Second, 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.
Third, the registered capital of the company after capital reduction shall not be lower than the statutory minimum.
Article 4 When a company reduces its registered capital, it shall register the change with the company registration authority according to law.
The process needs to be approved by the Foreign Trade and Economic Cooperation Bureau and the Industrial and Commercial Bureau, and the tax registration certificate needs to be changed. The procedure is complicated. Under normal circumstances, the Foreign Trade and Economic Cooperation Bureau will quickly approve the capital increase, but will not easily agree to the capital reduction. Therefore, even if the above legal conditions are met, it is very difficult to go through the formalities.