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When setting up a company, what type of share capital should you choose: fixed or variable?

A capital deposit is essential when setting up a limited liability company, if you wish to register your company. When you set up your company, you and your partners, if any, will have to decide how much capital to contribute.


Rate

100 deducted at the end of the procedure from the amount of paid-up share capital in the account

How does it work?

  1. Open an Anytime pro account by following the "I haven't created my company yet" procedure.
  2. An advisor will contact you to explain the various steps to be taken.
  3. You declare the associates and download the necessary supporting documents
  4. Each partner makes the capital payment to the IBAN we have previously sent you
  5. Legal verifications are carried out by our partners
  6. You will receive a signed certificate of deposit within 72 hours of receipt of the funds.
  7. Armed with your certificate of capital deposit, you can go to the Registrar's Office to obtain your Kbis certificate.

 

Should I choose fixed or variable capital? What are their advantages and disadvantages? Here's a guide to making the right choice for your resources and business.

 

What is social capital?

Share capital is a sum of money paid into a company by its founding partners. The share capital is divided into shares, distributed among the partners and shareholders. It is intended to finance the company's initial investments and ensure its financial health. It also serves as a guarantee of solvency for creditors, suppliers and potential partners. These funds can take the form of cash, in-kind or industrial contributions.

To sum up, share capital has three main functions:

  • Financing your first investments
  • Provide an overview of your company's financial strength
  • Define the shares of each partner

 

Don't hesitate to read our article on the deposit of capital to find out in detail about all the necessary steps and the specialized support Anytime can offer you for your company creation.

 

What is the minimum capital required to set up a company?

In principle, there are no limitations. An exception is SAs, which must have a minimum share capital of €37,000. For all other companies (SAS, SASU, SARL, EURL...), the minimum deposit is €1.

Find out more about the minimum share capital.

Please note that Anytime requires a minimum deposit of €150.

Fixed and variable capital: definition and operation

Fixed capital: the most frequently chosen option

Fixed capital is share capital whose amount does not vary. The only way to change it is to call an Extraordinary General Meeting. So if you wish to change your share capital in the future, you'll need to amend your articles of association.

Two major advantages of fixed capital :

  1. Greater stability for your business
  2. Credit institutions and investors consider companies with fixed capital to be more reliable.

For example, if a company is thinking of asking a bank for a loan in the future to develop its business, choosing a high level of fixed capital may be a good solution. This proves to the lending institution that you have enough to invest and provide working capital for the company from the outset.

 

However, fixed capital has a number of disadvantages

Despite all its advantages, please note that if for any reason you need to modify your share capital in the future, the process is complex. You need to amend your Articles of Association. To do this, a number of formalities are required:

  • Calling an Extraordinary General Meeting
  • Preparing your file to modify your capital
  • Submitting your application to the Centre de Formalités des Entreprises (CFE)
  • Wait for the KBis extract to be modified

It's also a costly process, since you need to take into account the costs of the court clerk's office, as well as the costs of advertising in a legal gazette. Expect to pay around €800.

Let's say you've started your business with a small amount of share capital. The day you're looking for investors, or want to bring in new partners, you'll have to go through a long and costly process. This is where variable capital can be of interest.

 

Variable capital: an attractive alternative for your company

Variable capital offers greater flexibility when it comes to modifying share capital. In fact, you don't need to amend your articles of association thanks to the variable share capital clause.

What are the advantages of variable capital?

1. Change your share capital without any formalities

You can change your share capital without having to call an Extraordinary General Meeting. You can also forget about the filing and publicity formalities involved in changing share capital! No more time-consuming formalities - a real time-saver.

2. Develop your company gradually

As the company evolves, you can increase your share capital as you wish. So when you go looking for investors, all you have to do is increase your share capital.

3. Simplified entry and exit of associates

You can easily accept new partners. The reverse is also possible: without having to modify your articles of association, you can easily let your associates go, whether voluntarily or by force. You can quickly accept new investors, should your business expand rapidly.

Variability of share capital: explanations

When a company opts for variable capital, it can modify the amount of its share capital without any special formalities. However, this notion of variability must be included in the articles of association. We therefore specify :

  • Subscribed share capital
  • The floor clause: minimum share capital
  • The ceiling clause: maximum share capital

If these floors are no longer valid, the company's Articles of Association will have to be amended by calling an Extraordinary General Meeting.

 

Anytime can help you with your capital deposits

Whether you choose fixed or variable capital, our teams can help you with the capital registration process. At this key stage in the creation of your company, our experts will be happy to advise you by e-mail or telephone.

 

Find out more about full and partial payment of share capital

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