What is the relationship between paid up capital and registered capital?

The registered capital is the capital of the enterprise declared when applying for registration with the Industrial and Commercial Bureau.

Paid-up capital is the amount of capital actually received by the enterprise. It stands to reason that the two are the same, in the past, it was necessary to register after all the capital verification was in place, but in order to take care of the enterprise, the threshold for applying for the enterprise was lowered, and now the capital is allowed to be distributed in place, which is the case with you. Their relationship is as follows:

Paid-up capital + unpaid-up capital = registered capital.

The registered capital is the number of investment plans, which can be paid in batches within two years, and the paid-in capital is the actual investment received, which is included in the registered capital, and the amount of paid-in capital may be less than the amount of registered capital in two years, and the amount of paid-in capital should be equal to the amount of registered capital when it is full of two years.

Learn accounting practice and professional title courses with the CPA system, from theory to practice, from zero foundation to financial director, and enhance your value!

Answer: Registered capital is the authorized capital when you register with the Industrial and Commercial Bureau, it is expressed in the balance sheet as "paid-in capital", if it is in place, paid-in capital = registered capital, if it is not in place, it is expressed in terms of actual value.

Paid-in capital refers to the capital actually invested by the investor in the enterprise in accordance with the articles of association or contract and agreement, which is the total authorized capital registered by the enterprise, which indicates the basic property rights relationship of the owner to the enterprise. Registered capital, also known as authorized capital, is the amount of capital contribution subscribed or the total amount of share capital subscribed by all shareholders or promoters as stipulated in the articles of association of a company-based enterprise, and is registered with the company registration authority in accordance with the law. However, not at all points in time, the registered capital is necessarily equal to the "paid-in capital" in the accounting book, and there are other exceptions as follows:

1. When the enterprise can take the capital in stages, the "paid-in capital" of the accounting book of the enterprise is the registered capital. 2. When the enterprise has increased its capital and has not completed the change registration, the "paid-in capital" of the accounting book of the enterprise shall be the registered capital. According to the normal procedure, if an established enterprise wants to go through the registration of capital increase change, the shareholders should first pay the share payment (investment in kind, etc.), and the finance department will handle the capital increase accounting according to the investment payment slip (physical handover order, etc.), and then the enterprise will go to the industrial and commercial department to handle the change registration with the resolution, approval document and capital verification report related to the capital increase.

Registered capital is a mandatory requirement stipulated in the law, while paid-in capital is the result of the enterprise complying with the law in actual business, the two are not the same concept, but under the current system, they are equal in amount. The registered capital is the capital raised by the company at the time of establishment, specified in the articles of association, and registered by the company registration authority, and the amount of capital contribution subscribed or subscribed by shareholders. Paid-up capital is the total amount of capital actually received from shareholders when the company is established, and it is the capital that the company actually owns.

Since the company can pay all the shares at once or in installments after subscribing for shares, the paid-in capital may be less than the registered capital for a certain period of time, but the registered capital of the company and the paid-in capital should ultimately be consistent.

Registered capital and paid-in capital are two important concepts in finance, and a company should be verified when it is established, so do you know what is the relationship between registered capital and paid-in capital?

1. Under normal circumstances, the registered capital and the paid-in capital are the same. However, the two are not the same concept, registered capital is a term of business administration, which is a legal registration requirement for company registration, and paid-in capital is the capital actually invested, but under the current system, they are equal in amount. There are the following differences between registered capital and paid-up capital.

2. The regulations are different. The registered capital of industrial and commercial inspection is as much as it is, and not a dime less; There is generally a gap between the paid-up capital and the registered capital. When the actual capital of an enterprise increases or decreases by more than 20% compared with the amount of the original registered capital, it shall apply to the original registration authority for change of registration with the certificate of use of funds or the certificate of capital verification.

3. The use is different. The composition ratio of paid-in capital is the basis for determining the owner's participation in the financial operation decision-making and distribution of profits, and is the basis for the owner's claim to net assets when the enterprise is liquidated. After the registered capital is verified in the company, it must first be used for capital verification, and the business license can only be applied for after capital verification.

Paid-in capital refers to the total amount of capital actually paid by shareholders after the company is registered, that is, the actual amount of registered capital. Registered capital refers to the statutory minimum capital amount at the time of company registration. Therefore, the relationship between paid-up capital and registered capital is that paid-in capital cannot be lower than registered capital.

