Requirement of share capital in limited companies will be lowered to 50 000 kronor

Content

The Government has decided to lower the requirement of the size of the share capital in private limited companies from 100 000 kronor to a minimum of 50 000 kronor. The decision comes into force on 1 April 2010.

When you want to start a new limited company

The provisions imply that a decision to form a private limited company with a share capital of 50 000 kronor can be made at the earliest on 1 April 2010. Therefore, the memorandum of association cannot be dated earlier than this date. Naturally, it is also permitted to have a larger share capital.

When you want to reduce the share capital

If you already have a limited company with a share capital of 100 000 kronor you may reduce it to minimum 50 000 kronor. You may do so no earlier than 1 April 2010.

If you want to reduce the share capital you need to observe the general rules regarding a reduction of the share capital. There is no simplified way of doing it.

Read more about how to reduce the share capital on the page Reduction of the share capital.

Published February 23, 2010