1. Capital increase. Where a limited liability company increases its capital, the shareholders shall pay the subscribed capital contribution in full and on schedule after they subscribe for the new capital increase; Where a joint stock limited company increases its capital, it shall subscribe for new shares and pay the capital contribution;

2. Capital reduction. When a company needs to reduce its registered capital, it must prepare a balance sheet and a list of assets.

legal ground

Article 177 of the Company Law

When a company needs to reduce its registered capital, it must prepare a balance sheet and a list of assets.

The company shall notify the creditors within ten days from the date of making the resolution to reduce the registered capital, and make an announcement in the newspaper within thirty days. Creditors have the right to require the company to pay off debts or provide corresponding guarantees within 30 days from the date of receiving the notice, or within 45 days from the date of announcement if they have not received the notice.

Article 178

When a limited liability company increases its registered capital, the contribution of the newly-increased capital subscribed by shareholders shall be implemented in accordance with the relevant provisions of this Law on the contribution of limited liability companies.

When a joint stock limited company issues new shares to increase its registered capital, shareholders shall subscribe for new shares in accordance with the relevant provisions of this Law on the establishment of a joint stock limited company and the payment of shares.