More about capital
Capital can be defined in different ways – basic, statutory, company, registered, subscribed, etc. All these definitions are synonymous. It’s different when we talk about paid-in capital.
This is because when a capital company is formed, 70% of the paid-up, statutory, etc. may be initially paid. In the case of joint stock companies, 25% of the authorized capital may be paid upon the incorporation of the company.
The capital of limited liability companies represents the value of the partners’ contributions. In Bulgaria, the minimum amount of capital at registration of companies (excluding AD) was set at BGN 2 in 2009.
It can be said that this decision renders the two basic functions of the institution capital, namely, the material basis of the activity of the company, as well as its guarantee function.
2 BGN capital can neither be the basis for starting any business, nor any guarantee from the perspective of creditors.