What are the risks of too high registered capital when registering a company?

Updated on Financial 2024-05-12
11 answers
  1. Anonymous users2024-02-10

    In fact, there is no risk in registering a company itself, the risk is to operate a company, such as the company registration does not record accounts and file taxes on time, there will be fines, serious will be revoked, at this time back to affect the credit of legal persons and shareholders, can not go abroad, can not take trains and planes, can not register the company as a legal person or shareholder. Then there is the internal business risk of the enterprise, which is also risky because the manpower and fixed office expenses are too high, resulting in losses. If you don't want to register a company, you must cancel it.

    Otherwise, the potential risk is very high.

  2. Anonymous users2024-02-09

    The main risk of excessive registered capital is that all shareholders may not be obligated to subscribe. If the commitment period agreed between the company and the shareholders is longer, it will undoubtedly be conducive to the development of the company at this time. If the company makes a profit after completing the subscription obligation, any shareholder can participate in the annual dividend distribution.

    If you want to register a company, you can directly find Totoro Finance and Tax Agency to register.

  3. Anonymous users2024-02-08

    When registering a company, there is a risk of incurring debts if the registered capital is too high, and the limited liability company bears the corresponding obligations according to the registered capital.

  4. Anonymous users2024-02-07

    The registered capital of a registered company is the amount of limited liability borne by the shareholders. The higher the registered capital, the greater the liability. The registered capital should be reasonably determined according to its own risk-bearing ability and customer needs.

  5. Anonymous users2024-02-06

    Can a company with a small registered capital control a company with a high registered capital reduce the risk?

    Hello, first of all, a company with a small registered capital cannot wholly control a company with a large registered capital. A company with a small registered capital can only realize a part of the holding company on the basis of the registered capital, and a large company can be realized. At the same time, there is a subdivision in this:

    1. The holding company is a partnership or a sole proprietorship of an individual holding another limited company, and the holding company bears limited liability, which reduces the risk of the holding company. If the wholly-owned holding company is another partnership, it shall bear unlimited joint and several liability. The risk of liability has not been reduced; 2. The holding company is a wholly or partially owned partnership or a company, and bears limited liability with the amount of capital contribution.

    The registered capital subscription system refers to the system in which shareholders can not actually pay or only pay part of the subscribed registered capital when the company is registered, and the remaining part is paid within the time limit specified in the articles of association of the company (the articles of association can be agreed to be in place within 3 years or 30 years), and the shareholders bear legal liability to the extent of their subscribed capital contributions. Hope Bi Grip can help you.

  6. Anonymous users2024-02-05

    What are the risks of too high registered capital, welcome to pay attention, Kai Zhenglun likes, the next wonderful content recommendation, please send a private message or ** First, the huge registered capital bears greater legal risks The shareholders of a limited liability company are liable to the company to the extent of their subscribed capital contributions. The shareholders of the shares are liable to the company to the extent of the shares they subscribe. Shareholders who subscribe to the sky-high registered capital must be jointly and severally liable for the company's creditors within the scope of the commitment to subscribe to the registered capital

    Company A needs to apply for bankruptcy due to poor management, after the company liquidates, there are still 1 million debts 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 million It can be seen that arbitrarily setting the registered capital beyond the scope of one's own bearing is actually increasing the scope of the company's external liability Second, subscription does not mean non-payment Although the paid-in capital verification procedure of the enterprise has been cancelled, Shareholders should still pay their capital contributions at the time and in the manner agreed in the articles of association. Once the regulatory authorities spot check that the enterprise "only admits but does not pay" Not only will the enterprise be punished, and it will be pulled into the "abnormal business list" to be publicized to the public, and it may even be written into the "blacklist" of the national network, which will seriously affect the integrity of the enterprise itself, and may also bear legal risks 3. No restriction on the term of capital contribution does not mean that there is no need to cash in After the people's court accepts the bankruptcy application, if the debtor's investors have not fully fulfilled their capital contribution obligations, the administrator of bankruptcy liquidation shall require the investors to pay the subscribed capital contributions. The new industrial and commercial registration system does not limit the term of capital contribution for shareholders in principle, but it shall not exceed the term of the company's operation. Some people think that "there is no upper limit on capital contribution in laws and regulations, and there is no regulation on how long it will take to take out the money, and I can't pay it all, and my descendants can continue it."

