights and interests of our company.
Legal basis:
Article 177 of People's Republic of China (PRC) 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.