The authorized capital is Definition, formation, minimum size

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In accordance with the legislation of the Russian Federation, enterprises - private, state or municipal, must have authorized funds. What is their purpose? How are the respective funds formed, adjusted and used?

What is the essence of the term "statutory fund"?

To begin with, let's define the essence of the term in question. The concept of "authorized fund" has several meanings.

In a broad sense, this term can be considered as corresponding to the property of any enterprise (private, state), which is represented in monetary terms, tangible and intangible assets. In a number of contexts, it can be synonymous with the concept of "authorized capital", which corresponds to the resources of a private enterprise.

In turn, in the narrow sense, the statutory fund is property owned only by state or municipal business entities.

Thus, let us study the term in question in the two most common interpretations:

- as corresponding to the property of private firms (acting as a synonym for the concept"authorized capital");

- as a resource used in the economic activities of state and municipal enterprises.

Authorized capital of state and municipal economic entities

Let's study the specifics of a narrower interpretation of the term in question. Its essence is determined by the legislation of the Russian Federation on the activities of state and municipal enterprises.

In accordance with these provisions, the authorized capital is the minimum amount of ownership of companies owned by the state or local authorities, which is used to satisfy the interests of creditors and other authorized persons. This resource can be formed through monetary transfers, the inclusion of valuable things, various property rights in the property of the enterprise.

The size of the authorized capital of state and municipal organizations

The size of the authorized capital of a state or municipal economic entity is determined by law and may change. As a rule, it corresponds to the values expressed in thousands of minimum wages. Usually, the requirements for the size of the authorized capital for state-owned enterprises are higher than for municipal ones.

The legislation establishes a special procedure for the formation of the resource in question - including in terms of its minimum value. Let's study it in more detail.

How is the authorized capital formed?

The formation of the resource in question is carried out in the order determined bylegislation. In accordance with the provisions of the law governing these procedures, the authorized capital of the organization must be formed by the owner of the economic entity within 3 months from the moment the state registration of the company is completed.

The resource in question is considered formed as soon as the funds in the minimum amount or in the amount that exceeds the criterion established by law are credited to the current account of a state or municipal enterprise. In some cases, the formation of the statutory fund is recognized as completed if the necessary amount of resources is transferred to the economic management of the entity.

The legislation of the Russian Federation establishes the procedure for increasing the resource in question. Let's study it.

Procedure for increasing the authorized capital

The statutory fund is a resource that can be increased in the manner prescribed by law. This procedure can be carried out, first of all, only upon the formation of the fund in full.

An increase in the corresponding resource is possible at the expense of property transferred by the founder of a state or municipal economic entity, as well as at the expense of proceeds derived from the business of the company, if it is not prohibited by law.

The decision to increase the size of the authorized capital is made taking into account the indicators reflected in the financial statements of an economic entity. The value of the resource under consideration after adjustment should not exceed the net asset valuebusiness entity. Simultaneously with the decision, in accordance with which the authorized capital of the company is increased, the necessary changes are made to the charter of the organization.

Those documents that are needed to register adjustments in the constituent documents, as well as those sources that confirm the change in the capital of the enterprise, are provided to the Federal Tax Service. If any sources are missing, the Federal Tax Service may refuse to register changes in the structure of the organization's authorized capital.

This is the specificity of increasing the resource in question. But the statutory fund is property, which can also be reduced if necessary. Let's study how the corresponding procedure is carried out, in more detail.

The procedure for reducing the authorized capital

Reducing the value of the authorized capital of the company is also implemented with the direct participation of the founder of the business entity. This procedure can be carried out at the request of the owner of a municipal or state enterprise or by virtue of law. The statutory fund of an economic entity cannot be reduced if, upon the fact of a decrease in its cost indicators, it will be lower than the minimum value of this resource, determined by law.

Reduction of the authorized capital: requirements for economic indicators

If at the end of the financial year the value of the net assets of the enterprise is less than its authorized capital, then the owner of the corresponding economic entity will have to reduce the value of this fund to a value that will not exceed the valueassets. Changes in the value of the resource in question must be registered with the Federal Tax Service in the manner prescribed by law.

If at the end of the financial year the value of net assets is less than the minimum authorized capital, then if this ratio of economic indicators persists for 3 months, the owner of the enterprise will have to liquidate or reorganize the company. The value of net assets in this case is determined based on the information recorded in the accounting records.

