Notice regarding WOFE registered capital payment matters
According to "Corporate Law", the corporation’s registered capital should verify the issued certification as a legal proof of the amount of the investment capital by verifying authority (Accounting Firm). The Capital verification certificate would be used in many occasions of daily operations, such as Corporation Establishment, Capital Increasing, Annual Inspection, Capital Settlement, etc.
For the WOFE to successfully carry out the payment and verification of registered capital, the following issues should be noted by corporations (entrusting party) in the process of capital verification.
1. Foreign investor should remit the capital fund to the foreign exchange capital account of the corporation and illustrate the purpose of investment by remittance.
2. The remitter’s name should be consistent with the investor’s name on the Approval Certificate.
3. The capital fund remittance from foreign investor should conform to the approval from government and requirement of investment proportion stipulated in articles of the corporation.
4. The foreign investors need to carefully consider the factors of bank charges (including intermediary bank), exchange rate fluctuation and so on before remittance and ensure the capital fund to be received in full. The investors could remit extra amount in the event that they can not figure out the converting amount of registered capital accurately. But the exceeding parts may not be above of the limitation amount approved by SAFE.
5. In case of extra remittance, the corporation may apply to bank for drawback of the exceeded part of the capital fund. The investor (entrusting party) also could choose to keep the exceeded part in the company and treated them as Capital Surplus.
6. As for the unpaid part of capital fund, the foreign investors should remit them as quickly as possible, or take the received part solely as a term of capital contribution which shall exceed the amount required in approval from government and the limitation stipulated in articles of corporation for verification and take the rest part as another term of capital contribution for verification.
7. The valid term of capital verification report for registration alternation of Business License is 3 months, so the corporation shall register of Business License for Paid-up capital timely after receiving the report.