Why is it necessary and is it possible to spend the authorized capital of an LLC? Authorized capital of the organization: size, accounting, analysis and audit.

Represents the amount of initially invested assets (most often cash) needed to start the business. Its size is not arbitrary, but is established in accordance with certain norms of jurisdiction. Thanks to the authorized capital, it becomes possible to form the funds that are needed for the first steps in commercial activities.

The value of the authorized capital

Of course, it is important and performs several functions at once. Here are the main ones:

• it provides creditor protection. This implies that this capital gives investors an excellent guarantee that they will receive some compensation even if the enterprise does not succeed and is completely ruined;
• impact on market positioning. It is by the authorized capital that experienced people judge how successful the company is and what awaits it in the future (although this indicator is not very informative);
• for a developing company, it is the initial capital. No initial capital commercial activity impossible, since it is impossible to do without fixed costs and expenses;
• used as a means to limit entry of companies into the market. In some cases, activities will not be possible if the authorized capital of the company does not meet the requirements. All this is justified by the fact that serious business requires great responsibility.

Minimum authorized capital

Such capital must be calculated in accordance with all requirements that are established by the regulatory authorities of the jurisdiction. To date, almost all countries have established a minimum amount of funds, without which it is impossible to open any company. To register a company, you will need to go through procedures that are associated with the collection and provision of documents and writing applications and so on.

It is possible to contribute not only money, but also material assets, property rights, and even securities to the authorized capital - this is quite acceptable.

Calculations in this case occur using the minimum wage, although sometimes the amount in money is also indicated. For CJSC - this is 100 minimum wages, OJSC - 1000 minimum wages, the minimum authorized capital of LLC must be more than 100 minimum wages, municipal unitary enterprises - this is 1000 minimum wages, and state enterprises must have an authorized capital of at least 5000 minimum wages. These data refer only to Russia.

Foundations, ANOs and other non-profit organizations can legally be created without it.

Increase the authorized capital

The size of the authorized capital of CJSC, LLC and other commercial organizations may be increased over time. Without this, the growth of the company is impossible. This is only possible if the previous share capital has been contributed. The decision to increase it is made directly at the general meeting of the members of the company or its shareholders.

The reasons that lead to its increase:

• the need to finance the growth of the company. In this case, even funding from third parties is possible;
• the need to provide employees with securities;
• the reason for its increase may be a merger with some other company.

Undoubtedly, a developing company must constantly increase its authorized capital, and information about it, as a rule, should be available to the public.

Decrease in authorized capital

There are cases when companies reduce their authorized capital. The goals here may be different. Here are the most basic ones:

• to increase the value of the shares. The authorized capital is growing, and with it the number of shares is growing - this leads to their partial depreciation. In other words, its reduction does not allow the shares of shareholders to be diluted.
• to optimize the management of authorized capital.

Businesses need funds to run their business. They give you the opportunity to get started. Their size can be different, depending on the norms of the law. It is important to know how to properly form the authorized capital.

Important Aspects

Capital - the monetary value of the property of enterprises. It is owned and borrowed. The capital of organizations is considered from several positions. Distinguish between real and money capital.

The first exists in the form of production resources, the second - in the form of finance. It is used to acquire resources. Depending on the source of formation, capital can be owned and borrowed.

Any changes relating to the Criminal Code should occur only in cases that are permitted by law or constituent documentation.

During the formation of capital may be formed additional source funds - share premium. Legislative bodies put forward specific requirements for capital. Equally important is the question of the minimum size.

The authorized capital may consist not only of finance, but also of securities, material values, property rights. The calculation is carried out using minimum size payment labor activity(SMIC).

Each type of organization has its own:

For funds and non-profit organizations authorized capital is not required. The amount of capital can increase and decrease. The increase contributes to the growth of the organization. Perhaps this is the case if the previous capital was deposited earlier.

A meeting of the founding persons of the enterprise is convened, and a decision is made to increase the capital. The reasons for the increase are:

• the organization needs funding for its further growth;
• employees need to provide securities;
• merger with another organization.

If the company wants to develop, the capital must be constantly increased. It must be open to the public.
It happens that the company reduces its state.

The reasons may be:

Reduction of capital may occur on a voluntary basis or as required by law. The authorized capital includes a certain number of shares different kind that have a fixed denomination.

