Q:
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What are the ways to increase the capital of a limited company?
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A:
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The most common ways to increase the capital are capital increase by cash, capital increase by transferring surplus earnings and capital increase by transferring claims.
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Q:
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What is the most common situation of capital increase for a company?
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A:
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A company often decides to increase the capital base on the operational needs or the needs to improve the financial structure.
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Q:
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If there is an increase in capital, does the company requires to amend the articles of association?
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A:
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According to the Company Act, if there is an increase in capital, the company should apply for registration changes within 15 days after the amendment of the articles of association.
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Q:
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Is there any regulations for the proof of capital contributed by the shareholders of the Limited Company?
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A:
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The limited company is required to have a Certificate of Capital contributed, however, none of the companies are issuing this certificate in practical. According to the Articles No.103 of the Company Act, the limited company should issue the register of members, the shareholders could check the register of members at the registered address of company, and the company should in accordance with the regulation of articles of association, the articles of association shall contain the name of the shareholders, residential address and the capital contributed. The capital contributed by the shareholder could also be viewed in the company registration form.
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Q:
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What kind of the business address will not approve by the Ministry of Economic Affairs?
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A:
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The Ministry of Economic Affairs will approve the legal building with the number of housing address assigned by the household registration agency, and without the wordings of "front", "back", "left", "right".
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