For start-up enterprises, shareholders contributing capital in the form of currency is the most common way of contribution. But behind what seems like a simple "payment" operation, there are actually many "minefields" in finance and taxation. Exclusive Easy Finance and Taxation uses simple and understandable language, from the professional perspectives of accounting and auditing, to break down the key points to note for monetary investment for entrepreneurs, helping them make scientific decisions and master the essential finance and taxation survival guide - save money and comply!

What is monetary Contribution?

Monetary contribution refers to the injection of capital into an enterprise by shareholders in the form of cash (including bank deposits).

For instance, Zhang SAN and Li Si jointly opened a milk tea shop and each transferred 500,000 yuan to the company's account as the start-up capital. This is a typical case of monetary contribution.

Five Key Points to Note Regarding Monetary Contributions (Highlight!)"

1.The capital contribution account must be compliant

       The transfer must be made from the shareholder's own account

       It is prohibited to make payments through third parties (such as friends' or relatives' accounts), otherwise it may be regarded as "false capital contribution".

       The receiving account must be the company's capital verification account

       A temporary capital verification account must be opened at a bank and cannot be directly transferred to a personal account or business account.

       Audit focus: Accountants will verify whether the payer's name on the bank statement is exactly the same as the shareholder's name.

2.The source of funds must be legal

       Complete proof of fund flow (such as salary statements, redemption records of financial products, etc.) must be retained.

       For large cash deposits (more than 50,000 yuan per transaction), a legal source explanation must be provided

       Beware of "bridge funds" (borrowing money to serve as registered capital and withdrawing it immediately after capital verification)

Real case: A certain company used a short-term loan of 1 million yuan for capital verification and immediately repaid it, which was determined by the tax bureau as capital withdrawal and a fine of 200,000 yuan was imposed.

3.The timing of investment must be precise

       The subscribed capital system does not mean no actual payment is required. The funds must be credited to the account at the time stipulated in the company's articles of association

       It is recommended that the first actual payment be completed within three months after the issuance of the business license

       The extension of capital contribution requires the consent of all shareholders and the amendment of the articles of association

       Accounting treatment: The paid-in capital account must be recorded according to the shareholders' details and cannot be mixed.

4.The capital verification process cannot be skipped

       The bank issues a "Confirmation Letter" to confirm the amount received

       An accounting firm issues a capital verification report (it is recommended to choose a registered firm)

       When submitting the annual report to the industry and Commerce Department, the actual paid-in information must be disclosed

       Audit red line: Bookkeeping without capital verification will be identified as accounting fraud.

5.Tax and financial treatment should be standardized

       Bank receipts and resolutions of the shareholders' meeting should be attached to the accounting vouchers

       The stamp duty on paid-in capital is paid at 0.25‰ (for example, 250 yuan is paid for a 1 million yuan investment).

       The capital contribution funds cannot be directly used for the personal consumption of shareholders

       Common misconception: Mistakenly recording capital contributions as "Other payables" will lead to distortion of the balance sheet.

Special Scenario Response Guide (A Must-Have for Entrepreneurs

What Can a tax and finance company Do for You?

Capital verification escort: Full-process guidance on account opening, transfer, and obtaining the capital verification report

Risk diagnosis: Identify potential risks such as capital withdrawal and false capital injection in advance

Accounting trusteeship: Establish a standardized paid-in capital accounting system

Policy Interpretation: In-depth Analysis of the Latest Regulations on the Administration of Registered Capital

Audit support: Issue a capital verification audit report with an unqualified opinion

       Monetary contribution may seem simple, but it actually involves multiple regulations such as the Company Law, the Accounting Law, and the Tax Collection and Administration Law. It is recommended that entrepreneurs consult professional financial and tax institutions before investing. We offer free financial and tax policy consultation to help you avoid 97% of common investment risks.