Its formation, change is regulated by law. It is formed on the basis of contributions from participants. Comprises:

The share of the authorized capital may be sold to other participants. The seller must notify the other participants about this one month in advance. shares must be certified by a notary.

To register a sale, you will need the following documents:

• photocopies of the constituent documentation of the enterprise;
• registration number;
• extract from the register of legal entities;
• charter;
• participant data.

Account 80 is intended for the authorized capital - a generalization of data on its condition and movement. Capital is accounted for. If the capital changes, it must be re-registered.

Basic definitions

What is its role

The authorized capital is important for any type of organization, it performs many functions. Main:

Thanks to the authorized capital, the company will be financially stable. Acts as collateral.

Current regulatory framework

According to, the authorized capital must be paid before the registration of the organization.

It states that if at the end of the reporting year the net asset value is less than authorized capital, then the organization is obliged to declare this and register the fact of the decrease.

On the basis of the following, an organization is recognized as a company in which the authorized capital is divided into shares. According to , the UK consists of the value of contributions by the shareholder of the enterprise.

Emerging nuances

When registering an organization, the formation of the authorized capital is mandatory. You can deposit both money and property. Financially, it's clear. What about property? The material share must have a financial value.

Video: the essence of the authorized capital

It is determined by all the founders at the meeting. If this is not possible, it is allowed to establish the value by independent appraisers.

When a new shareholder appears in the organization, the capital can increase at his expense. He must issue an application addressed to the director, in which he indicates the amount of the contribution, the term for its payment and the share in the capital.

After that, a meeting is called at which the following is decided:

• what will be the size and nominal value of the share of the new shareholder;
• how the share of each participant will change;
• registration of a new one in connection with the increase in the Criminal Code.

When forming capital, it is important to consider the following:

The capital may be increased by additional contributions, additional capital or part of it.

During the creation of the authorized capital, it is necessary to take into account some features. Its structure and size must meet a number of conditions.

Among them are the following:

• manufacturing industry;
• the size of the organization;
• cooperative level of the enterprise;
• service level.

The minimum amount of capital is regulated by law, the maximum is not, it can be anything. Changes are only possible by common decision shareholders of the organization.

Change options:

• a part of the shares is canceled or redeemed with the par value preserved;
• the par value of shares decreases;
• the amount of capital is preserved by combining shares;
• additional shares are issued.

Step-by-step instruction for capital increase:

1. At the meeting, a decision is made to change the capital.
2. A new version of the charter is being prepared.
3. Paid to the state, the amount is 800 rubles.
4. Documents are being prepared that confirm the payment of an additional fee or the arrival of a new participant.
5. Within a month after the change in the charter, documents are submitted to the tax service for registering an increase in capital.

What the bank needs to know

To ensure its activities, the bank must also have its own capital. It is formed on the basis of each participant.

The MC of banks performs many functions, including:

• the role of the start-up funds required for primary costs;
• acts as a regulator of activities;
• building customer confidence;
• acts as a shock absorber, which repays the damage from expenses.

The authorized capital of the bank includes:

• par value of shares;
• the amount of investments by the state or as a private share;
• rights to use natural resources.

Consists of fixed capital and additional. The main one is the one that is paid and registered. When registering a bank, it is necessary to have a minimum capital, its size is 180 million rubles.

Contributions to the UK can be made both in rubles and in foreign currency. The authorized capital can be formed only with own funds, it cannot be used loan funds or budget.

The share of each of the shareholders should not exceed 35%. The legislation puts forward many requirements for the capital of banks.

Features for the enterprise

The authorized capital of enterprises must include a specified number of shares various types with a certain value. The share of each participant is expressed in ruble equivalent or as a percentage of the total capital.

At the time of registration of the organization, capital must be formed for half of the total amount. The remaining funds are paid during the year after the opening of the enterprise. If one of the founders does not pay his share on time, he will face a fine.

Thus, the authorized capital necessary condition when creating a new business. To start an activity, the capital must be minimal, its size is established by law.

In the course of activity, it can either increase or decrease. These changes must be decided at a meeting of shareholders of the enterprise.

The liquidation process of an LLC is very complicated and affects many aspects of the financial condition of the organization. One of these is the return of the authorized capital. Can the founder receive his share in the liquidation of the company in 2019? At the end of the activity, the organization is obliged to fulfill an important liquidation ...

