How to contribute property as authorized capital

The law allows the formation of the authorized capital of a limited liability company not only from cash, but also from property. This method of participation does not require additional financial investments from the founders; therefore, it is widely used in business practice.

Instruction manual

1

Organize a general meeting of participants in the limited liability company and determine what property will be contributed to the authorized capital. Define the shares of each of the founders as a percentage or as a fraction.

2

Evaluate the property in monetary terms if its value is not more than 20, 000 rubles. If this amount is exceeded, order an independent assessment. Please note that the costs of its implementation can also act as a contribution to the authorized capital, if this is stipulated in the charter of the company.

3

Please note that a monetary valuation of the property must be carried out before submitting an application for registration of a limited liability company to the tax authority. The contribution of property to the authorized capital without a preliminary assessment entails the invalidity of the charter.

4

State the decisions made in the minutes of the general meeting of participants, fix them with signatures. Reflect in the charter of the enterprise and the memorandum of association the method of formation of the authorized capital by depositing property.

5

Draw up an act of acceptance of each of the objects proposed by the founders as a contribution from the participant to the company. This document will serve as a confirmation of contributions to the authorized capital in the form of property.

6

A limited liability company must documentarily confirm the value of the property received, therefore, ask the founders for invoices, bills of lading, commodity checks and other documents containing information about the actual costs incurred to acquire the property or its residual book value. On their basis, capitalize the property contributions of participants to the accounts of investments in non-current assets, followed by transfer to fixed assets or inventories.

7

Keep in mind that in case of payment of a contribution to the charter capital of a limited liability company by property, participants for 3 years bear subsidiary liability for the obligations of the enterprise in the amount of overstatement of the value of the property. The same rules apply to an independent appraiser. Therefore, when assessing, use the real market value of the property.

registered capital in the form of property