In 2021, How Much Charter Capital is Required to Establish a Company?

Clause 34 Article 4 of the Enterprise Law 2020 (Effective from January 1, 2021) stipulates the charter capital as follows:

Charter capital is the total value of assets contributed or committed to be contributed by the company members or the company owner when establishing a limited liability company or partnership; it is the total par value of shares sold or registered to be purchased when establishing a joint-stock company.

Furthermore, the 2020 Enterprise Law does not stipulate any specific capital amount for the establishment of an enterprise.

Thus, determining the charter capital of a newly established company will depend on the financial capacity of the contributing members, the purpose of operation, and the field of operation. Therefore, in your case, if you want to establish a company in 2021, the charter capital should be determined based on factors such as:

- Financial capacity;

- The field of operation of the company;

- Scope, scale, and type of operation of the company;

- Projected expenses for the actual activities of the company after establishment;

- .....

However, you should note that if your company engages in business sectors that require statutory capital or deposit requirements, the charter capital of your company must be at least equal to the statutory capital or meet the deposit requirements as stipulated by law.

Sincerely!