The Principle Of Abolishing The Statutory Minimum Registered Capital Has Substantially Reduced The Threshold For Investment And Development.

< p > < strong > (1) the industrial and commercial registration system has broken the threshold of statutory minimum registered capital < /strong > /p >

The practice of implementing the statutory minimum registered capital system has proved that setting up the minimum registered capital, though subjectively, ensures the company's eugenics and paction safety, objectively helps to restrain the investors who are not strong enough to invest in the establishment of shell companies, but it has also done some wrong in P.

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< p > it is difficult to ensure that the lowest standard of registered capital is stipulated by the legislators or administrative organs far away from commercial life, and its rationality, legitimacy, scientificity, objectivity and feasibility are difficult to ensure. The statutory minimum registered capital can not only provide enough financial guarantee to creditors, but also easily become an amulet for investors who are not honest investors to escape debt. The high threshold of minimum registered capital excludes the middle and low income groups outside the company. In fact, it is a system discrimination; the legal minimum registered capital system suppresses the enthusiasm of private investment and entrepreneurship, and hinders the investment among people to play its due role in stimulating economic growth.

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< p > < strong > (two) abolishing the statutory minimum a href= "http://www.91se91.com/news/index_c.asp" > registered capital < /a > system does not mean abolishing the registered capital system of the company < /strong > /p >

< p > abolishing the statutory minimum registered capital system and deciding the amount of capital invested by the shareholders' autonomy. Integrity investors can invest in the company's capital according to their own economic strength, the nature and scale of the company's business activities, and the capital requirements of trading partners.

In this way, the low income grass roots can create companies freely, and honest companies and their shareholders will consciously invest huge amounts of equity capital and debt capital in order to show their economic strength.

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< p > registered capital < a href= "http://www.91se91.com/news/index_c.asp" > paid up system < /a > changed to subscribe system, and it is not equal to shareholders who subscribe to registered capital, they can never pay the capital.

On the contrary, after the company is established, shareholders must pay their capital contributions in time and in full in accordance with the time, amount and method of capital payment recorded in the articles of association.

If shareholders fail to fulfill their obligations in accordance with the company's articles of association, they must bear civil liability for the company, other original shareholders and creditors of the company.

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< p > < strong > (three) reserved legal minimum registration in special industries < a href= "http://www.91se91.com/news/index_c.asp" > capital system < /a > /strong > /p >

< p > the registration scheme of registered capital has listed 27 industries which have not implemented the registered capital subscription system. This regulation is in line with international practice, and has sufficient reasons for its existence. However, this exception is based on the law.

Moreover, the minimum registered capital system neither guarantees the absolute security of creditors, nor guarantees the absolute safety of shareholders.

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