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Changes in the authorized capital

On the territory of our country, the capital of the authorized type is formed from the date of the meeting of founders until the end of the year after the state registration. In the future, changes in the amount of this capital are possible, provided that the legal entity, a person at a meeting of higher authorities decided to increase or decrease it in size.

Authorized (or folded) capital allows members of the company to invest funds, things, proprietary or alienable rights. But it is important to remember that each contribution must have a certain value.

It is also important to note that the current legislation provides for compliance with the conditions in the case of creating certain categories of legal entities. in particular, when creating a company of shareholders, the accumulated capital cannot be less than 1250 minimum wages. The exact amount is determined taking into account the date of creation of the joint stock company and the size of the minimum wage rate. In the case of creating an LLC, the amount of authorized capital is not determined at the legal level.

LLC authorized capital

In the case of an LLC, the process of forming the authorized capital is the same as when it is changed (from the date of registration until the end of the year after state registration). When omission designated by law, if the authorized capital has not been formed, the society shall convene a meeting of its shareholders to adopting one of several possible solutions: the exclusion of participants who did not contribute (the made share is distributed among the remaining participants or perhaps a reduction in the amount of deflated capital), or the society is liquidated. It is important to note that reducing the amount of capital of the authorized type without permission from creditors is not allowed.

After the full amount of the authorized capital is formed, the company can continue to operate. You can change the size of an LLC at any time. The increase can occur through the introduction of property, money, and other income.

In Kyiv, the implementation of the procedure for increasing the capital of the statutory type is very difficult, but in compliance with all the rules and regulations prescribed by law, during its change in the legal entity, you won’t have any problems.

JSC authorized capital

Capital formation in this case takes into account the amount of the nominal appraised value of all the company’s shares. Further, the procedure is implemented based on the current procedure established by the National securities and stock market Commission.

You can increase the amount of the authorized capital for a joint stock company by increasing the nominal appraised value of shares or by placing additional public shares.

Change in share capital services from Kasyanenko & Partners Law Company

Kasyanenko & Partners Law Company lawyers are ready to undertake obligations to solve problems related to increasing or decreasing the size of the authorized capital. The entire procedure is carried out following the organizational form of your company. We are ready to assist in documenting the procedure for changing the capital, to pass approval in all state instances.

Dmytro Kasyanenko

Lawyer, managing partner of the Kasyanenko & Partners Law Firm. Since 2002, he has gained extensive legal experience in key positions in business structures and the public sector in the field of law and finance.

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