Share capital increase / reduction
The increase and reduction of share capital are frequent changes in the life of a company, necessary for developing the business, attracting new associates, covering losses, returning contributions or adapting the financial structure to the company's needs.
The procedure for increasing or reducing the share capital involves preparing the documentation and registering the change with the Trade Registry (ONRC). Depending on the company's situation, an increase may be carried out through a contribution in cash, a contribution in kind or by other means provided for by law, and may involve updating the articles of association, subscribing and paying up the contributions and preparing the documents necessary for registration.
Before initiating the procedure, the ownership structure, the value of the share capital, the company's legal and financial situation and the objective pursued by the change must be analysed. The method of increasing or reducing the share capital differs according to the particular features of each company and the operation to be carried out.
Although the procedure is an administrative one, the increase or reduction of the share capital produces important legal effects on the rights and obligations of the associates, the structure of the company and its relationships with third parties. Incomplete or improperly drafted documentation may lead to delays or to a request from the Trade Registry to supplement the file.
A change to the share capital carried out correctly ensures that the company's information is updated in the Trade Registry (ONRC) and allows the activity to be carried out within a legal framework adapted to the development objectives.
Frequently asked questions
How long does a share capital increase or reduction take?
Where all the necessary information and documents are provided, the documentation can be prepared in the shortest possible time, so that the registration formalities are completed without delay. After the application is filed, the time taken to process it depends on the Trade Registry (ONRC) and may vary according to the institution's workload, the particular features of each application and any requests to supplement the documentation.
Must a share capital increase be subscribed and paid up?
Yes. Depending on the method of increasing the share capital and the applicable legal provisions, the contribution to the share capital must be subscribed and paid up under the conditions provided for by law and by the resolution of the associates or shareholders. The procedure differs according to the form of the contribution and the particular features of each company.
In what situations can the share capital be increased or reduced?
The share capital may be increased or reduced in the situations provided for by law and according to the company's needs. An increase may take place, for example, in order to develop the business, attract new associates, make investments, strengthen the financial situation or comply with legal obligations. A reduction of the share capital may occur as part of reorganisation operations or in other situations provided for by law. The procedure and the documentation required differ according to the particular features of each company.
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