Whether the capital reserve formed by equity incentive can be converted into share capital or not depends on whether the tax is divided into different objects, whether they are individuals or legal persons, whether they are high-tech SMEs, and whether there is room for tax planning. Generally speaking, reserve is to expand the share capital without having to pay for it. The paid-in capital corresponding to the registered capital of a general enterprise is this share capital. Generally speaking, capital is of little significance, unlike the fact that you have more shares after capitalization, and it is easier to realize the stock price increase after the stock price comes down;

Personal opinion: The Company Law only stipulates that shareholders' rights and interests from other sources, such as capital reserve, can be divided into dividends without the proportion of paid-in capital if all shareholders agree unanimously, and Article 187 of the Company Law stipulates that "the company's property is left after paying liquidation expenses, employees' wages, social insurance expenses and statutory compensation, paying taxes owed and paying off the company's debts. Limited liability companies are distributed according to the proportion of shareholders' capital contribution, and joint stock limited companies are distributed according to the proportion of shares held by shareholders. Therefore, it is personally understood that the capital reserve formed by shareholders' premium contribution should be enjoyed by all shareholders according to the proportion of equity, and it cannot be agreed to belong to a shareholder alone.