What exactly is the difference between the share deposit and the share capital?

Unfortunately, the terms are very often confused or used as synonyms.The difference is simply explained by the example of a limited liability company.

Share capital:

The share capital is an amount of at least 25,000 euros, which is required by the GmbH Act as a guarantee amount.The founders of a limited liability company must jointly raise a minimum capital of 25,000 euros. The company is liable with this amount in the event of damage. An alternative name for the share capital is therefore also the amount of liability. The private assets of the shareholders remain untouched. The share capital is deposited as proof on a business account and is recorded in the commercial register entry when it is established.

On the start-up date, however, the founders of the GmbH only have to prove 50% (12,500 euros) of the required share capital (here you will find out more about the formalities and to register for the establishment of a limited liabilitycompany).

Important: In the event of liability or insolvency, the Company is nevertheless liable at any time with the full sum of 25,000 euros.

My tip to our founders at firma.de is always the same: Don’t start if the necessary share capital is missing.Even if the proof of EUR 12,500 is sufficient at first, undercapitalisation in the event of liability can have serious consequences. In the worst case, there is a liability for the seizure and the private property is also gone.

A few brief facts about share capital:

  • At the time of foundation, a higher amount can also be paid as share capital.
  • The share capital may consist of cash deposits, contributions in kind or a combination of both types of assets.
  • The share capital can be increased and reduced.

The entry in the commercial register changes.

  • Without the necessary share capital for a limited liability company, the establishment of a UG (limited liability) is possible.
  • If you want to know more, this article will certainly help you.

    Root deposit:

    The regular contribution is the pro rata amount that shareholders contribute to the total share capital.The amounts may vary.

    For example:

    Shareholders 1 and Shareholder 2 each pay a regular deposit of 10,000 euros.

    Shareholder 3 pays a regular deposit of 5,000 euros.In total, this results in the share capital of 25,000 euros of the GmbH.

    At the time of the establishment, each shareholder must make at least 25% of his or her parent contribution demonstrably.In total, however, EUR 12,500 must be achieved. In the example, shareholders 1 and shareholder 2 would each have to deposit at least 2,500 euros, and shareholders 3 1,250 euros.

    • The exception confirms the rule: In the case of a one-person company, the amount of the share capital corresponds to that of the share deposit, since there is only one shareholder.
    • Cash deposits, contributions in kind or mixed deposits are also possible for the individual regular deposit.

    The share capital of UG is at least 1 euro per founder.This means that each founder must deposit at least one regular deposit of 1 euro. In the case of a three-person UG, the minimum share capital is therefore 3 euros.

    In a nutshell: The share capital is the total amount of liability of a corporation.The regular contribution is the share that an individual shareholder bears in the share capital.

    Leave a Reply