If an enterprise does not ensure that the authorized capital is brought to the required value, or does not initiate liquidation or reorganization of the company in cases provided for by law, then the creditors of the economic entity will have the right to request from it the early fulfillment of existing obligations or compensation for the losses incurred.

This is the essence, the specifics of the formation and adjustment of the size of the authorized capital in state-owned enterprises and those established by municipal authorities. Let us now consider the essence of the term in question in the context of the work of particular structures. For example, business companies.

Authorized fund, or capital in business entities

The statutory fund, or the capital of an organization, is one of the key sources of property of a private business entity. This resource is formed mainly due to the contributions of the owners - directly during the establishment or in the process of business development.

The authorized capital of the organization is the property of the company, which is used primarily forin order to satisfy the interests of the organization's creditors, as is the case with state-owned enterprises. Its value is reflected in the constituent documents of an economic entity.

Minimum share capital

The minimum size of the corresponding resource is ten thousand rubles for an LLC. For joint-stock companies it is 100 times the minimum wage, for public joint-stock companies - 10 times more. The largest value of the minimum authorized capital is set for banks, it is 300 million rubles.

The relevant property of an economic entity must be formed within a certain time frame. So, LLC participants, for example, must make contributions to the authorized capital of the LLC within 4 months from the date of its registration with the Federal Tax Service.

Composition of authorized capital in business entities

The resource in question can be represented by cash, various shares, material values, or, for example, property rights. When LLC participants contribute certain types of property to the authorized capital, it is necessary to confirm the value of the invested resources through an independent assessment. The type of property in question is not subject to taxation and is not considered an expense of a business entity.

Authorized capital and participation of owners in business

If there are several founders of the company, then the share in the authorized capital of each of them must be determined. The corresponding property is brought to the cash desk of the enterprise or to its current account. If one of the founders of the company leaves its composition, thenhis share in the authorized capital must be reimbursed. For this, the legislation establishes a certain period - 6 months after the end of the financial year.

At the same time, the right of the founders of firms, in particular, when it comes to LLC, to exit from business should be enshrined in constituent sources - first of all, in the charter of the organization. If this agreement is not concluded between the owners, then the procedure for the founder to leave the company cannot be carried out at his request.

Functions of the authorized capital in a private organization

The authorized capital of a private firm is characterized by special functions. Such as, for example:

- distribution of shares in business ownership between the founders;

- ensuring the protection of the interests of creditors: in the event that the enterprise that took the loan becomes insolvent, the authorized persons will be able to compensate for losses at the expense of the funds that make up the authorized capital of the enterprise.

The strategy of investing in the appropriate resource of the company is the most important component of the work of enterprise managers. Corporate governance is a key area of activity for the heads of an economic entity; it involves regular consideration of issues related to investing in authorized capital.

This is due to the fact that the corresponding resource performs another important function - ensuring the investment attractiveness of the company. The growing authorized capital of the enterprise is an indicatorcompetitiveness, an indicator of the successful development of the company.

Accounting for share capital

The corporate governance of a firm also includes the organization of accounting. In particular - registration of business transactions with authorized capital. This or that contribution to the statutory fund, the redistribution of shares of this resource are subject to reflection in accounting. For this, special accounts are used. In accordance with the law, in this case, account 80 should be used. When registering business transactions as part of settlements with founders, account 75 is used.

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So, we have considered the essence of the concept of "authorized fund". It can be seen in two main contexts.

Firstly, the corresponding fund in the narrow sense can denote the property of only a state and municipal economic entity. The procedure for its formation, adjustment, appointment, minimum size are determined by separate norms of the legislation governing the activities of these enterprises.

Secondly, the term "statutory fund" may correspond to the property of a private enterprise. In this case, it can be considered as a synonym for the concept of "authorized capital".

The requirements for the size and features of property management of a state or municipal and private enterprise differ significantly. So, for example, the registration of an LLC requires the payment of an authorized capital of ten thousand rubles. The establishment of a state or municipal enterprise is much higher. The highest minimum authorized capital is set for banks.

The main purpose of the resource in question, in general, is the same when comparing the property of private and state or municipal economic entities: it is to protect the interests of creditors and other authorized persons as a result of establishing legal relations with the company. In the event that the company needs to urgently repay debts on loans and fulfill other obligations, then, first of all, its authorized capital will be used as a source of financing.