The activity of any organization begins with the formation of the authorized capital. This requires the display of the amount in the constituent documentation and accounting. What transactions show operations on the authorized capital? The beginning of the enterprise's activity is provided with start-up capital. During the registration process...

The payment of a share in the authorized capital can be carried out different ways. But in any case, the fact of payment must be documented. What documents are used for this? What does a confirmation certificate look like? The payment by a company participant of the prescribed share in the authorized capital must be documented ...

The issue of selling a share of the authorized capital became relevant after some changes in the legislation. Often difficulties arise precisely because of ignorance of the laws. How to formalize the sale of a share of the authorized capital in 2019? When an organization is formed, the authorized capital is formed. Its shares are distributed between ...

You can get answers to any questions regarding the registration of an LLC and an individual entrepreneur using the service free consultation on business registration:

The authorized capital is cash or property, when registering an LLC. In accordance with paragraph 1 of Art. 14 of Federal Law No. 14-FZ "On LLC", the authorized capital of an LLC determines the minimum amount of its property that guarantees the interests of its creditors, and is made up of the nominal value.

Minimum authorized capital

The minimum authorized capital of an LLC is 10,000 rubles, and, since September 2014, it can only be paid in cash (clause 2, article 66.2 of the Civil Code of the Russian Federation). The contribution of the authorized capital by property is possible only in addition to this minimum amount.

• 100,000,000 rubles - for the organizer of gambling in a bookmaker's office or sweepstakes (clause 9, article 6 of the Federal Law No. 244-FZ);
• 300,000,000 rubles - for banks, 90,000,000 and 18,000,000 rubles - for non-banking organizations, depending on the type of license (Article 11 of the Federal Law No. 395-1);
• 60,000,000 rubles - for an insurer providing exclusively medical insurance, 120,000,000 - for other insurers, and at the same time it depends on the coefficient by which the specified amount is multiplied (clause 3, article 25 of the Federal Law No. 4015-1);
• 80,000,000 rubles - for vodka producers (clause 2.2. Article 11 of the Federal Law No. 171-FZ).
• other restrictions (by local authorities for certain types activities, additional requirements for the minimum amount of the authorized capital may be established, for example, in accordance with the Law of the Volgograd Region of June 27, 2006 N 1248-OD "On State Regulation retail alcohol products in the territory of the Volgograd region" the authorized capital of the company for the retail sale of alcoholic products must be at least 50,000 rubles (except for public catering organizations)).

The amount of the authorized capital of an LLC cannot be less than the minimum amount determined by law. Accordingly, the authorized capital of the company must always correspond to the minimum, and not only at the time of filing documents for registration of the LLC. If the authorized capital of the LLC does not correspond to the minimum, then it must be up to the appropriate amount.

In accordance with paragraph 4 of Art. 90 of the Civil Code of the Russian Federation, if at the end of the second or each subsequent financial year the value of net assets turns out to be less than the authorized capital of the LLC, then the company must. If the value of net assets remains less than the size of the authorized capital, the LLC is subject to liquidation.

Where to contribute authorized capital when creating an LLC?

Until May 2014, the authorized capital of the organization by 50% had to be paid even before state registration. For this, a special savings bank account was opened.

Now, the terms for contributing the authorized capital are no later than four months after the registration of the LLC, and the money from the founder is deposited into an account opened after the company was founded. The contributed authorized capital can be spent on the needs of the organization: office rent, salary payment, purchase of goods, etc.

Contribution to the authorized capital by property

The authorized capital of the property is contributed as follows:

1. An independent appraiser evaluates the property contribution.
2. The founders unanimously approve the monetary value of the property contribution to the charter capital of the LLC.
3. Information on the assessment of the property contribution to the authorized capital is reflected in the decision or in the minutes of the general meeting, as well as in the founding agreement (if there are two or more founders).
4. After the registration of the company, the founders transfer their property contributions to the balance of the LLC according to the act of acceptance and transfer.

The authorized capital is a set of funds that the founders of the enterprise invested in it at its foundation, according to this principle, partnerships and LLCs are created. The authorized capital is necessary to ensure the initial operation of the enterprise, but mainly in order to ensure the return of funds to the creditors of the organization. For this reason, with the development of the enterprise, its authorized capital does not disappear, but remains, and sometimes an increase awaits it.

Its purpose remains the same - to insure creditors and counterparties of the company, to whom the latter has obligations. Therefore, the authorized capital, unlike other types of capital inherent in the company, has a fixed amount, which is determined upon the basis legal entity. In the future, the enterprise is obliged to maintain the funds of the authorized capital at the level specified in the statutory documents.

