Change of Authorized Capital in Lviv

Among the changes your company may require during its development is the adjustment of authorized capital. This refers to either its reduction or increase.

A reduction of authorized capital is necessary if the declared capital has not been formed by the owners within one year. In such cases, information about the reduction must be published in printed media. We hope that you manage your business properly and will not need to register a reduction of authorized capital.

An increase of authorized capital allows a company to expand its working capital, since funds contributed to the authorized capital are not subject to taxation. Please note: the capital can only be increased if it has been fully formed, i.e., 100%. The decision to change the authorized capital is made by the founders.

Like any other corporate change, altering the authorized capital of an enterprise requires registration. In other words, you need to amend the statutory documents. Whether you are increasing or reducing the capital, registration is mandatory. To carry out the procedure, you must prepare a package of documents, pay the required state fees, and register the changes with the state registration authorities. As with other bureaucratic procedures, it is best to entrust the change of authorized capital to professionals who will handle the task quickly and efficiently.

Practical aspects of the procedure

The key point in managing the authorized capital of a legal entity is that all such decisions are made at the general meeting of participants (Part 4, Art. 145 of the Civil Code of Ukraine). Participants have an inalienable right to both increase and decrease the company’s fund, acting strictly within the law (Part 2, Art. 87 of the Commercial Code of Ukraine). It should be noted that according to the current version of the Civil Code, the authorized capital of a legal entity is not limited by law in terms of minimum or maximum size — it is determined by the general meeting.

Articles 59 and 60 of the Law of Ukraine "On Business Companies" stipulate that before changing the authorized capital, a quorum of at least 60% of the total number of participants must be present at the meeting, and the decision must be adopted by a simple majority of votes (more than 50%).

Part 2, Art. 7 of the Law of Ukraine "On Business Companies" requires filing with the Unified State Register within 3 days of the decision to register the change in authorized capital.

The registrar must be provided with the documents specified in Art. 17 of the Law of Ukraine "On State Registration":

• application;

• original or notarized copy of the minutes of the general meeting;

• original of the current charter and the new version of the charter;

• receipt for payment of the administrative fee.

Registration of changes in authorized capital is deemed completed once the registrar enters the data into the Unified State Register.

In Lviv, registration of changes in authorized capital can be carried out quickly — literally within a few days — if handled by professionals. Unfortunately, attempts to handle the procedure independently often result in delays in registration, which may negatively affect business operations. Do not economize on details — focus on your business!

Experienced specialists of Olson will register the change of authorized capital of your enterprise in Lviv promptly and professionally.