Q: Does the registered capital of company need verification?

A: The registered capital, no matter how much it is, does not need verification.

Q: What is the difference and relation between registered capital and issue of shares?

A: Registered capital shall be registered with Government first while issue of shares shall be made after capital is registered, so the amount of issue of shares shall not exceed that of the registered capital. Shareholders shall fully pay the issue of shares on proportion of shareholding instead of registered capital. The future obligation to be incurred by the company shall be calculated on the basis of issue of shares.

Q: What does the registered capital represent?

A: The Registered capital represents:

*The company's maximum financing capacity: The company is financed through issuing new shares to its existing shareholders or new investors. The greater the registered capital amount, the more the company is financed.

*Shareholders' maximum liability: If the company liquidates, shareholders shall bear the liability limited to the issued but not fully paid capital, instead of registered capital.

Q: How much registered capital will be needed in company incorporation?

A: The amount of registered capital represents the company's financing capacity, and in addition, the registered capital can also be deemed as shareholders' undertaking to future obligations to be incurred by the company. The greater the registered capital amount, the higher the confidence the public will have on the company. Hong Kong company of limited liability shall have a standard registered capital of HKD10,000.

Q: What governmental fees need to be paid for increasing Registered capital?

A: No government fee shall be paid when an enterprise increasing its registered capital.