Similarities And Differences Between Paid Up Capital And Registered Capital

There are some differences between the paid in capital and the registered capital sometimes, which are not the two concepts.

Paid in capital

Paid in capital is an accounting subject with code 4001. Shares The company changed the subject into "capital stock", which is used to calculate the paid in capital that the enterprise accepts investors. When an investor receives more than his share of the registered capital or share capital, the excess portion is accounted for as capital premium or equity premium in the capital reserve account.

The direct sources of paid in capital include the following aspects:

(1) enterprises accept capital invested by investors;

(two) stock dividends distributed in profits;

(three) transfer capital from capital to capital;

(four) the conversion of the bonds held by Switching Company debenture holders into convertible bonds. shares Turn in;

(five) when debt is restructured, debt is converted into capital. To change into ;

(six) equity settlement of share payment in exchange for services provided by workers or other parties.

registered capital

Registered capital is a legal term. Different forms of enterprises have different regulations.

The registered capital of an enterprise actually is reflected as "paid in capital".

In accordance with the provisions of the new company law, the registered capital of a limited liability company is the amount of capital subscribed by all shareholders registered in the company registration authority. The initial contribution of all shareholders of a company shall not be less than 20% of the registered capital, nor shall it be lower than the statutory minimum registered capital. The remaining part shall be paid within 2 years from the date of the establishment of the company, and the investment company may pay the full amount within 5 years. The form of shareholders' contribution includes money and physical objects, intellectual property rights, land use rights and other non monetary assets that can be assessed in monetary value and can be transferred in accordance with the law. The total amount of monetary contributions of all shareholders shall not be less than 30% of the registered capital of a limited liability company.

The minimum registered capital of a 1 person limited liability company is RMB 100 thousand yuan. Shareholders shall pay the capital contribution stipulated in the articles of association at a time.

Where the Limited by Share Ltd is established by way of initiation, the registered capital shall be the total amount of capital subscribed by all promoters registered with the company registration authority. The initial contribution of all the sponsors of the company shall not be less than 20% of the registered capital, and the rest shall be paid within 2 years from the date of the establishment of the company, and the investment company may pay the full amount within 5 years. When the Limited by Share Ltd is established by way of collection, the registered capital shall be the total amount of paid up capital registered in the company registration authority.