Change, increase, decrease in authorized capital

The authorized capital is the total amount of money, real estate, equipment and securities in monetary terms, which the founders contributed during the state registration of the company or at the time specified by the current law after the data was entered into the register. The size of the authorized capital is the minimum amount of property of the company. At the same time, the latter includes the shares of all participants.

Taking into account the current legislation, 6 months are allotted for the formation of the Criminal Code from the date of state registration of the company. If formation did not take place due to non-contribution by individual founders, other participants must act as follows:

• expel a participant with a debt from the company;
• reduce the authorized capital by the share of all participants with debt;
• redistribute the unpaid authorized share among other founders without making changes to the charter of the LLC (the procedure implies the subsequent payment of the debt);
• liquidate the limited liability company.

Services for making changes to the authorized capital

We can order an increase and decrease in the authorized capital of the company. Corrections will be made to the founding documentation and registered with the relevant government agencies. Now we will tell you more about the procedure for increasing and decreasing the authorized capital.

Increase in LLC authorized capital

There are a number of reasons for increasing the authorized capital (AC):

• a new member wants to enter the society (at the same time, he is ready to contribute to the AC);
• one of the participants plans to increase its share in the fund;
• The company has new investors or creditors, for whom the amount of AC 一 is a guarantor of their interests.

It will be possible to change the charter of an LLC only after all the founders make contributions and form a fund.

There are several ways to increase the authorized capital, namely:

• increase the shares of all participants;
• increase the share of one or more founders;
• accept and register a new member;
• reinvest retained earnings.

To increase the LLC authorized capital, not only the cash contributions of the participants, but also everything that has financial value can be used:

• real estate;
• securities;
• equipment.

Call us and we will advise you on all issues regarding effective ways to increase the authorized capital.

Decreasing of LLC authorized capital

A decrease in the authorized capital of an LLC will be required in situations where:

• the composition of the founders left one or more participants;
• the property that was part of the financial institution was removed from the company’s balance sheet.

It will not be possible to reduce the amount of the LLC authorized capital without the consent of creditors. This is due to the fact that for the latter, the size of the authorized capital is a guarantee of security.

Important: creating a new edition and amending the charter is difficult to do without the involvement of specialists. The success of the future activities of the company depends on the correctness of the procedure. To eliminate the risks associated with the execution and registration of documentation, as well as to avoid “paperwork”, contact to “Gestoria Ukraine-Plus” LLC. We will help determine the optimal amount of capital for an LLC and make the necessary changes to the articles of association.

Procedure for changing of the authorized capital

The change of the AC implies:

• making a decision to increase or decrease the statutory fund during the general meeting of all participants;
• making adjustments to the founding documentation;
• registration and inclusion of changes in the USR;
• contributions by participants of funds to the authorized capital of the company (with an increase in the authorized capital);
• entry into force of the decision to reduce the authorized capital (occurs 3 months after state registration).

When ordering services for changing the size of the authorized capital from us, you get:

• professional legal assistance at all stages of the procedure;
• a complete package of documents prepared by our experts;
• assistance in notarization of documentation.

A package of documents for making changes in the size of the authorized capital

To change the size of the authorized capital, prepare documents such as:

• extract or certificate of registration of the company;
• the original of the current version of the Articles of Association with the amendments made;
• a document with information about the future distribution of shares of all participants, as well as the changed size of the authorized capital.

If you need to amend the charter of the LLC, please contact to “Gestoria Ukraine-Plus” LLC. We will recommend the best options for resolving the issue and provide full legal assistance. We have a flexible pricing policy, so being our client is not only beneficial for your business, but also beneficial for you personally.