What is invested in Capital?
Invested in capital is money that was paid into the corporation for shares. Therefore, the shares issued to date when the company applies to list onto the Frankfurt stock exchange must have at least 250,000 euro’s in value with the funds having been made in cash-consideration. (Real Money subscriptions) What is it not? – Debt – Asset Value – Invested in Capital into a past asset – Value in Shares (Asset- but I separate this because people often ask if shares count, they don’t) – Revenue How to reflect the capital-in: – In an opening balance sheet for the company – In the companies financials – At the share registrar as paid for shares – With a Lawyers letter if the funds are in escrow on behalf of the company at that exact time – An auditors letter who has reviewed the financials and the banking information and can state the capital-in to be 250,000 euro The required documentation at the time of listing is either the Lawyers letter or the Auditors Letter. However, often registrars will
