What is the capital post?

The capital contribution is the benefit of capital in a certain form of the company as a shareholder. The shareholder does not receive more shares in exchange for the contribution, but she or he has more capital in the company as a result of the contribution. In addition, the basic value of the shares increases. For the company, in most cases, the capital contribution is not part of the company's income, although the tax specifics differ according to the area and law.

capital may vary in nature. Money is an obvious example, but capital contributions may also include assets, services or promises that provide services in the future. The shareholder who provides a capital allowance does so to increase his own capital in the company and support the company. For example, if two siblings own a company, one sibling could decide to contribute capital to the fulfillment of cash to complete the project in development. Likewisethe planned project.

Treatment of capital allowances for tax purposes differ. Companies should make sure they are familiar with the tax laws in their areas to file the relevant tax documentation by receiving capital contributions and other forms of support. Accountants can usually provide advice and help with the correct taxation of taxes. In the future, the company may undergo non -compliance with tax authorities with legal sanctions and detailed control.

A company that receives capital contributions can be publicly or privately held. In the case of a publicly held company, shareholders may request liability from the company, including the publication of the financial statements and related documents. This may be done to show how capital posts are used or to determine whether or the OT loaders should respond to the invitations to the contribution of capital. Companies in a private possession unrelevantThe same standards and capital contribution may be more risky in such cases.

When reaching the capital contribution, the parties will sign a contract known as an agreement on capital contributions. This describes the nature of the contribution and determines the conditions that surround it. People should carefully review the contract to make sure it is accurate and if repairs are needed, it should happen before the capital changes and the contract is signed.

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