    The company's normal operation may be fine, but once the company goes bankrupt and liquidates and becomes insolvent, or is revoked or punished, all shareholders shall bear joint and several liabilities for the company's debts with the upper limit of capital contribution Fourth, how much is the registered capital subscribed? (1) For start-up companies, it is necessary to do a good job in the capital budget of about 1-2 years of entrepreneurship, and it is more reasonable to set the registered capital as 2-3 times of the budget funds, which not only takes into account the capital contribution burden of shareholders, but also can meet the growth needs of the company (2) Do what you can, increase it appropriately, the registered capital can be increased in the early stage of the company, and the registered capital can be appropriately less, and then increase the capital when the company expands in the later stage and the enterprise has the ability to assume greater responsibilities and business needs (3) Industry-based, peer standards have great reference significance, different industries have different requirements for registered capital, Chengyou suggests that entrepreneurs can check the same industry on the national enterprise credit network, refer to the registered capital of the same industry.

  7. Anonymous users2024-02-04

    As we all know, the registered capital of the company.

    It has been changed from a paid-in system to a subscription system. Therefore, many people will be too high when filling in the registered capital, for example: in fact, it is a very small enterprise, but the registered capital is written 10 million.

    So is there any harm in this kind of excessively high registered capital? For this point, we will explain it to you.

    Speaking of the harm of too high registered capital, let's first explain what is the subscription system: burying oranges.

    The so-called subscription system means that when you fill in the registered capital, you do not need to be in the opening bank.

    There is a fixed fund, only need to fill in the last string of numbers, this is the subscription system, as for the difference with the paid-in system, this can be checked: what is the difference between the company's registered capital subscription and paid-in?

    So, what is the harm of a company's registered capital being too high?

    1. The higher the registered capital, the higher the representative responsibility.

    Let's make a hypothesis, if your company goes bankrupt or goes out of business during the course of operation, and you have a debt of 1 million that has not been paid off, if your company's registered capital.

    For 500,000, then the shareholder only needs to repay the debt of 500,000, but if your registered capital is 1 million, then you need to repay the debt of 1 million. Of course, this is not to say what your company is, but to tell everyone that the higher the registered capital, the greater the responsibility and risk.

    2. Different industries have different requirements.

    It is easy to write the registered capital when the company is registered, but not all industries have registered capital so easily. To take the simplest example, if your company is in the financial industry.

    Your registered capital is 100 million, but the paid-in is 0, the result may be to make customers suspect that your company has the possibility of fraud, and it will also attract the attention of various ** institutions, so in some special industries, after writing the registered capital, you also need to pay in some capital, which is not allowed to be faked, so it is better to be simple in the registered capital.

    3. Stamp duty is terrifying.

    We know that businesses need annual paid-up capital every year.

    With the capital reserve to pay 5/10,000 stamp duty, generally speaking, 1 million registered capital of the company, its stamp duty source is 200 yuan, which does not look high, but what if you are 10 million? It is 2,000 yuan, and the registered capital of 100 million yuan is 2w yuan, which is a lot of conversion of bending masses. Therefore, from this point, we can know that the higher the registered capital, the more terrifying the stamp duty you need to pay.

    Industrial and commercial registration. How much? Find MIND enterprise service rest assured, the company agency is safe and efficient, the tax consultant is professional, and MAN enterprise service one-stop service. Expert.

  8. Anonymous users2024-02-03

    1. Profits with large registered capital.

    1. The company's solvency is strong, financing will be easier and the loan amount will be higher;

    2. The restrictions are small, and the development space is larger;

    3. It is easier to gain the favor of customers, especially for the early stage of establishment, large capital can accelerate the pace of development of the company.

    6. For the same industry, it is easier to be favored with large registered capital.

    Second, the disadvantages of large registered capital.

    1. If the registered capital of the company is too large when it is established, it will be more eye-catching in the eyes of the tax personnel, and the tax personnel will produce a kind of company with hundreds of millions of dollars of business income after being established for many years, and the scale and output are obviously not matched, so the tax-related risks of being assessed and inspected will increase.

    2. The company's audit fees and the amount of stamp duty paid may also increase;

    3. For the company, the larger the registered capital, the greater the legal responsibility that the company needs to bear, and there is a proportional relationship between them;

    4. If the registered capital is subscribed at the time of the establishment of the company, in the case that all shareholders have not agreed on dividends, since the Company Law stipulates that dividends are distributed according to the proportion of paid-in capital contributions, it will affect the dividends of shareholders, thereby affecting the individual income tax of dividends.

  9. Anonymous users2024-02-02

    I don't think that the situation you're talking about is necessarily risky.

