While the title of the article brings to mind hours of legal analysis, the subject matter is actually quite straightforward and unambiguous. Nevertheless, the issue causes many doubts in those planning to establish a limited liability company.
❓Is the money paid as contributions in cash towards the share capital frozen in the company?
❓ Can the company dispose of the money accumulated in the share capital?
Clients often ask: “Counsellor, we will be paying 100,000.00 zlotys towards the share capital. Is this money not to be used in the current operations of the company?”
Dear Future Partners of a Limited Liability Company,
A limited liability company may use the money accumulated in the share capital for the current operations of the company. It is true that the share capital is intended as a form of protection for potential creditors of the company, nevertheless, in practice, it is used for the development of the company’s activities. Therefore, you can make contributions in cash without worrying that external financing for the company’s development will be necessary!