Setting up · injecting capital · restructuring

Capital verification for foreign-invested companies

When capital comes into a Chinese entity, someone has to confirm it actually arrived, from the entity that was supposed to send it, into the right account, in the form that was registered. That confirmation is the capital verification report, and it is what your bank and the foreign-exchange bureau ask for.

  • Confirms the money really arrived — bank records traced, not just a screenshot of a transfer
  • Checks the source matches the filing — funds traced back to the registered investor entity
  • Non-cash contributions handled — equipment, intellectual property and retained-profit capitalisation
  • English report as standard — usable by your head office and your bank without translation

Timing

When you will be asked for this report

The old blanket requirement is gone, but the situations below still trigger it. If you are in one of them, you will be asked for the report before the transaction completes.

Injecting registered capital

Where the industry or the registration still requires paid-in capital, or where the shareholders have committed to a paid-in schedule.

Converting or using capital account funds

Banks frequently require a capital verification report before capital-account funds are converted into RMB or applied to their registered use.

Capital increase, reduction or share transfer

Any change to registered capital or shareholding usually needs the position verified first.

Scope of services

What the work actually covers

Written out in detail on purpose. If you are comparing firms, this is the list to put side by side with theirs.

Deliverables

What lands on your desk

Capital verification report

The signed report stating the amount, form and date of capital actually received, in English or bilingual.

Contribution schedule

Shareholder-by-shareholder breakdown of subscribed, paid-in and outstanding capital.

Bank confirmation evidence

The underlying bank evidence behind every figure in the report, in a form your bank accepts.

Source-of-funds analysis

A short written trail from the remitting entity to the receiving capital account.

Filing guidance

What to file next, and with whom, based on what your transaction actually is.

Ongoing query support

If your bank or the local authority comes back with questions, we answer them for a stated period after issue.

Process

From first email to finished work

01  You send the basics

Entity type, what has been requested, and when it is due. One email is enough to start.

02  Scope and fixed fee

We come back within one business day with a written scope, a fixed fee and dates.

03  Documents and fieldwork

One document request list. We work from it, and visit site only where the work genuinely needs it.

04  Delivery and follow-through

Signed output in English or bilingual, plus support through whatever filing follows.

Fees

How we price it

Fixed, in writing, before fieldwork starts. The drivers below are the ones that actually move the number — we tell you which of them apply to you in the first reply, not after you have signed.

  • Entity size, number of bank accounts and transaction volume
  • Whether prior-year figures are audited or management-prepared
  • Reporting language: English, Chinese, or bilingual
  • Whether group reporting requires a GAAP reconciliation
  • How much of the bookkeeping we have to rebuild first

FAQ

Questions about capital verification

I thought China abolished the paid-in capital requirement.

The 2014 reform moved most domestic companies to a subscription system. It did not remove capital verification where it is still needed: regulated industries, non-cash contributions, capital-account fund use, and most changes to registered capital.

Can intellectual property be contributed as capital?

Yes, and it is common. It needs a valuation, evidence of title transfer, and it must be within the approved business scope. We verify all three and say so in the report.

How long does it take?

Once we have the bank evidence and the corporate documents, the report is normally issued within a few working days. We confirm the actual date when we see your documents.

Will our bank accept your report?

Banks in China accept capital verification reports from licensed PRC CPA firms. We are licensed by the Guangdong Department of Finance, and our practice number appears on the report.

Can the report be in English?

Yes, English or bilingual, written by the signing accountant, with no surcharge.

Tell us what the capital is for.

Inbound remittance, capital increase, share transfer, or a bank that has just asked for a document you do not have. Send us the details and we will tell you exactly what is needed.