Share Capital

Share capital is the nominal capital of a stock corporation (AG) or a partnership limited by shares (KGaA), as specified in the articles of association, divided into shares. According to German stock corporation law, the statutory minimum share capital is 50,000 euros, often associated with the term 'minimum capital AG.' The share capital is registered in the commercial register upon incorporation and, along with the term 'subscribed capital' in the balance sheet, represents a fixed amount that can only be altered through capital measures such as capital increase or reduction. Any change requires a resolution of the general meeting and notarized registration in the commercial register, ensuring transparency for shareholders and creditors. As a liability fund, the share capital serves creditor protection and signals the financial strength of the company. Within the framework of stock corporation law, it plays a central role in the issuance of new shares, subscription rights, and the determination of the nominal value per share. Entrepreneurs, investors, and founders should therefore understand the significance of share capital, the legal requirements for capital raising and preservation, and its impact on company valuation. Additionally, a high share capital often influences the rating by banks and facilitates the acquisition of debt capital.

Share capital is recorded in the commercial register entry of every AG or KGaA and is output as a structured value by the handelsregister.ai API. This allows users to historically track capital increases or reductions, conduct credit analyses, and automatically check regulatory thresholds.