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Is it true that the bigger the capital, the better?

the first step in starting a business is to register a company. The registered capital of a company is a company as an economic subject. In many people's minds, the registered capital is a symbol to measure the size and even the strength of a company. Therefore, it is generally believed that the larger the registered capital, the better. Is it true that the more registered capital, the better? Let's take a look with Mande Enterprise Service!

Why are most companies called "XX Limited Company" or "XX Limited Liability Company"? Limited liability here means that the shareholders of the company bear limited liability for the debts of the company, and the amount of liability is the registered capital of the company. Our country officially implemented the registered capital subscription system on March 1, 2114. Theoretically, except for industries that still implement the statutory registered capital (such as banking, insurance, securities, financial leasing, construction, pawn, foreign investment, labor dispatch and other 14 industries), it is possible to set the registered capital at will. However, as an entrepreneur, you should have a more rigorous legal awareness, and the registered capital is not as much as possible.

when actually registering, it is suggested to consider the following factors:

First, according to the industry qualification, invest capital

First, how much the registered capital of the company should be written should refer to the qualification requirements of the industry. For example, when an Internet company applies for an ICP business license, the ICP business license requires the registered capital of the company to be above 1 million; Tmall and JD.COM also set a standard for merchants entering the platform: the registered capital is more than 2 million. Other qualifications/qualifications, such as bidding, etc., can be referred to the common practices of the industry. There is no need to invest too much, affecting cash flow.

second, the payment of stamp duty is directly linked to the registered capital

at the end of each year, enterprises should pay stamp duty at the rate of five ten thousandths of paid-in capital and capital reserve. For example, the registered capital of a science and technology company is 1 million yuan. If the company has paid in, the stamp duty of the company will be 511 yuan. Here is a horrible case. In 2116, a company named Anhui Yulongdi Smart Catering had a registered capital of 5,111 billion yuan (the valuation of three Tencent companies). If it is paid, the stamp duty will reach 2.5 billion yuan. Therefore, when choosing the registered capital, we must consider all factors, and don't try to be quick and bring more trouble.

3. The greater the registered capital, the heavier the risks it bears.

The registered capital will not end with money, and more capital will bear more responsibilities. For example, for a company with a registered capital of 511,111, A holds 71% of the shares, so it needs to contribute 351,111 yuan. Later, the company was badly run and owed 1 million foreign debts. Then A only needs to bear the responsibility with his contribution of 351,111 yuan at most, and the excess has nothing to do with him. But if the registered capital of this company is 11 million, and A still holds 71% of the shares, then A will bear the responsibility of 7 million!

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