Capital verification report (验资报告) | Practical Law

Capital verification report (验资报告) | Practical Law

Capital verification report (验资报告)

Capital verification report (验资报告)

Practical Law UK Glossary 2-522-2684 (Approx. 2 pages)

Glossary

Capital verification report (验资报告)

A report issued by a certified public accounting firm that verifies the paid-in capital of a Chinese company by reviewing documents including:
  • Internal company payment records.
  • Bank confirmation documents.
  • Confirmation from the State Administration of Foreign Exchange (SAFE).
  • The company's articles of association.
  • The company's business licence.
Mandatory capital verification as a matter of law has been abolished for both FIEs and Chinese domestic companies since 2014. In practice, some companies might still obtain copies of capital verification reports at the request of a shareholder or for other purposes. (For more information, see Practice note, Foreign exchange control in China: Capital conversion.)