How to Resolve the Paid-in Registered Capital Issue for Company Registration
First, domestic tax pressure has increased. Many projects no longer accept individual participation; enterprise qualifications are now required. Additionally, areas with high complaint volumes or greater risks require paid-in (actual) capital as a baseline for review. In some cases, business licenses mandate a registered capital of at least 1 million RMB. Since many people lack the liquid funds to cover this, they seek solutions for fulfilling paid-in capital requirements during company registration.
Currently, many intermediary agencies offer services such as product valuations, using the assessed value as paid-in capital to complete capital verification and modify the registered capital. For example, they can provide software copyright evaluations, registered office addresses, trademarks, patents, etc. Moreover, if you don’t already have these assets, some agencies offer an end-to-end service that includes purchasing them. While this may seem convenient, the risks are substantial.
After a fraudulent valuation, the difference between the assessed amount and the actual funds provided must be subject to a 20% income tax. For instance, if the registered capital is assessed at 1 million RMB but you only contribute 10,000 RMB in actual funds, you would need to pay income tax on the 990,000 RMB difference (990,000 × 20%). Furthermore, if investigated later, penalties could escalate to criminal charges such as false capital contribution or fraud. Proper, legitimate valuations do not carry these issues.
The main problem lies in the high tax cost incurred before making such modifications.