What is a Capital Verification Report?
A capital verification report is an official document issued by a licensed Chinese accounting firm to confirm that a company has injected the registered capital required by law. This report provides assurance that the shareholders have made the necessary capital contributions as stated in the company’s Articles of Association.
Relevance in China
In China, capital verification reports were previously mandatory for all companies upon registration, but regulatory changes have made them optional for most businesses. However, certain industries, high-registered capital commitments, and government-supervised businesses may still require them to prove financial stability.
How to Obtain a Capital Verification Report
- Engage a licensed Chinese accounting firm.
- Deposit the required capital into the company’s designated capital account.
- Provide proof of the capital transfer, such as bank statements.
- The accounting firm reviews the transaction and issues a capital verification report.
- Submit the report to relevant government authorities if required.