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Foreign Direct Investment

What is the Minimum Registered Capital of a JV or WFOE?-ChinaFIG FDI Consulting Services.

ChinaFig  can answer your questions on minimum registered capital, along with China business, China incorporations, China investment, China merger acquisition service along with advice from in-house China accountants.


What is the Minimum Registered Capital of a JV or WFOE?

ChinaFIG consultants provide professional FDI consulting services which have helpped out many foreign investors. They suggest that foreign investors should have the knowledge of regulations on JV or WFOE. 

The registered capital of a WFOE or JV is the amount of capital contribution actually paid up by all shareholders and proof of which is to be submitted to the company registration authority. The registered capital of a WFOE or JV shall not be less than 30,000 RMB (100,000 RMB if the parent company is held by only one person).  The initial capital injection must not be less than 20% of the registered capital and balance must be injected within two years.

It must be stressed however, that there are a number of exceptions to this area of company law.  The most important aspect is that local governments have the ability to increase the minimum registered capital amount and decrease the period of time that it must be injected.  Additionally, higher registered capital amounts can be required for the right to export, companies participating in certain industries and companies engaging in certain JV partnerships.

For minimum registered capital registration requirements for a specific location and specific industry, contact info@ChinaFIG.com  

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