When the registered capital of a foreign-invested company is not sufficient for actual operations and additional funds need to be raised, what should be done?

外商投资公司原定的注册资本不够实际运营，需要筹集更多资金时，怎么办呢？

Should the registered capital be increased or should a loan be obtained?

是增加注册资本？还是借贷？

Registered capital is the basis and guarantee for the operation of a company and is a legal commitment by the company. According to the Company Law, the registered capital of a company cannot be withdrawn halfway after registration. This means that the money not only has to fulfil the legal commitment, but also needs to wait until the company is cancelled and liquidated before it can be taken away.

注册资本时企业开展业务的基础和保证，时企业在法律上的承诺。根据《公司法》规定，企业的注册资本不可以在注册后中途取走。意味着这笔钱不但是要履行法律的承诺，还需要等到公司注销清算时，才能取走。

Therefore, undoubtedly, borrowing is a good fundraising solution for foreign-invested companies in China, which can meet their actual financial needs while avoiding the constraints of registered capital. In this article, we will discuss the requirements for borrowing from overseas parent companies.

那么无疑借贷就是一个很好的筹钱方案。可以解决中国外商公司运营的资金实际需求，同时无需受注册资本的约束。那么我们本文就来说下向境外母公司借贷的要求。

 Case background 

 案例背景 

ABC Company is a foreign-invested enterprise established in China, and XYZ Company is its parent company (i.e. investor and shareholder) registered outside of China. In 2023, the subsidiary company in China (ABC Company) needs to borrow from its overseas parent company (XYZ Company) to relieve the shortage of working capital.

ABC公司是在中国境内设立的外商投资企业，XYZ公司的注册地在中国境外，是ABC公司的母公司（即：投资方，股东）。2023年，为缓解流动资金的不足，境内子公司（ABC公司）首次需要向境外母公司（XYZ公司）借款。

 Operation steps 

 操作步骤 

As foreign exchange transactions are involved, ABC Company needs to prepare the following before obtaining overseas loans:

因为涉及外汇交易，ABC公司在取得境外借款之前需要做以下准备：

①ABC Company completes the financial statement audit for the previous year (2022) and obtains an Audit Report;

①ABC公司完成上一年度（2022年）的财务报表审计，获得《审计报告》；

②ABC Company prepares the Macro-prudential Cross-border Financing Risk-weighted Balance Sheet to determine the maximum limit for this loan;

②ABC公司准备《宏观审慎跨境融资风险加权余额情况表》，提前确定本次借款的最高限额；

③ABC Company and XYZ Company sign a Foreign Debt Loan Agreement;

③ABC公司与XYZ公司签署《外债借款合同》；

④ABC Company submits a written application to the State Administration of Foreign Exchange (SAFE);

④ABC公司撰写《书面申请》提交外管局；

⑤At least 7 days before the loan start date, ABC Company needs to provide the following materials to SAFE to apply for approval.

·Audit Report;

·Macro-prudential Cross-border Financing Risk-weighted Balance Sheet;

·Foreign Debt Loan Agreement;

·Written application;

·A copy of Business License;

⑤借款起息日之前至少7天以上，ABC公司提供一下材料到外管局办理申请批复。

·《审计报告》；

·《宏观审慎跨境融资风险加权余额情况表》；

·《外债借款合同》；

·《书面申请》；

·《营业执照副本》；

⑥After the SAFE's foreign debt registration procedures are completed, ABC Company will obtain the Domestic Institutions' Foreign Debt Signing Status Sheet and the Foreign Debt Signing Business Registration Certificate;

⑥外汇管理局外债登记手续办结后，ABC公司将获得《境内机构外债签约情况表》和《外债签约业务登记凭证》；

⑦ABC Company prepares the "Special Account for Foreign Debt Finance Chapter";

⑦ABC公司准备“外债专户财务专用章”；

⑧ABC Company prepares a "Situation Explanation" according to the bank's requirements;

⑧按银行要求ABC公司撰写《情况说明》；

⑨ABC Company completes the foreign debt special account opening procedures at the bank;

⑨ABC公司去银行办理外债专户的开户手续；

⑩The account opening procedures for special accounts for foreign debt is completed, ABC Company will be given the "application for the opening of a unit bank settlement account", access to the bank account number of the special account for foreign debt, ABC Company can instruct the overseas XYZ Company to remit borrowings to the territory.

⑩外债专户的开户手续完成后，ABC公司将获得《开立单位银行结算账户申请书》，获得外债专户的银行账号，ABC公司就可以指示境外的XYZ公司向境内汇入借款。

The above is a detailed operation process. If you have similar business finance-related questions that require our professional team's consultation and analysis, please continue to follow us for more information analysis, or you can book an appointment with our consultants for consultation.

以上是详细的操作流程，如果有这类商业财务相关问题需要我们的专业团队咨询分析的。请持续关注更多信息分析，也可以单独约我们的顾问咨询。

Author | Alex

     作者 | Alex