In matters of foreign investments, legislative and regulatory texts define the concepts of “Registered capital” and “Total investment amount” as follows:
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“Registered Capital”: refers to the amount of capital subscribed by the foreign investor and recorded (noted) on the business license issued by the Administration of Industry and Commerce (AIC). This is the amount that the investor has committed to contribute to the WFOE.
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“Total Amount of investment”: refers to the total amount of funds can be invested by the foreign investor based on the operational needs of the project. The amount may be equal to the amount of the subscribed capital. It may also be greater than the subscribed capital, in which case, this amount includes a margin reserved for possible additional foreign financing that may be achieved through loans, within the limit of a ratio defined by law (see below).
Since the reform of company law on January 1, 2006, the minimum capitalization amount of a Chinese company has been set at 30.000 RMB.
Initial publication date: 26/01/2018