Recently, four super enterprises with registered capital exceeding 7 trillion yuan have emerged in Sanya, Hainan. According to enterprise inspection data, all four companies have a registered capital of 950 billion euros, which is equivalent to approximately 7.35 trillion yuan in Chinese yuan at the exchange rate of October 23; The nature of the enterprises is all investment groups, registered at the end of September or early October, and registered at the 10th floor of Glory Century Building in Sanya City. What is the concept of a registered capital exceeding 7 trillion yuan? By comparison, the registered capital of Industrial and Commercial Bank of China, a Fortune 500 company, is approximately 356.4 billion yuan; The registered capital of communication giant Huawei is approximately 40.6 billion yuan. In addition, in 2022, the GDP of Hainan Province was 681.822 billion yuan, which is more than 10 times that of Hainan Province. Four super enterprises with a registered capital of over 7 trillion yuan have settled in a building, and Sanya's investment promotion work this year has surpassed the rest of the country. The obviously unreasonable registered capital and other industrial and commercial registration information have led some netizens to suspect that these companies are "leather bag companies". It is still uncertain whether it is a leather bag company or a trillion yuan enterprise. However, this reminds businesses and the public to pay attention to the risks of registered capital. Registered capital refers to the amount of capital subscribed by all shareholders registered with the industrial and commercial registration. Before March 1, 2014, China implemented a paid in system, where the initial capital contribution of shareholders shall not be less than 20% of the registered capital, and the remaining portion shall be fully paid by shareholders within two years from the date of establishment of the company. After the reform of the commercial system, China implemented a subscription system, which no longer limited the amount of capital contributions or required full payment deadlines. In theory, it is possible to set up a company for 0 yuan. The reform of the subscription system is in line with international practices and meets the requirements of a convenient and efficient business environment. Most countries and regions with the highest global business environment, such as Singapore, the United States, and Hong Kong, China, implement a subscription system. After implementing the subscription system in China, the funding threshold for entrepreneurship has been lowered, laying the foundation for mass entrepreneurship and innovation in the following years, and stimulating market vitality. The original intention of implementing the subscription system was to allow entrepreneurs to go light and use their limited funds on the cutting edge. However, in practical implementation, there have also been some drawbacks to the subscription system. Many people believe that enterprises with more registered capital are definitely strong, and often overlook that paid in capital and subscribed capital are not the same thing. In addition, the paid in capital information is not a mandatory public matter and cannot be found by outsiders. Some enterprises may use this to exaggerate their registered capital, extend their subscription period, evade their investment obligations, affect transaction safety, harm the interests of creditors, or engage in illegal business activities. In recent years, it has become a consensus that the subscription system needs to be continuously improved. The Company Law (Third Review Draft of Revised Draft) proposes to stipulate that shareholders of a company must pay their subscribed registered capital in full within 5 years. This has sent a signal to remind entrepreneurs to be more rational when subscribing to registered capital, and to carefully subscribe to registered capital based on shareholder strength and actual business needs. Over the past 40 years of reform and opening up, enterprises and consumers have also gained a wide range of knowledge. "Raising the banner as a tiger skin" may not necessarily intimidate people, but it is also easy to make jokes. When looking for partners, companies are more willing to connect with those who are doing business separately, exceeding the normal registered capital
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：economic daily
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