It is worth noting that often the size of the authorized capital is not enough to provide for all persons - both individuals and legal entities - to whom the company had obligations at the time of closing. The size of the authorized capital with the beginning of the functioning of the company is determined as the difference between the property of a legal entity and its obligations.

Types of capital

Capital is a conditional concept in a sense, therefore the same funds on the balance sheet of a company usually refer to several types of capital at once. Thus, real estate owned by the company can be considered as authorized capital, as well as own, and tangible capital. In order to better understand what the authorized capital is and what functions it performs, you need to do short review types of capital.

First of all, it is distinguished depending on the form in which it is, so they distinguish:

• real;
• monetary.

The difference between them is that the former is contained in material objects, as a rule, means of production, which bring profit. The second is represented by cash, usually in the company's turnover. This money is used both for the functioning of the organization and for the acquisition of means of production, that is, they can be converted into tangible capital, and vice versa, it is converted into monetary terms, usually this happens when selling unnecessary means of production or products that have been stored. Usually the funds are kept in the bank where the company has an account. The organization keeps money in the account, as the bank multiplies them, even if the enterprise itself cannot use them effectively.

Own and borrowed types

In turn, the money capital is divided into own and borrowed. Own - these are the funds that the company owns, however, tangible assets also belong to own possession if they are also owned by the organization. Equity is defined as the difference between all assets owned by a company and its liabilities.

Borrowed capital usually has a monetary form, however, the use of tangible borrowed capital is also common and takes the form of leasing or rent. Its sources are varied:

1. Loans - both short-term and long-term.
2. Borrowed amounts of money.
3. Advance payments to the company against the guarantee of delivery of goods or services.
4. Rental of means of production.
5. Leasing of means of production.

It is characteristic that it easily flows from one form to another, in fact, the entire production of goods and services is based on this.

Authorized capital

The capital owned by a company is all of its assets valued in cash. At the same time, this estimate does not include borrowed funds, the share of which in the company's turnover can be very significant. The authorized capital is part of the company's own capital, so it also cannot be classified as borrowed in any way. In this regard, the law establishes a clear dividing line between these types.

Initially, the authorized capital is equal to own enterprise, this is observed when establishing a legal entity. If the company managed to earn, and did not burn out immediately, then gradually the amount of equity capital at the expense of profit exceeds the size of the authorized capital. Also, to increase working capital, the company can attract borrowed funds.

How is the authorized capital formed

The authorized capital is, in fact, the investment of the owners of the enterprise in it. It is formed in different ways, depending on what organizational and legal form is chosen for the enterprise. There are two main types for legal entities:

• partnerships;
• joint-stock companies.

The difference between them is that in order to become the owner of a joint-stock company, it is necessary to buy shares - documents that give the right to own part of the enterprise. At the same time, in order to become a co-owner of a partnership, it is necessary to be one of its founders who has invested his own funds in its authorized capital or to buy out the share of another or other partners.

Thus, the authorized capital of joint-stock companies is formed through the sale of shares, and partnerships - through the contributions of the founders, in exchange for which they receive equity ownership of the enterprise. The main difference between these types of enterprises is that in joint stock companies it is usually much easier and faster to change the composition of the owners of the enterprise, and their number is much larger. If we are not talking, of course, about closed joint-stock companies.

It is also important that the management of joint-stock companies is carried out by the board appointed by the meeting of shareholders, and the partnership - by its members themselves. Such a difference between these forms of enterprise leads to the fact that, on average, partnerships are a convenient form for relatively small enterprises, and joint-stock companies for huge ones.

In addition, there are two more forms of organization of companies, however, they are less popular, we are talking about municipal enterprises and cooperatives. Funds for the establishment of municipal companies are formed from the funds local budgets or through transfers from the national budget. Such formation of the statutory fund usually does not mean the foundation of a new material and technical base, but the re-registration of an already existing one under a new name as part of the reorganization of the totality of municipal enterprises.

Cooperatives, as well as artels, form their authorized funds from the share contributions of their participants. Usually, cooperatives unite people who work together in the enterprise they founded, that is, the labor collective and the owners of the enterprise are either completely or basically identical. Cooperatives are usually different from partnerships. a large number participants and a significantly smaller, if not completely absent, impact of the amount of funds invested in the enterprise on the right of a person to take part in its management and count on solid payments from the enterprise's income.

