The Provisions Of Law On Venture Capital Contribution

Q: now the society encourages individuals to start their own businesses. I also want to make use of my own skills to start a business. But I heard that the minimum registered capital of a company is 100 thousand yuan. I don't have so much cash on hand. How can I realize my desire to start a business? What are the provisions of the law on capital contribution?

Answer: in our current law, there are mainly legal ways to start a business: apply for registration, engage in individual industry and commerce, establish limited liability company, set up partnership enterprise and set up individual proprietorship enterprise.

If you engage in entrepreneurial activities mainly based on your own or family members' labor, such as retail and catering, hairdressing, laundry, flower shop, newspaper retail and other social services, it is recommended that you apply for registration as an individual industrial and commercial household.

The funds of individual industrial and commercial households have no statutory requirements, and their operating income is owned by citizens or families.

However, individual industrial and commercial households do not belong to economic organizations, do not have legal personality, and have unlimited joint and several liability for their debts.

Among them, the personal business is paid by personal property, and the family business is paid by family property.

If you want to set up a limited liability company, if you want to set up a limited liability company, according to the company law, the number of shareholders must be more than two or less than 50, and the registered capital shall not be less than the following minimum: 500 thousand yuan for the production and operation or the wholesale business, 300 thousand yuan for commercial retail companies, and 100 thousand yuan for scientific and technological development, consulting and service companies.

Shareholders can make capital contributions in currency or in real estate, industrial property, non patented technology and land use rights.

The real estate, industrial property, non patented technology or land use right as a capital contribution must be assessed, valued and verified, and the price should not be overestimated or underestimated.

The company is responsible for the company's debts with its assets. The company's shareholders are responsible for the company's capital contribution.

There are always risks in starting a business. If possible, it is recommended that you try to start a business according to the company law in the form of a limited liability company.

If you want to set up a partnership, there must be more than two partners in accordance with the partnership law.

The law does not require minimum requirements for registered capital of partnership enterprises and requires mandatory capital verification by statutory bodies, but requires partners to fulfill their obligations of capital contribution in accordance with the form and amount of capital contribution agreed upon in partnership agreements and the time limit for paying capital contributions.

Partners can invest in currency, in kind, land use rights, intellectual property rights and labor services.

Unlike a limited liability company, a partnership between a company and a limited liability company shall first compensate the enterprise's debts with the property of the partnership enterprise. When the compensation is insufficient, the partners shall bear unlimited joint and several liabilities with their property.

Although there is no minimum capital requirement when a partnership is established, the risk is greater because partners are jointly and severally liable for partnership debts.

If you start a partnership business, please choose partners carefully.

In addition, the recently implemented "sole proprietorship law" stipulates that a natural person can set up a sole proprietorship enterprise.

The law also does not stipulate the minimum amount of capital contribution by investors and the requirement for capital verification by statutory capital verification institutions.

It is worth noting that after the dissolution of a sole proprietorship enterprise, the original investor shall still be liable for the debts of the sole proprietorship enterprise during the period of existence. However, if the creditor fails to submit a debt repayment request to the debtor within 5 years, the liability shall be extinguished.

For a limited company or partnership, a sole proprietorship is better able to meet the needs of individuals who lack capital and do not want to be partners or partners.

If you choose a sole proprietorship enterprise to start a business, you should pay more attention to strengthening all kinds of risks in the absence of supervision.