(1) Capital reserves, surplus reserves, and undistributed profits accumulated by foreign-invested enterprises are converted into Registered capital;
(2 ) to increase registered capital with dividends payable and interest payable thereunder, that is, cash dividends or profits that have not yet been paid by foreign-invested enterprises to foreign investors according to the profit distribution plan, and the interest accrued thereon;
(3) Convert after-tax profits in the form of monetary funds obtained from establishing other foreign-invested enterprises in China to increase registered capital;
(4) Increase the registered capital with monetary funds derived from liquidation, equity transfer, advance recovery of investment, capital reduction, etc. from other foreign-invested enterprises established in China.
RMB investment under the above circumstances can enjoy the same treatment as foreign exchange investment in terms of policies. When verifying such capital investment, the certified public accountant shall verify its value on the basis of audit and in accordance with relevant national regulations, and examine whether the above-mentioned increase in registered capital has been approved by the highest authority of the foreign-invested enterprise and the competent government department. A letter of inquiry confirming the foreign investment situation should be issued to the foreign exchange administration department at the place where the enterprise is registered, and at the same time, the authenticity and compliance of the contents of the relevant documents should be verified based on the foreign investor's investment method, capital approval documents, etc.
As for the exchange rate determination of the above-mentioned investment in RMB, if the above-mentioned situations (3) and (4) occur, the exchange rate will be determined based on the day when the foreign-invested enterprise actually receives the payment. The foreign exchange rate announced by the People's Bank of China is converted into registered capital. There are currently no unified regulations for the aforementioned situations (1) and (2). When reviewing the reply letter to the inquiry letter, the foreign exchange bureau generally refers to the exchange rate on the previous working day that it accepted or based on the exchange rate determined by the enterprise itself. Since capital reserves, surplus reserves, undistributed profits and dividends payable are reflected in the company's financial statements in RMB, the time for conversion to registered capital is different. Due to changes in exchange rates, the verification amount of registered capital will be affected. , if the exchange rate changes and the amount of RMB to be transferred is large, the impact will be more obvious. It is recommended that when the board of directors or shareholders' meeting and other bodies with the power to approve decide to increase the registered capital, the amount of the registered capital to be increased should be determined based on the exchange rate on the working day before the decision, and written down in the meeting decision, so as to clarify the intended transfer. Increased RMB amount and transfer to increaseThe amount of registered capital can be reduced to a minimum to minimize the impact of the exchange rate. When reviewing the reply letter of the inquiry letter, the foreign exchange bureau will approve it based on the exchange rate determined by the enterprise. Of course, if the registered capital of a foreign-invested enterprise registered with the industrial and commercial department is RMB, there will be no differential impact caused by the exchange rate.
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