The act of increasing registered capital in accordance with the law in order to expand the scale of operation, broaden business and improve credit standing, and increase capital for the company. But each company will choose its own capital increase method according to its own situation. What are the ways to increase its capital? Please follow me next.
1. What are the ways for the company to increase capital?
The ways of capital increase mainly include increasing face value, increasing capital contribution, issuing new shares or debt-to-equity swap.
1, increase the face value
Increasing the face value means that the company increases the amount of each share without changing the original total number of shares. In this way, the purpose of capital increase can be achieved. For example, statutory reserve fund, dividends to be distributed and newly paid shares by shareholders can all be recorded in each share, thus increasing its face value.
2. Increase investment.
Where a limited liability company needs to increase its capital, it may increase its capital contribution in proportion to the original shareholders, or invite others other than the original shareholders to contribute. If the original shareholders subscribe for the capital contribution, they may increase their shares or convert the capital reserve fund or dividend payable into capital contribution.
3. Issue new shares
A joint stock limited company may increase its shares by issuing new shares. Issuing new shares refers to the company issuing new shares in order to expand the capital demand. The issuance of new shares can be publicly offered to the public or subscribed by the original shareholders. Under normal circumstances, the original shareholders of the company enjoy the preemptive right.
4, debt-to-equity swap
A joint stock limited company can also increase its shares by converting convertible corporate bonds into company stocks. Convertible corporate bonds are bonds that can be converted into company stocks. If this bond is converted into company stock, the liabilities will be eliminated and the company's share capital will increase.
2. What materials should be submitted for the company's capital increase?
List of materials required for increasing registered capital:
1, original business license;
2. The original organization code;
3. Original tax registration certificate;
4. Official seal, financial seal and name seal;
5. Original legal person ID card;
6. Original articles of association;
7. A copy of the original capital verification report;
8. Original account opening permit.
In the process of capital increase, some people will contribute in cash, while others will choose to contribute in kind. For this part of the capital contribution company, it is necessary to check whether there is mortgage or guarantee, and make sure that the capital contribution shareholders have ownership of the property they have contributed, otherwise it is a false capital contribution to the company. If the company encounters these problems, it is best to ask professional lawyers to help urge shareholders to contribute capital or collect evidence directly to go to court.