What is authorized capital, why is it needed, and who manages it?

Authorized capital is a mandatory contribution made by founders when establishing a commercial organization.

It represents the shareholding of each participant, influences the level of trust with creditors, and can be used for the company's start-up expenses.

You can contribute cash or property to authorized capital.
The larger the contribution, the greater the stake in the business, meaning greater dividends and influence in decision-making.

If all shares are equal, the rights of the participants are also equal.

How much must be contributed?

By law, every commercial company is required to have authorized capital. The minimum amount for financial companies is €50,000 or more. There is no upper limit—the amount can be any. The contribution of each shareholder is determined in advance and set forth in the company's incorporation resolution. If there is only one founder, they contribute the entire amount themselves. The authorized capital can be changed, but it must not fall below the established minimum. The decision to increase or decrease the capital is made by the founders: if there are several, at a general meeting; if there is only one, individually. The changes must then be registered with the tax authorities.

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