Can we set up a company which has only RMB1 as the registered capital?
Although the new company law allows the company to subscribe the capital instead of fully paid-up at the time of the establishment, the shareholder still needs to make the contribution within the schedule set in the Articles of Association of the Company. Further, even if the minimum registered capital requirement was cancelled based on the update of the Company Law, for some special industry, the investor should still meet the registered capital requirement according to the laws and regulations. For example, if you want to set up Joint Venture involving in the talent intermediary service, you need to have at least USD300,000 as the registered capital for foreign investor other the that from Hongkong and Macau Special Administrative Region. Further, the capital verification report should also be prepared before you apply for the HR service license. Further, for the limited liability companies, the registered capital, to some extent, shows your ability to take the liability and your financial situation. Especially for the initial of the company operation, the registered capital means all assets of the company. When you decide your registered capital, the registered capital should be in compliance with the business scales. It is suggested that for a consulting WFOE having RMB 100,000 as the registered capital and for trading WFOE having RMB1, 000,000 as the registered capital.