When the company is registered, it is necessary to indicate the amount of registered capital in accordance with the law, so as to reflect its legal operation and assume the business and responsibilities that may be involved. The registered capital is the minimum amount of capital that the company promises to the state and the public at the time of registration. The paid-in capital is the total amount of capital actually paid by shareholders, which is the basis for the legal existence and performance of responsibilities of the company.

The relationship between paid-in capital and registered capital is that paid-in capital cannot be lower than registered capital. That is to say, the minimum capital amount determined at the time of company registration must be actually paid by shareholders, and capital injection must be carried out after the establishment of the company to form actual investment funds to ensure the normal operation of the company.

When the paid-in capital is higher than the registered capital, the excess belongs to the company's own capital, also known as capital reserve. Capital reserve is formed by the company through equity financing and surplus accumulation in the process of operation and development, which can be used to make up for the company's losses or expand the company's scale.

Difference Between Registered Capital and Paid-up Capital:

1. Different concepts: registered capital is a term of business administration and a legal registration requirement for company registration, while paid-in capital is the investment of an enterprise in accordance with the law in actual business, and the two are the legal provisions of the investment contract and the articles of association of the company, which are different expressions of a transaction.

2. The amount of the two is different: the registered capital adopts the subscription system, that is, the installment payment at the agreed time, and the registered capital may be less than the paid-in capital when the general company is registered. However, under normal circumstances, the registered capital paid is the paid-in capital, and it is also truthfully registered.

3. The legal effect is different: the registration of paid-in capital is the approval of the legal person, after the enterprise has carried out relevant acts; The registered capital is a determination of the solvency and responsibility of the enterprise, both of which are legally liable.

Article 2 of the Administrative Provisions on the Registration of Registered Capital of Companies stipulates that the registered capital of a limited liability company shall be the amount of capital contribution subscribed by all shareholders registered with the company registration authority in accordance with the law.

If the shares are established by initiation, the registered capital shall be the total amount of share capital subscribed by all the promoters registered with the public oak Bisi registration authority in accordance with the law.

If the shares are established by way of raising and established, the registered capital shall be the total paid-in share capital registered with the company registration authority in accordance with the Liang Zhiqin Law.

If laws, administrative regulations and decisions stipulate that the registered capital of the company shall be paid-in, the registered capital shall be the amount of capital contribution or the total paid-in share capital of the shareholders or promoters.

There are the following differences between registered capital and paid-in capital:

a) The concept is different.

Registered capital is a term of business administration, which is a legal registration requirement for company registration, while paid-in capital is the investment of an enterprise in accordance with the law in actual business.

2) In terms of specific time, the amount of the two is different.

Because the registered capital in the New Company Law adopts the subscription system, that is, the installment payment at an agreed time, the registered capital may be less than the paid-in capital at the time of general company registration. However, under normal circumstances, the registered capital paid is the paid-in capital, and it is also truthfully registered.

3) Legal effect.

The registration of paid-in capital is an act of approval of a legal person, after the enterprise has carried out relevant acts; The registered capital is a determination of the solvency and responsibility of the enterprise, both of which are legally liable.

Specifically, the paid-in capital can be inconsistent with the registered capital, the registered capital is 1 million, and the actual injection of 300,000 yuan will be opened, but when the enterprise is liquidated, if the income from the purchase of property is not enough to pay off the debt, the owner must make up until it is 1 million.

There is a certain difference between paid-up capital and registered capital. When the company is registered, the enterprise needs to carefully choose the registered capital, and when the enterprise develops, the corresponding change of the registered capital will be carried out. Moreover, it should also be noted that the paid-in capital is equal to the registered capital in a period of time, so as to ensure the consistency of the registered capital and the paid-in capital.

The law is based on the law

Article 26 of the Company Law stipulates that the registered capital of a limited liability company shall be the amount of capital contribution subscribed by all shareholders registered with the company registration authority. Where laws, administrative regulations and decisions have other provisions on the paid-in registered capital and the minimum amount of registered capital of a company with limited liability, such provisions shall prevail.

Article 28 Shareholders shall pay in full and on time the amount of capital contributions subscribed by them as stipulated in the articles of association of the company. If the shareholder makes a monetary contribution, the full amount of the monetary contribution shall be deposited into the bank account opened by the limited liability company; Where non-monetary assets are used to make capital contributions, the formalities for the transfer of the right to model their property shall be completed in accordance with law. If a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, in addition to paying the full amount to the company, it shall also bear the liability for breach of contract to the shareholder who has paid the capital contribution in full on time.