Capital contribution and banking process

Information about starting a private limited company electronically and payment of the associated capital contribution

Capital contribution and share capital

When a private limited company or other limited company is set up, its share capital must be determined; this forms the basis of the company's assets. A private limited company (GmbH) must have at least 35,000 Euro in share capital or 10,000 Euro if it is given a start-up privilege. The shareholders each pay a particular capital contribution. When a corporation is started electronically, the capital contribution is paid during the banking process.

However, the share capital and capital contributions do not have to be paid in full on start-up. It is both legal, and common practice, to contribute half of the share capital to begin with, in other words 17,500 Euro, or 5,000 Euro if using the start-up privilege.

The banking process for e-start-up

The banking process is essential for electronic start-up of a single-person private limited company. The bank sends the following documents directly to the companies register as part of this process:

• Bank confirmation
  The person starting the company must pay the capital contribution to a bank. The bank sends the companies register confirmation that the capital contribution has been paid.
• Proof of identity and specimen signature
  The bank checks the person's identity with identity documents and gets him or her to produce a specimen signature. These documents are scanned and also sent to the companies register.