Capital contribution schedule

Details

Parent Category: New enterprises

Category: Minimum capital

Sino-foreign equity and contractual JVs are required to specify in their contract and articles of association, and foreign enterprises in their articles of association, the time limit for capital contribution. If such a provision is missing, the project will not be approved and cannot be registered.

According to regulations, capital contribution may be made in two ways. First, one-off contribution, i.e. parties to the JV should make their capital contributions within six months after the issuance of business license. Second, contribution by instalment. The first instalment should not be less than 15% of the capital contribution the parties to the JV undertake to make. The balance should be paid up within a specified time limit. Detailed implementation rules are as follows:

• For registered capital of US$500,000 or below, capital contribution should be made in full within one year after issuance of business license
  
  
• For registered capital of over US$500,000 but less than or equal to US$1 million, capital contribution should be made in full within 18 months after issuance of business license
  
  
• For registered capital of over US$1 million but less than or equal to US$3 million, capital contribution should be made in full within two years after issuance of business license
  
  
• For registered capital of over US$3 million but less than or equal to US$10 million, capital contribution should be made in full within three years after issuance of business license
  
  
• For registered capital exceeding US$10 million, the time limit for capital contribution will be determined by the approval authority on a case-by-case basis

In the event that an FIE fails to make its capital contribution in full within the time limit stipulated in the contract due to special circumstances, application for extending the time limit for capital contribution may be made to the original approval authority and the case should be filed with the registration authority for the record.