Registered Capital needed for Trading Company Set-up in China

ShenzhenTrading Company Formation Service
Hotline: 86-755-82143348, Email:amyhuang@citilinkia.com

According to the above-mentioned Regulations, the minimum registered capital for a foreign-invested company should comply with the requirement of the Chinese Company Law, which provides that the registered capital for a wholesale company should be at least RMB 500,000 (about USD62,000), and for a retail company should be at least RMB300,000 (about USD37,000).

The examination and approval authority may require a higher amount of the registered capital pursuant to the categories of goods which the company is going to trade. For example, if the company wants to trade automobile, a higher amount of registered capital would be required.The registered capital does not need to be contributed when applying for the registration of the company. After the company being registered, 20% of the registered capital needs to be put into the bank account of the company within 90 days after the registration.

The requirement of the registered capital is to ensure that the company will have enough funds for its operation after being registered. The registered capital is to be used for the expenditures of the company, and it is not allowed to be returned to the investor(s) unless the company is to be terminated (dissolved).

The government fees include relevant registrations fees, such as the Industry and Commerce Registration Fee, which is 0.08 % of the registered capital, and other registration fees such as the tax registration fee (RMB30), code registration fee (RMB150), customs registration fee (RMB150). If, for example, a company’s registered capital is RMB500,000 (USD62,000), the total amount of government fees is around RMB1100 (USD136).

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