Capital increase of a company refers to the act of increasing the registered capital of the company according to law. There are two main ways: one is to increase the share capital, and the other is to increase the capital reserve. Increasing the share capital means that the company increases the total share capital by issuing new shares or shareholders' contribution, thus increasing the registered capital of the company.
Increasing capital reserve refers to the company's conversion of capital reserve formed by profit and asset appreciation into equity, thus increasing the company's registered capital.