    First of all, the registered capital does not represent the company's financial situation. Even if the registered capital is low at the time of establishment, it has accumulated a large surplus through operating income, or when the company has added new registered capital, it has introduced equity investment at a high premium (the premium is included in the capital reserve) ......At this time, if the company does not convert the capital reserve to increase the registered capital, then it seems that the registered capital is not high, but the capital situation is very good.

    That is, it is no problem to use funds higher than the registered capital for long-term equity investment.

    I understand what you said about the fact that the registered capital and actual funds of the company far exceed the subscribed capital of the holding company, how to deal with it.

    In this case, if the controlled enterprise is indebted or bankrupt, the shareholders still need to bear the debts within the scope of the subscribed registered capital, and there may be a risk of payment. The general way to deal with this is:

    The holding subsidiary will reduce the capital in accordance with the legal procedures to match the actual demand for operation. However, it should be noted that capital reduction, like division, needs to be announced, and creditors can raise objections at the same time.

  10. Anonymous users2024-02-01

    When you want to start a business, want to open a company, then you first need to carry out industrial and commercial registration, when you carry out industrial and commercial registration, you need to face a source of problems on the company's registered capital, now the implementation of the subscription system, many people like to fill in the company's registered capital more, so what are the risks of excessive registered capital?

    Industrial and commercial registration - what are the risks of a company with a large registered capital?

    With the promulgation of the new company law, in addition to the relevant laws and regulations, there is no longer a requirement for the registered capital of the newly established company, and there is no longer a mandatory requirement on when to pay, and the shareholders only need to pay up the capital within the time specified in the company's chapter. Therefore, shareholders can agree on a longer period of time to pay up the capital in the articles of association, avoiding the more troublesome capital verification procedures before the establishment of the company.

    Seeing this, some people can't help but ask, can the capital be set a little bigger, so that the company looks tall, and is conducive to market development, and does not have to pay all the funds immediately, wouldn't it be more than one stone!

    It is true that a large capital will indeed make the company's future operation bring extra points and be trusted by others, but too large capital also hides a potentially huge risk, because the company law clearly stipulates that the shareholders of a limited liability company are liable to the company to the extent of their subscribed capital contributions: the shareholders of a joint-stock company are liable to the company to the extent of the shares they subscribe. Therefore, the original subscription and subscription of shareholders at the time of establishment of the company will be used as the basis for the future liability of shareholders, which means that in the case of not fully contributing capital, shareholders still have to bear the relevant liabilities limited to the original subscribed capital contribution.

  11. Anonymous users2024-01-31

    The risks of excessive registered capital are as follows:

    1. The huge registered capital is unbearable. The size of the registered capital determines the company's financial strength and ability to bear civil liability externally. Arbitrarily setting a registered capital that exceeds the scope of one's own bearing actually increases the scope of the company's external liability.

    When the company becomes insolvent and falls into bankruptcy repayment procedures, the shareholders who subscribe to the sky-high registered capital must bear joint and several liability for the company's creditors within the scope of the judgment that they promise to subscribe to the registered capital. Therefore, if the company is operating normally and everything is going well, there may not be any problems, but once the project is unfinished and insolvent;

    2. Subscription does not mean that you don't have to pay. The law no longer requires the registration of paid-up capital as a registration item, nor does it require a company to provide a capital verification report when it registers its establishment or increases its capital. However, shareholders should still pay their capital contributions in accordance with the time and manner agreed in the articles of association.

    Failure to pay will affect the company's credibility, because the regulatory authorities will conduct spot checks on the company's capital contribution, and if the subscription commitment is not fulfilled, the company will be included in the list of abnormal operations and publicized to the public;

    3. The payment period of 10,000 years does not mean that there is no need to cash. In the case that the law does not mandate the payment period of registered capital, it can theoretically be stipulated in the articles of association for 30 years and 60 years. Although shareholders are not obliged to fulfill their capital contribution obligations in advance before the promised paid-in capital contribution period arrives.

    However, after the company entered the liquidation procedure, although the paid-in capital contribution period promised by the shareholder has not expired, the shareholder's capital contribution obligation is deemed to have expired in advance. After the commencement of the bankruptcy liquidation procedure, the insolvent company is unable to repay its debts in full, and it is all the more necessary for the shareholders' capital contribution obligations to be regarded as due in advance in order to increase the proportion of creditors to be repaid.

    Legal basis: Article 28 of the Company Law of the People's Republic of China.

    Shareholders shall pay in full and on time the amount of capital contributions subscribed by them as stipulated in the articles of association. 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 transfer of property rights shall be handled in accordance with law.

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