Share capital (Stammkapital)

In practice

Share capital is not a blocked account. It may and should be used for running the business: for rent, goods and wages. What is prohibited is repayment to the shareholders to the extent that this eats into the share capital. Anyone who pays in only half owes the company the rest; in insolvency, the insolvency administrator collects it. Share capital does not have to be contributed in cash. A vehicle, a machine or software can also serve as a contribution in kind, but a shareholder’s own labour cannot. The value must be documented. Otherwise the person making the contribution is liable for the difference. And anyone who pays in money and shortly afterwards has the company pay for their own items or services may not have made the contribution and then owes it, in whole or in part, a second time.