Use to cover the debts of the enterprise during its liquidation

It is also worth noting that the owners of cooperatives have a higher responsibility than the participants in most partnerships. It is comparable only with the liability of the participants in a partnership with full liability. The majority of partnerships have partial liability. Such an enterprise is liable in the amount of its authorized capital, which is usually not enough to fulfill all obligations in the event of the company's bankruptcy.

However, what to do? According to the law, persons in respect of which limited liability partnerships have obligations are ready to provide for their interests only from statutory funds, while the personal property of members of the partnership or their shares in other partnerships cannot be used to pay off debts incurred during bankruptcy. limited partnerships.

Resizing, additional and reserve capital

During the operation of the enterprise, its authorized funds may increase. This is possible when new members are admitted to the partnership or when additional shares are issued. It is worth noting that all cases in which an increase in the size of the statutory state is allowed are prescribed by law. In order for changes to be recognized legally, they are formalized taking into account the requirements of the law.

Also, additional authorized funds can be created when shares are sold above their nominal value, this can happen if demand for them exceeds supply. Obtained in this way additional funds are credited to additional savings - part of the statutory ones. They are used to increase the reliability of the company in order to increase the amount of funds that can be used to pay off debts. For the same purpose, a reserve stock is formed, it is filled from deductions made from the company's net profit, the size of these deductions should not be less than five percent.

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The amount of deductions and the very formation of reserve funds are prescribed by law, it also establishes that the amount of reserve capital in relation to the authorized capital should not be less than fifteen percent. The additional principal amount, also, according to the law, is not spent for its inclusion in the profit of the enterprise and ensures payments to the company's creditors.

What is the authorized capital of an LLC for, how is it formed, where is it stored and can it be spent? In this article, we will answer these and other most common questions about the authorized capital of an LLC.

The concept and functions of the authorized capital

There is no definition of the authorized capital (hereinafter referred to as the CC) in the legislation. But based on the meaning of the existing norms on the Criminal Code, we can say that this is a monetary value that reflects the minimum size of the organization's property, which ensures the interests of its creditors.

Answering the question of why the authorized capital in an LLC is needed, we can say that the management company performs 3 functions at once:

• Starting. At the stage of LLC creation, capital is the material base, which should be sufficient for the legal capacity of the organization to arise. Every company has a management company; without it, it is impossible to register an LLC. Information on the size of the authorized capital is necessarily included in the charter (Article 12 of the Law "On LLC" dated February 8, 1998 No. 14-FZ).
• Security. The Criminal Code acts as a guarantor of the interests of creditors (clause 1, article 14 of Law 14-FZ). Therefore, the law established the minimum size of the UK, as well as the rule that it is impossible to release the founders from the obligation to pay their share in the capital.
• Certifying. With the help of the Criminal Code, the size of the share (participation) in the company is established. The size of the shares, in turn, predetermine the structure of voting when making decisions at general meetings of participants (hereinafter referred to as GMS), and also affect the distribution of profits.

The structure of the authorized capital of LLC

The capital of an LLC is divided into shares, which determine the degree of participation in the company. The entire capital is 100%, and the share of each participant is determined as a proportion to overall size. The size of the share can be indicated in the documents of the company and the Unified State Register of Legal Entities both as a percentage and as a simple fraction.

The ratio of shares when creating an LLC can be any (for example, one of the 2 participants can have a share of 99%, the other - 1%). A single participant may own all 100% of the UK, but this does not happen in all cases when the participant is 1. It is allowed, albeit temporarily, when the share belongs to the company itself.

The number and size of shares of LLC participants during economic life The latter can be changed: both the entire share and its part can be sold / donated to other participants, and, under certain conditions, to third parties. In addition, a share or part of it may pass by way of a singular or universal succession.

IMPORTANT! The law does not prohibit limiting in the charter the maximum size of a share owned by 1 participant, as well as establishing a ban on changing the ratio of shares. But these restrictions should apply to all participants.

Nominal and actual value of shares in the authorized capital

Since the size of the authorized capital is calculated in rubles, the shares of the participants also have a monetary value - the so-called nominal value. The par value of a share is a stable indicator that remains unchanged despite changing economic and other conditions. It ensures the stability of the position of the participants in the LLC.

The par value of a share is defined as the ratio of the authorized capital to the size of the share.

