The dangers of excessively high company subscription capital. my country currently implements a registered capital subscription system. The subscription system means that the registered capital does not need to be paid in full at the beginning, but only within the promised time limit (usually 10-20 years). ) has been paid in full, which greatly reduces the financial pressure when registering a company.

The following are the dangers of too high company subscription funds that I have carefully compiled. Everyone is welcome to learn from and refer to them. I hope it will be helpful to everyone.

The harm of a company's subscribed capital being too high: 1. Under the subscription system, the falsely high subscribed capital is no longer a reflection of the company's strength; it must be remembered that the larger the registered capital, it means that the company has to bear greater responsibilities.

Registering a company in Guangzhou is the first step to start a business.

Generally speaking, the company registration process includes: company name verification → submission of materials → license → seal engraving, then the company registration can be completed and the business can be started.

However, if the company wants to officially start operations, it still needs to complete the following matters: opening a bank account → tax registration → applying for tax control and invoices → opening a social security account.

Some people may think that having more registered capital will give the outside world a stronger impression in business dealings.

However, the company's strength becomes clear when partners conduct on-site inspections.

Therefore, the idea of ??increasing the company's strength by increasing the amount of registered capital is not advisable.

2. If the subscribed capital is inflated, the legal risk will be greater; subscribing does not mean not paying, it just means that the payment can be temporarily postponed in the early stage of starting a business. The articles of association stipulate that the registered capital must be paid in full within 20 years.

Guangzhou company registration operation: After passing the name verification, confirm the address information, executive information, business scope, and submit a pre-application online.

After passing the online pre-examination, go to the Industrial and Commercial Bureau to submit application materials according to the appointment time.

Proof of registered address of a Guangzhou company. If the house is rented, a copy of the real estate certificate signed by the landlord, a copy of the landlord's ID card, a lease contract signed and sealed by both parties, and a rent invoice are required; if the office building is rented under the name of a company, the company is required.

A copy of the real estate certificate with official seal, a copy of the company's business license, a lease contract signed and sealed by both parties, and a rental invoice.

The subscription system does not change the relevant provisions on shareholders’ liability for the amount of capital they subscribe.

For example, if a company needs to apply for bankruptcy liquidation due to poor business management during the company's operation.

If after the company is liquidated, the company still has a debt of 1 million that cannot be repaid. At this time, if the company's registered capital is only 500,000, then the shareholder's repayment amount only needs to repay 500,000. If the company's registered capital is 1 million, it needs to repay 1,000,000.

Ten thousand.

It can be seen from this that if the registered capital is inflated and the shareholders themselves are not able to bear it, they will fall into unnecessary difficulties.

Types of registered companies: 1. Limited liability company.

An economic organization established with capital contributions from less than fifty shareholders. Each shareholder bears limited liability for the company based on the amount of capital subscribed. The legal person of the company bears full responsibility for the company's debts with all its assets.

Applicable situation: The type of enterprise suitable for entrepreneurship. Most investment and financing plans, VIE structures, etc. are designed based on limited liability companies.

Note: For start-ups, "limited liability company" is currently the most suitable.

Type of enterprise, for the following reasons: (1) Shareholders of a limited liability company only need to bear "limited liability" limited to the amount of their capital contribution, which legally separates the company's and personal properties, which can avoid entrepreneurs from taking unnecessary risks.

Financial risk.

(2) A limited liability company has low operating costs, few institutional settings, and a simple structure, which is suitable for the initial development stage of the enterprise.

(3) Currently mature angels and VCs almost all design investment plans based on "limited liability companies".

Directly registering a "limited liability company" will make the process of introducing investment in the future smoother.

2. Co., Ltd.

It consists of more than 2 but not more than 200 promoters. The company's entire capital is equal shares, and shareholders are liable for the company to the extent of the shares they hold.

Applicable situation: Applicable to mature and large-scale companies, the establishment procedures are relatively strict and complex, and not suitable for start-ups and small, medium and micro enterprises.

Such as: China National Petroleum Corporation (CNPC).

3. Limited partnership.

It is composed of general partners and limited partners. The general partners bear unlimited joint and several liability for the debts of the partnership, and the limited partners bear limited liability for the debts of the partnership to the extent of their subscribed capital contributions.

Applicable situations: Applicable to venture capital funds and company equity incentive platforms (employee stock ownership platforms).

4. Wholly foreign-owned companies.

Foreign companies, enterprises, other economic organizations or individuals, enterprises established in China in accordance with Chinese laws with all capital invested by foreign investors.