Meijia Enterprise Service hereby reminds all bosses and shareholders that before opening a company to do business, they must have a clear understanding of the core concept of "the difference between company subscription and actual payment", and it is very important for entrepreneurs to understand the difference between the two, because this will directly affect the company's financial status, operation strategy and legal responsibility.
Let's take a closer look at the difference between company subscription and actual payment with Meijia Enterprise Service.
1. Definition and Nature
Subscribed capital
Refers to the total amount of capital that shareholders commit to invest in the company, which is usually specified in the company's articles of association or shareholders' agreement. The subscribed capital represents the shareholder's commitment to the future investment of the company, but it does not mean that the funds are in place.
Paid-up capital
Refers to the capital that shareholders have actually paid to the company. The paid-in capital represents that the funds have been put in place and have become the company's operating funds.
2. Time differences
Subscribed capital
It is determined at the time of the incorporation of the company that the shareholders are obliged to pay at the agreed time and in the amount. The timing of the placement of the subscribed capital is relatively flexible and can be adjusted according to the actual needs of the company.
Paid-up capital
Shareholders are required to pay their funds within a short period of time after the company is incorporated. The paid-in capital is in place for a relatively fixed time, and it is a fund that the company can use immediately.
III. Legal Liability and Risk
Subscribed capital
Under the subscription system, the shareholders of the company bear legal responsibility for the company's debts to the extent of their subscribed capital contributions. In other words, if the company goes bankrupt or is unable to repay its debts, the shareholders only need to bear the amount of their subscribed capital contributions, and do not need to bear the entire debt.
At the same time, if the shareholder fails to complete the capital contribution obligation on time, it shall bear the liability for breach of contract to the shareholder who has paid the capital contribution in full and on time. If it is found that the actual ** of non-monetary property contributed as capital contribution for the establishment of the company is significantly lower than the amount specified in the articles of association, the shareholders who contributed capital shall make up the difference;If it fails to make up, it shall bear the liability for breach of contract to other shareholders.
Paid-up capital
It is the capital that the company can actually use, which is of direct significance to the company's daily operation and debt commitment. The amount of paid-up capital will directly affect the company's solvency and market reputation.
It should be reminded that the subscription system does not mean that it can be paid in. Otherwise, once the company falls into a debt dispute, the unpaid shareholders need to make up the paid-in amount to repay the debt, and also need to bear other unlimited joint and several liabilities, which may involve personal property to repay the insolvent part of the debt.
4. Impact on the company's operations
Subscribed capital
A higher subscribed capital can improve the company's market competitiveness and help attract investors and customers. However, excessive subscribed capital may put pressure on shareholders to pay and affect the company's capital planning and operation strategy.
Paid-up capital
Sufficient paid-in capital can ensure the normal operation and expansion of the company and enhance the company's ability to resist risks. The lack of paid-up capital is likely to lead to difficulties in the company's operation and even face the risk of bankruptcy.
The above is the difference between company subscription and actual payment. In general, the subscription can alleviate the short-term payment pressure of shareholders, but it is the obligation and responsibility of every shareholder to complete the payment, and only when the payment is put in place can we avoid taking more responsibilities and risks in the future. At the same time, the paid-in funds can also ensure the normal operation and future development of the enterprise, and enhance the overall competitiveness of the enterprise.
If the cash and currency and other capital contribution methods cause certain pressure on the shareholders to pay in the capital contribution, they can choose the more cost-effective capital contribution method of intellectual property payment, that is, the shareholders use the intellectual property rights they hold as capital contributions, and transfer them to the company's name after valuation and pricing, so as to complete the paid-in registered capital.