The minimum registered capital requirement has been lowered to the local investor:
for limited liability companies, from RMB 100,000 to RMB 30,000 (approx.USD 3,750); and for companies limited by shares, from RMB 10,000,000 to RMB 5,000,000 (approx. USD 625,000).

2006 Company Law Article 26: The registered capital of a limited liability company shall be the total amount of capital contributions subscribed to by all the shareholders registered in the company registration authority. The amount of the initial capital contributions made by all shareholders shall not be less than 20% of the registered capital, nor less than the statutory minimum amount of registered capital, the margin shall be paid off by the shareholders within 2 years from the day when the company is established; for an investment company, it may be paid off within 5 years. The minimum amount of registered capital of a limited liability company shall be RMB 30, 000 yuan. If any law or administrative regulation prescribes a relatively higher minimum amount of registered capital of a limited liability company, the provisions of that law or administrative regulation shall prevail.

2004 Company Law Article 23:
The registered capital is the total amount of investment paid in by all the shareholders registered with the registration department.

The amount of registered capital should not be less than the amount specified below:

1. for a company mainly engaging in production operations, RMB500,000;

2. for a company mainly engaging in wholesales, RMB500,000;

3. for a company mainly engaging in retail sales, RMB300,000;

4. for a company engaging in technology development, consulting and
services, RMB100,000.

If the minimum amount of registered capital of a limited liability company of a given trade should be higher than those provided for in the preceding paragraph, it shall be determined separately by law or administrative decrees.

2006 Company Law Article 81:
When a joint stock limited company is established by promotion, its registered capital shall be the total capital stock subscribed by all the promoters as registered in the company registration authority. The minimum amount of initial capital contributions to be made by all promoters shall be not less than 20% of the total registered capital, the remaining amount shall be paid off by the promoters within 2 years from the day when the company is established, while for an investment company, the remaining amount may be paid off within 5 years. Before the registered capital is paid off, no stock may be offered to others for subscription.
When a joint stock limited company is established by stock floatation, its registered capital shall be the total actually paid capital stock as registered in the company registration authority. The minimum amount of the registered capital of a joint stock limited company shall be RMB 5 million yuan. If any law or administrative regulation provides a relatively higher minimum amount of registered capital, such provision shall prevail.

2004 Company Law Article 78 The registered capital of a joint stock company limited shall be the total share capital which has been registered with the registration department and which has been actually received. The minimum amount of registered capital of a joint stock company limited shall be RMB10 million. Requirements for the minimum amount of the registered capital of a joint stock company limited to be higher than the above amount are provided for in separate laws or administrative decrees.

This is a good news to the local investor, the 2006 Company Law allows the registered capital of a company to be fully contributed within 2 years after its establishment. The above-mentioned changes are intended to make efficient use of investors' funds and encourage good practice in making contributions to the registered capital of a company.