Capital increase of a company refers to the act of increasing registered capital in accordance with the law in order to expand its business scale, broaden its business and improve its credit level. The company's capital increase is divided into the following two situations: 1, and the enterprise passively increases capital. Register 20% of the company first, and add 80% of the registered capital within two years after registration; Some projects need funds; 2. Enterprises actively increase capital. If the capital of the enterprise is consistent with the registered capital, the enterprise shall increase the registered capital through capital increase. Where an enterprise as a legal person and a foreign-invested enterprise increase their registered capital, if the sum of the increased part and the original registered capital does not exceed 6,543,800,000 yuan, the registration fee shall be charged at 0.8% of the increased part; If it exceeds10 million yuan, the registration fee will be charged at 0.4% of the excess; If it exceeds 1 and 1 billion yuan, no registration fee will be charged.

The establishment of a joint-stock company to issue new shares is called capital increase. Listed companies often apply for capital increase (paid share allotment) or new capital increase of capital reserve (free share allotment) due to business needs.