Starting on February 1, 2023, the minimum share capital requirement for new companies has changed to at least 1 cent (up to a maximum of €50,000 without proof of payment) by law. This is a decrease from the previous minimum requirement of €2,500.
For companies established through Xolo, the share capital will automatically be registered as €1. You may choose higher share capital if your company has higher financing needs. This means that private limited companies can no longer be established without making a share capital contribution. Upon establishment, the €1 share capital must be paid directly from a personal bank account to the company's bank account.
For companies established before February 1, 2023, the option to reduce share capital remains the same after February 1st, if desired. However, if the company was established without making a share capital contribution prior to February 1, 2023, there is no requirement to change. If desired, the share capital can be reduced starting February 1st, but the initial share capital (€2,500) must be paid and registered first.
You should also keep in mind that even if you reduce the share capital below €2,500, then for the protection of creditors, a clause was included that the temporary bankruptcy administrator has the right to demand reimbursement of fees and expenses from the shareholders of the private company in the amount of up to €2,500 even if the share capital of the private company is less than €2,500.
Please note that registering the share capital (for companies registered prior to February 1st) is still a requirement for dividend payment. Xolo offers assistance with this process for an additional fee of €49 + VAT + €25 state fee. Our full pricing information can be found here.