What Is Funding Currency?

The method of capital contribution refers to the method by which the parties to the joint venture contribute capital to the shares. According to Article 22 of the Regulations for the Implementation of the Law on the Implementation of the Sino-Foreign Joint Venture Law, joint venturers may use capital to make capital contributions, and may also use buildings, plant buildings, machinery and equipment or other materials, industrial property rights, know-how, site use rights, etc. . ^[1]

type of investment

The method of capital contribution refers to the method by which the parties to the joint venture contribute capital to the shares. According to Article 22 of the Regulations for the Implementation of the Law on the Implementation of the Sino-Foreign Joint Venture Law, joint venturers may use capital to make capital contributions, and may also use buildings, plant buildings, machinery and equipment or other materials, industrial property rights, know-how, site use rights, etc. . ^[1]

Funding method refers to the form of investment for company or enterprise registration

According to Article 27 of the New Company Law, a limited liability company

Article 27 of the "Company Law" stipulates that "Shareholders may make capital contributions in currency, or may use non-monetary property valued in real currency, intellectual property rights, land use rights, etc., which may be valued in currency and may be transferred in accordance with the law; Except for properties that cannot be used as capital contributions.
The non-monetary property as capital contribution shall be evaluated and valued, and the property shall not be overvalued or undervalued. Where laws and administrative regulations have provisions on valuation, such provisions shall prevail. "

Extended content for evaluation of non-monetary capital contribution: procedures and precautions for company registration capital verification

1. Open a company temporary account (capital verification account) at the bank with the company name approval notice.

2. If all shareholders make capital contributions in cash, they should deposit the investment funds into the company's temporary account according to the investment approval notice of the company name and the investment proportion and investment amount stipulated in the company's articles of association. The investment funds can be deposited by bank transfer or direct deposit. Two ways of cash. It should be noted that when depositing investment funds, shareholders should fill in "XX (name of shareholder) investment funds" in the "use of money" column of the bank statement or cash payment note.

3. Shareholders who invest in physical assets (fixed assets, inventories, etc.) or intangible assets (patents, know-how): after the amendment of the new company law in 2006, the requirement to differentiate the minimum registered capital according to the company's business content will be limited liability The minimum registered capital of the company was reduced from 100,000 to 500,000 yuan to 30,000 yuan, and the minimum registered capital of the company was reduced from 10 million yuan to 5 million yuan. At the same time, for various reasons, although the authorized capital system was not adopted in the end, the capital of both companies was allowed to be paid in installments without having to make a full payment. It was only required that the initial capital contribution of all shareholders should not be less than 20% of the registered capital. %, And the rest must be paid in two years, of which investment companies can pay in five years. In terms of the structure of the capital contribution ratio, one is to expand industrial property rights to the entire intellectual property rights, and the other is to remove the restrictions on the capital contribution ratio of intangible property, but only to stipulate that the amount of currency investment must not be less than 30% of the registered capital. More important changes are fundamental Changed the legislative method of shareholders' capital, replaced the original mechanical and solid comprehensive enumeration requirements with a flexible abstract standard "non-monetary property that can be valued in currency and legally transferable", which not only substantially expanded the shareholders The scope of capital contribution, and the full use of various investment resources and social wealth, to maximize the investment needs of shareholders and companies.

4. The following information shall be provided to the accounting firm when verifying the capital:

(1) Notification of approval of company name;

(2) the articles of association of the company;

(3) Shareholder identity certificate and private seal, individual shareholders provide ID cards, and legal person (company) shareholders provide business licenses;

(4) The bank investment statement (cheque header) or cash payment slip deposited with the bank by the shareholders' investment;

(5) Confirmation letter from the bank that opened the account and bank statement (balance sheet);

When providing the above information, keep a copy after checking the originals required by the accountant affairs. ^[2]