What is the Minimum Registered Capital for establishment of a WFOE or JV?
According to the Company Law of the PRC, the minimum registered capital for multi-party shareholder company is RMB 30,000 and for a single-person company, RMB 100,000. However, these are the minimums and may be more applicable to domestic companies rather than foreign. The minimum Registered Capital for businesses will be assessed based on the business scope and the scale of operations, or in other words, what is assessed to be sufficient for the business to become self-sufficient. Further, Article 26 of the Company Law states that if other laws or regulations require a higher minimum registered capital, then that amount shall be used. The real question is this: based on your business plan, how much capital will you need to invest in the company until it is estimated to be self-sufficient in terms of turnover and expenses? We generally recommend that clients at least set their Registered Capital based on total requirements for at least the first year of business and then extend out dep
