What is share capital?

Share capital consists of two types of contributions:

• Cash contributions: sums of money paid by partners. These are deposited into a blocked account (bank, notary) until registration, then released.
• In-kind contributions: non-cash assets—equipment, vehicles, business funds, patents, property. These are valued, and above certain thresholds, a contributions auditor verifies their value.

There are also contributions in kind (expertise, labour): these grant shares but do not form part of the share capital, as they cannot be seized by creditors.

In return for their contributions, partners receive shares (SARL, EURL) or stock (SAS, SASU, SA), which determine their weight in the company.

For the most common business types—SAS, SASU, SARL, EURL—the law sets no minimum capital: it is legally possible to form the company with €1. The SA is an exception, with a minimum of €37,000.

However, a €1 capital is legally valid but commercially risky. Capital is the first visible guarantee for banks, suppliers and partners. A nominal capital can:

• Make it harder to obtain a loan or overdraft
• Weaken the company at the first cash flow hiccup
• Signal a lack of commitment from the founders

Hence the importance of sizing the capital based on actual startup needs rather than aiming for the symbolic minimum.

Release refers to the actual payment of contributions. For cash contributions, the law allows paying only part at formation (at least half for SAS, one-fifth for SARL), with the balance due within 5 years. In-kind contributions, however, must be fully released at formation.

Beyond funding the startup, capital plays a collateral role: it is part of the company’s assets on which creditors can be repaid. It also determines power distribution via the shares or stock held.

Properly sizing and releasing capital is a structuring decision at formation. This is typically the kind of trade-off that guidance can clarify, linking the capital amount to real needs and the desired credibility.