The reduction of registered capital refers to the act of reducing the registered capital of the company according to the actual situation of the business in accordance with the law.
When the company incurs serious losses or excess capital, it may choose to reduce its registered capital to reduce its financial pressure or adjust the company's capital structure. Through capital reduction, the company can repay its debts, return its capital contribution or reduce the capital contribution burden of shareholders.
There are two types of capital reductions: substantive capital reductions and nominal capital reductions. A substantial capital reduction is a reduction of the company's assets by an equal amount while reducing the company's book capital, and returning these assets to shareholders or transferring them to others. A notional capital reduction only reduces the amount of book capital, and the company's assets are not reduced accordingly, so it cannot make any return to shareholders or transfer assets to others.
There are two ways to reduce the capital: reducing the number of shares and reducing the denomination. The specific method to use depends on the actual situation of the company and the requirements of laws and regulations.
It should be noted that the capital reduction must be carried out in accordance with the legal procedures and must be resolved by the shareholders' meeting or decided by the shareholders. In the process of capital reduction, the company needs to prepare a balance sheet and a list of assets, and return the amount of paid-in capital invested by shareholders in accordance with the articles of association. At the same time, the company needs to notify creditors and make an announcement, pay off debts or provide guarantees, and go through the procedures for industrial and commercial change registration.
In short, the reduction of registered capital is the act of reducing the amount of registered capital according to the needs of the company's business in accordance with the law. Through capital reduction, the company can optimize the capital structure, reduce financial pressure, and improve operational efficiency and market competitiveness.
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Company deregistration:1
The company's capital reduction: 2
Company paid-in: 3