Share capital is the contribution made by partners so that a company can begin to develop its activity.

The people who contribute the share capital will become partners or creditors and will have different rights regarding the company, as well as different responsibilities.

When are capital contributions made?

Share capital contributions occur at the beginning of the activity, to be able to cover the costs of startup, but once the company is established, the share capital can be increased through contributions called capital increases. The share capital can also be increased to be able to face debts, increase reserves…

Minimum share capital

The capital contribution for the beginning of a company’s activity has a minimum predetermined by law depending on the type of company you wish to establish.

For corporations the minimum share capital amount is €60,000.

For limited companies, the amount is somewhat lower, and would be €3,000.

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We hope this information is very useful to you.