Requirements on the minimum registered capital of various industries in China
Although the new amendments to Chinese Company Law has taken effective on March 1, 2014 bringing significant changes and easing the set up of new companies, for the time being certain requirements on the minimum registered capital still need to be met. In the following text, we listed a few industries that might be interesting for our Chinese and foreign readers.
1. Foreign Invested Enterprises
Companies are mainly incorporated in the form of limited liability companies or joint-stock limited companies. For limited liability companies, the minimum authorized capital is RMB30, 000. For joint—stock limited companies, the minimum authorized capital requirement is RMB 5 million. However, local administrative industrial and commercial bureau (“AIC”) has considerable discretion on the minimum registered capital and local required minimum capital is usually much higher than the minimum requirements by law. We suggest you to check with local AIC when you think about the registered capital.
2. Cultural Industry
The minimum registered capital of a foreign-invested cinema is RMB 6 million. The minimum registered capital of publication enterprise is RMB 300,000.
3. Tourist Industry
The minimum registered capital of an international traveling agency is RMB 1,500,000, while it is only RMB 300,000 for a domestic traveling agency. For a sino-foreign joint venture travel agency, the minimum registered capital is RMB 4 million.
4. Transportation & Logistics Industry
The minimum registered capital of company dealing with international transportation business by sea is RMB 5 million, by air is RMB 3 million, by land is RMB 2 million. International freight forwarding agency invested by foreign investors shall meet the minimum registered capital of USD 1 million.
In summary, there are many laws, regulations and guidelines regarding to the minimum registered capital in different industries in China, both on a local and central level. We will be very happy to assist you in looking for detailed requirements and further assist you to expand business in China.