How to distribute the equity of small enterprises

Legal analysis: the equity of small enterprises should be distributed in this way: if the parties want to own the equity of the company, they must invest in the company before they can become shareholders of the company, so as to own the equity. Now the company's capital contribution can take the form of subscription, so when distributing the equity, they can distribute it directly according to the subscribed capital contribution. When a shareholder makes a capital contribution, how much capital contribution is subscribed, that is, how much equity he owns. Generally speaking, the equity of small enterprises can be directly distributed through shareholders' contribution, and shareholders can own as much equity as they contribute.

Legal basis: Article 28 of the Company Law of People's Republic of China (PRC), shareholders shall pay their subscribed capital contributions in full and on time in accordance with the articles of association. Where the shareholders make capital contributions in cash, they shall deposit their capital contributions in full into the account opened by the limited liability company in the bank; Where non-monetary property is used as capital contribution, the formalities for the transfer of property rights shall be handled according to law. Where a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, he shall be liable for breach of contract to the shareholder who has paid the capital contribution in full and on time.