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If you want to start a company, you must make a capital contribution to that company. Your capital contribution will then be a part of the company’s equity.
When you contribute capital to your company, you actually make something available to an existing company or a company that is yet to be established with the aim of becoming a partner and receiving a share. The size of your share will be proportional to the size of your capital contribution. You can increase your share by making another capital contribution to the company.
The amount of capital you contribute to your company depends on the form of your company.
When establishing this form of company, sufficient initial capital is required. The size of this initial capital depends on what is required for company activities.
Before setting up your company, you must submit a financial plan to your notary. This financial plan must demonstrate that your initial capital is sufficient for the normal exercise of your activity for at least two years.
If your company goes bankrupt within three years, and it transpires that your initial capital was not large enough, as the founder, you will be held jointly and severally liable for the obligations of your company.
When starting up a partnership or limited partnership, there is no mandatory minimum contribution. You can therefore freely choose the capital contribution you put into your company. In this case, it is important that your contribution is large enough for the activity of your general partnership or limited partnership.
When setting up a non-profit organisation, international non-profit organisation or foundation, there is no legal minimum contribution, but you will have to contribute something. This can be done by a contribution in cash or in kind.
Your capital contribution can be used as a buffer. You never know if you will suffer setbacks in the first years of founding the company. This is why it is important to ensure your capital contribution is sufficiently large enough to ensure you do not get into trouble.
In addition, your own contribution is an important consideration when it comes to obtaining external financing. The contribution of your own resources says something about the risks you are willing to take as an entrepreneur and about your confidence in the success of your company.
You can look at it this way: if you do not want to invest your own resources into your company when you start it up, why would third parties such as a bank do so?