Minimum share capital of a GmbH is €25,000
The minimum share capital of a GmbH is €25,000. On formation, each share-
holder of a GmbH receives a single share in the amount of the share capital he
holds; shares issued may be split later as necessary to effect a whole or partial
transfer of a holding.
A GmbH does not issue share certificates and its shares
are not freely transferable. Quite apart from any restrictions that may be laid
down in the articles, existing shareholders have the right of first refusal before a
shareholder may transfer his interest to an outside party. The admission of a
new shareholder must also be approved by the existing shareholders.
A special rule in the GmbH Act provides for registration of an “incorporated
business” (Unternehmergesellschaft) with an issued, but fully paid up, capital
of less than €25,000. Such a business must disclose its status in its firm name
and must take one quarter of its annual net profit to a legal reserve. On increase
of its capital to the legal minimum, it is free of the reserve obligation and may
(but need not) change its name to that of a GmbH.
EU Forecast
euf:ba18e:59/nws-01