The share capital is the money that guarantees the protection of the partners of a limited company. Said capital establishes the maximum responsibility that can be attributed to a company when it incurs debts or problems with justice. It is the company, not its members, the one liable to pay for these problems, to the maximum of the share capital. This therefore protects the business partners.

The minimum share capital in Estonia for an OÜ company (limited company) is € 2500. That means that shareholders must contribute a total capital of at least € 2,500. The percentage that each shareholder contributes also defines its percentage of participation (and therefore of ownership) of the company.

The share capital of a company does not have to be paid the exact moment the company is registered. You have up to 10 years to do it. It is in fact usual practice not to pay this share capital immediately. Until the share capital has been paid, however, the company will not be able to distribute dividends, and it will be the partners who respond with their money, since it is assumed that the company does not yet have that share capital to respond with it.

To pay the share capital, the shareholders make a payment to the company’s account from their personal accounts and make an update in the company registry so that this change is recorded. In this article we explain how to do it.

in Running your company

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