Cash contribution
Under cash refers to cash deposits that a company in the form of legal tender (cash or bank transfer) are provided. The opposite is the contribution in kind .
General
As societies as legal entities own legal personality representing their need to associate the initial capital or capital increases from its privacy transferred to the company sphere. As a rule, this is done in the form of a cash deposit through cash payment. The (to be drawn up) articles of association provide for both the type and the amount of the capital share to be provided by each partner. If nothing is regulated about the type of capital contribution, a cash contribution can be assumed; because contributions in kind or acquisitions in kind are expressly specified in the articles of association and are therefore the exception. The capital share is provided by the shareholder as a cash contribution by making it available to the company in cash.
Legal issues
The purpose of cash contributions is to provide the company with liquid funds and to strengthen the liability pool. In the case of corporations , proof of payment of the cash contribution is even a prerequisite for entry in the commercial register . The registration of the AG in the commercial register is made dependent on the fact that the amount requested for each share has been properly paid in ( Section 54 Paragraph 3 AktG), “unless contributions in kind have been agreed”. The law usually assumes the cash contribution. In the case of the GmbH , too , registration may only take place if at least 25% of the share capital has been paid in ( Section 7 (2) GmbHG). The capital share is to be paid in such a way that it is at the final free disposal of the management board of the AG ( Section 36 (2) AktG) and the management of the GmbH ( Section 8 (2) GmbHG). The deposit is the Registry Court by account credit to prove. In the case of partnerships, however, there are no such strict requirements. Registration for the commercial register does not require any proof that the contribution has been made for OHG ( Section 107 (1) HGB, Section 123 (1) HGB) and KG ( Section 162 HGB). Even the limited partner does not have to make his contribution, but is then directly liable ; with payment of his limited partner contribution he is released from liability ( § 172 Abs. 1 HGB). A partnership does not provide a sales tax service to a partner in exchange for a cash contribution due to a lack of economic activity within the meaning of Section 1 (1) No. 1 UStG. Cash contributions are tax-neutral.
While cash contributions are not immediately due in full ( outstanding capital ), contributions in kind must be made immediately.
species
Cash deposit is any deposit made in legal tender or cashless payment permitted as cash. The cash deposit in the Company's cashier is the only direct cash form. Permitted non-cash forms of payment are bank transfers or money surrogates such as check or bill of exchange payment as an account credit with a bank in favor of the company ( Section 54 (3) AktG).
International
Cash deposits are also the usual form of company capital internationally. In Switzerland, Art. 774 (2) OR requires that 50% of the nominal capital must be paid prior to registration, regardless of whether contributions in cash or in kind. A Payment in kind, according to Art. 777c 2 OR para. Possible. French law defines cash contributions ("l'apport de numéraire") as the amount of money that is transferred to the company when it is founded or as part of a capital increase as consideration for shareholder rights. Cash deposits are to be deposited in a blocked account with a bank or a notary. In English law there is a broad definition of cash contribution.
