In the current wave of entrepreneurship, the issue of the company's registered capital has become the focus of attention. When faced with the choice of subscribing or actually paying, many entrepreneurs will be confused. So what are the differences between corporate paid-in and subscribed? In the process of providing intellectual property payment services for enterprises, we have accumulated rich experience, which can help you deeply understand the difference between subscription and payment, so that bosses can make more informed decisions when choosing the registered capital method.
The difference between enterprise paid-in and subscribed is as follows:
Subscription system: Nature: The amount of capital contribution that shareholders clearly promise in the articles of association to complete their subscribed capital contributions within a certain period of time. This means that at the registration stage of the company, shareholders do not need to pay the full amount of registered capital in full at one time, nor do they need to provide a capital verification report.
Time of capital contribution: Shareholders can pay the registered capital in installments according to the agreed time.
Advantages of the subscription system:
1.There is no need to pay a large amount of money at the beginning of the business, which greatly reduces the financial pressure and provides more flexibility for entrepreneurs.
2.Since shareholders can contribute capital in installments according to the agreed time, this method reduces the capital occupancy rate, improves the efficiency of capital use, and provides strong support for the development of the enterprise.
Disadvantages of the subscription system:
1.Under the subscription system, there is a risk that the registered capital is false. This can lead to questions about the company's operating strength and affect the reputation and credibility of the company.
2.Under the subscription system, shareholders are jointly and severally liable. This means that creditors have the right to demand that shareholders do so when the business is unable to meet its debts. It increases the risk to shareholders and may have an impact on their personal assets.
Paid-in system: Nature: Shareholders are required to fully invest the registered capital into the company when the company is established, and it is necessary to go through the capital verification certificate of a professional institution to ensure that the funds have been in place.
Capital contribution requirements: Before the enterprise is registered, the shareholders must actually pay all the registered capital to the company's bank account and complete the capital verification procedure.
Advantages of the paid-up system:
1.Under the paid-in system, enterprises must pay the registered capital in full, so as to ensure the authenticity and reliability of the registered capital, and help to improve the credibility and credibility of the enterprise.
2.Under the paid-in system, the boundaries of liability are clear, and shareholders are not jointly and severally liable for the company's debts after they have faithfully fulfilled their capital contribution obligations.
Disadvantages of the paid-in system:
It is necessary to pay the entire registered capital at one time, which has a greater demand for funds and may bring greater financial pressure to shareholders.
Since the implementation of the subscription system in 2014, although it has reduced the financial pressure for many entrepreneurs, it has also brought some problems. Many people blindly subscribe, pursue sky-high registered capital, and even extend the period of capital contribution.
Recently, a new company law was passed, according to which shareholders must complete the capital contribution within 5 years from the date of incorporation of the company. This regulation aims to regulate the market, reduce the phenomenon of arbitrary subscription, and ensure the stable development of enterprises.
For entrepreneurs, if they feel that the pressure of monetary contribution is greater, they can consider using non-monetary assets such as patents and intellectual property rights to make paid-in capital contributions.
According to Article 48 of the New Company Law, shareholders may make capital contributions in monetary terms, or use non-monetary assets such as physical objects, intellectual property rights, land use rights, equity rights, creditor's rights, etc., which can be valued in monetary terms and can be transferred in accordance with the law. However, there is an exception for property that is not allowed to be used as capital contribution as stipulated by laws and administrative regulations.
The non-monetary property used as capital contribution shall be appraised and verified, and the property shall not be overvalued or undervalued. Where laws and administrative regulations have provisions on appraisal valuation, follow those provisions.
However, at the same time, it should be noted that non-monetary contributions need to be entrusted to a professional appraisal agency in accordance with the law to ensure the authenticity and reasonableness of non-monetary contributions.