The authorized capital is understood as the amount of funds initially contributed by the owners of the organization in order to ensure its statutory activities. The authorized capital can be contributed both in cash and in the form of property or securities, which will be accounted for in cash.
Instructions
Step 1
The purpose of forming the authorized capital is to provide a starting financial package for starting a business, as well as providing credit guarantees throughout the entire operation of the organization. It is in connection with its guarantee function that the authorized capital cannot be withdrawn in an arbitrary manner. The amount of the authorized capital must always be owned by the organization and confirm its credit reliability and solvency.
Step 2
In cases where it becomes necessary to withdraw part of the authorized capital from the organization's circulation, the first and mandatory step is to reduce the authorized capital. The procedure for reducing the authorized capital is spelled out by law, depending on the form of ownership of the organization.
Step 3
So, for an LLC, a decrease in the authorized capital can be carried out by reducing the value of the participants' shares, or by redeeming a part of the authorized capital shares owned by the LLC, or by liquidating them. This option is provided for by the Charter of the joint-stock company. The reduction of the authorized capital should be carried out in a strict procedural order stipulated in the legislation.
Step 4
The procedure begins with the adoption of a decision, for which it is necessary to hold a meeting of founders or shareholders. Within three days from the date of the official decision to reduce the authorized capital, the tax authorities should be informed about this fact, as well as a new edition of the constituent documentation should be developed, taking into account the adopted changes.
Step 5
The next step should be to notify all creditors of the organization about the introduced changes. Only after this step is the registration of changes carried out, making an entry in the USR of legal entities and issuing a certificate. From that moment on, the authorized capital is officially reduced and the released funds can be withdrawn from the organization.
