What is the difference between company registration subscription and paid-in
With the facilitation of company registration, more and more entrepreneurs choose to register companies to achieve their business goals. In the process of company registration, subscription and paid-in are two important concepts, and they have obvious differences. This article will introduce the difference between subscription and paid-in in detail to help you better understand the relevant regulations of company registration.
1. Definition of subscribed and paid-in.
1.Subscribed: refers to the amount of capital contribution or registered capital committed by shareholders at the time of registration of the company. Under the subscription system, shareholders can stipulate the amount of capital contribution, the time and method of capital contribution, etc., in the articles of association of the company, without actually paying the capital contribution.
2.Paid-in: refers to the capital contribution actually paid by shareholders in accordance with the amount of capital contribution, time and method of capital contribution agreed in the articles of association. Paid-in is usually the capital contribution from shareholders that the company has already received at the time of registration.
2. The difference between subscription and actual payment.
1.Time of capital contribution: Subscription is the time of capital contribution promised by shareholders at the time of company registration, while actual payment is the time when shareholders actually pay capital contribution. In practice, the time of subscription is usually later than the time of actual payment.
2.Amount of capital contribution: The subscription is the amount of capital contribution promised by the shareholder, while the actual payment is the amount of capital contribution actually paid by the shareholder. The subscription amount may be higher than or equal to the paid-in amount, depending on the company's registered capital and shareholders' agreement.
3.Contribution method: There may also be differences between the subscribed and paid-in contribution methods. Under the subscription system, shareholders can choose to contribute capital in money, in kind, intellectual property, etc., while under the paid-in system, shareholders can usually only pay capital contributions in the form of money.
4.Legal liability: The legal liability of shareholders may also be different due to the difference in the timing and amount of subscription and paid-in. Under the subscription system, the legal liability of shareholders is mainly based on the articles of association and the contract, while under the paid-in system, the legal liability of shareholders is mainly based on the actual capital contribution.
3. Precautions for subscription and actual payment in company registration.
1.Reasonable planning of registered capital: When choosing registered capital, the company should make reasonable planning according to its own actual situation and business needs. The registered capital should not be too high or too low, too high will increase the pressure on shareholders to contribute, too low may affect the company's reputation and business development.
2.Clarify the method and time of capital contribution: The method and time of capital contribution of shareholders should be clearly stated in the articles of association of the company to avoid false or delayed capital contribution. At the same time, the liability for breach of contract should be agreed according to the actual situation to protect the legitimate rights and interests of the company.
3.Pay attention to changes in laws and regulations: With the continuous changes in laws and regulations related to company registration, companies should pay attention to relevant policy developments, adjust and improve the articles of association and contract terms in a timely manner, and ensure legal and compliant operations.
Fourth, summary. Subscribed and paid-in are important concepts in company registration, and there are obvious differences between them in terms of the time of capital contribution, the amount and the method of capital contribution. When registering a company, it is necessary to fully understand the difference between subscription and paid-in, reasonably plan the registered capital, clarify the method and time of capital contribution, and pay attention to changes in laws and regulations, so as to ensure the legal and compliant operation of the company and the legitimate rights and interests of shareholders. At the same time, it is also very important for entrepreneurs to choose the right company type and place of incorporation, which will help reduce the risk of starting a business and improve the success rate.