What is the composition of share capital?
The share capital of a company is made up of the contributions made by the founder and any potential shareholders at the time of its creation, and possibly during the life of the company. These contributions must be valuated in order to guarantee the substance of the share capital.
In the case of share capital constituted by cash contributions, these are made by depositing a sum of money by one or more shareholders. After the company is formed, this sum is paid into the company’s account, which can then use it for its operations.
Contributions in kind are made by transferring ownership of movable or immovable property (apartment, house, land, business assets, etc.) and/or rights (trademarks, patents, etc.) to the benefit of the company to enable it to fulfill its corporate purpose. These are all contributions other than cash.
Other types of contributions can be made to the company (such as contributions in industry or shareholder current account contributions). However, these contributions do not form part of the company’s share capital.
When forming commercial companies (SARL, SAS, SASU, EURL, SA, SNC), if cash contributions are made, it is necessary to provide proof of the availability and actual payment of all or part of the contribution(s) by producing a share capital deposit certificate from the fund custodian.
In France, the share capital deposit certificate can be issued by a public notary, a bank, or the “Caisse des Dépôts et Consignations”.
The public notary office Chassaint & Cerclé Notaires assists business creators with the necessary steps for depositing their company’s share capital. For more information, click here.
