Share capital

What is the company's share capital and how much does its value matter?
The social capital is defined as the sum of all the contributions made by the associates in order to establish and operate a company.
From a legal point of view, the share capital represents the general pledge of creditors, and from an accounting point of view, it is distinguished from the patrimonial asset of the company. At the time of incorporation of the company, the share capital is equal to the patrimonial asset, but as the company obtains profit, the patrimonial asset exceeds the share capital. The extent to which the associates contribute to the formation of the share capital is also the extent to which they participate in the distribution of the profit in the form of dividends .

What is the minimum share capital value and how much does its value matter?
  The minimum value of the share capital is 1 leu. However, we do not recommend a too low value of the social capital, especially if you are considering obtaining financing. Banks are hesitant to grant loans to companies with a low share capital, because the risk of default is much higher and the applicant does not represent sufficient credibility.

Does the share capital have to be kept in the account or can I use it?
Yes, the company can dispose of the share capital, depending on how it wants and even immediately after its establishment. The capital can also be deposited in the cashier of the company, based on a receipt.

Can the share capital be reduced or increased?
Yes, the share capital can be changed at any time, provided that the legal provisions are respected and the company's documents are amended, respectively the company's constitutive document is updated with the new value. Careful! This change must also be submitted to the Trade Register!

Are there activities for which the law requires a minimum capital?
Yes, for example if you want to set up a travel agency, the minimum social capital must be 25,000 lei.

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