Legal basis:
company law
Article 179 When a limited liability company increases its registered capital, the contribution of the newly-increased capital subscribed by shareholders shall be implemented in accordance with the relevant provisions of this Law on the contribution of limited liability companies.
Article 26 The registered capital of a limited liability company is the capital contribution subscribed by all shareholders registered with the company registration authority. The initial capital contribution of all shareholders of the company shall not be less than 20% of the registered capital, nor less than the statutory minimum registered capital, and the rest shall be fully paid by shareholders within two years from the date of establishment of the company.
Extended data:
Materials required for capital increase
1) Application for registration of enterprise change signed by the legal representative of the company;
Including the application form of enterprise change registration, the changed list of unit investors (unit shareholders and promoters) and the changed list of natural person shareholders (promoters).
The list of investors and partners of the sole proprietorship enterprise, the payment of registered capital (registered capital and contribution amount) of the investors after the change, the registration form of the legal representative of the enterprise, and the employment certificates of the board members, managers and supervisors, etc.
2) The shareholders' meeting or the board of directors makes a resolution on capital increase and share expansion;
3) Letter of appointment (power of attorney) signed by the legal representative of the company and a copy of the client's ID card;
4) Original and photocopy of the Business License of Enterprise as a Legal Person;
5) If the capital is increased in cash, a capital verification report issued by a statutory capital verification institution shall be submitted; If the capital is increased by non-monetary means, an evaluation report and a report from a statutory capital verification institution to verify the evaluation results and handle the formalities of property right transfer shall also be submitted;
6) amendments to the articles of association or corresponding revised articles of association;
7) Investment agreement (capital increase and share expansion agreement);
8) Qualification certificate of new shareholders (i.e. a copy of new shareholder's ID card or business license with official seal).
Benefits of capital increase
1. It solves the difficulty for enterprises to invest all monetary funds, and can free up some monetary funds for the daily operation of enterprises or continue to develop new technologies;
2. A legal person organization or natural person who owns intellectual property rights but does not have enough funds to operate can invest its intellectual property rights in the company through joint ventures and cooperation with others to realize the market-oriented operation of its intellectual property rights and control the company's equity;
3. Solve the market requirements for registered capital when enterprises bid for projects;
4, enterprises in the application for scientific research projects or declare special funds, the value of technical assets requirements;
5. Show the scale and strength of the enterprise in foreign economic activities, and enhance customers' intuitive impression of the enterprise;
6. Enterprises can capitalize on intellectual property rights;
7. It can help enterprises avoid taxes reasonably.
Baidu Encyclopedia-China People and China Company Law