IMPORTANT! The size of the UK is indicated in the charter necessarily. But the size of the shares and the corresponding nominal value since 2009, it is not necessary to include in the charter.

Along with the nominal value, there is also the real value. It is to her that the amount paid to the withdrawing participant of the company corresponds. This value is determined as a proportion of the amount of net assets, proportional to the size of the share. Net assets are calculated according to accounting data in accordance with the Procedure approved by the Ministry of Finance of the Russian Federation in Order No. 84n dated August 28, 2016.

Thus, the actual value can be much higher than the nominal value and vary depending on the exchange rate, the value of the property, taking into account depreciation, etc. The sale value of the share can be even higher than the actual value (if the seller wishes) and is predetermined by such factors as the position of the organization on market, its prestige, etc.

Terms and methods of payment of shares in the capital of the company

Payment of the Criminal Code is regulated by Art. 15-16 of Law 14-FZ. At the time of registration of an LLC, the authorized capital may not yet be paid. The memorandum of association (or the decision to establish, if the LLC was created by 1 founder) may provide for a period for payment of the authorized capital, not exceeding 4 months from the date of state registration.

If, after this period, the participant still does not pay his share, then it (or its unpaid part) passes to the LLC and must be sold within a year in accordance with Art. 24 of the law 14-FZ. A participant who has not paid the share in full shall vote at the GMS only within the limits of the paid part of the share.

The payment for a share can be:

• cash in any currency;
• securities;
• items not withdrawn from circulation and not limited in circulation;
• property rights and other rights that can be subject to monetary value.

If the contribution is made in property, and not in money, then its monetary value must be approved by the GMS unanimously. But when the share or part of it paid by the property has a face value of more than 20,000 rubles, it is imperative to involve an independent appraiser.

IMPORTANT! The share is paid at a price not lower than its face value. It is not forbidden to pay for a share with property, the value of which is higher than the face value of the share. In this case, the LLC has the right to return the difference.

It is possible that the share will be considered paid as a result of the offset of the claim against the LLC. This is possible only with an increase in the Criminal Code (i.e., with an additional contribution), if the OSU unanimously decided to agree to such a set-off (clause 4, article 19 of Law 14-FZ).

The size of the authorized capital: limits, whether it is possible to change

The authorized capital can be formed in any amount, but not less than the minimum amount established by paragraph 1 of Art. 14 of the law 14-FZ. Since 2008, it has been 10,000 rubles, which should be recognized as a rather small amount (which is unlikely to guarantee the interests of the company's creditors).

The value of the CC may change. The decision to do so is always made by the OSU. So, at any time, at the request of the participants in the organization, the Criminal Code can be increased without restrictions on amounts.

As for the reduction of the Criminal Code (Article 20 of Law 14-FZ), it can be mandatory or voluntary. So, for example, it is obligatory to reduce the capital by the face value of the share that passed to the company and was not sold within the period established for this (the so-called redemption of the share).

Voluntary reduction of the Criminal Code is possible subject to 3 conditions:

• MC will not become less than the minimum size;
• the registration authority has been notified of the procedure;
• creditors were notified of the reduction by at least two publications in the State Registration Bulletin.

The reduction of the Criminal Code is subject to state registration, while the charter is adopted in a new edition or changes are made to it.

Where is the authorized capital of an LLC stored and can it be spent?

The question of where the authorized capital is stored is not entirely correct due to the fact that the UK is a conditional value, and not a specific amount and / or property mass, which remains unchanged.

By itself, the payment of shares in the Criminal Code in money or property is necessarily reflected in accounting. The property is entered on the balance sheet as an inventory item or a fixed asset. In this case, all accounting entries are made only after the registration of the LLC.

The money may actually be in the cash register or on the current account of the LLC, and the property will be on the balance sheet. At the same time, it is not forbidden to spend the authorized capital for any needs of the company, to use and dispose of the property made as a contribution to it. On the account of the organization there may be an amount that is less than the authorized capital.

Only the financial condition of the company at the end of the second (or any subsequent) financial year is important. If at this moment the value of net assets is less than the value of the Criminal Code, then in accordance with paragraph 4 of Art. 30 of Law 14-FZ, within 6 months, the company must choose 1 of the options:

• Reduce capital.
• Perform liquidation.

The authorized capital is a conditional value that has a monetary value and consists of the contributions of the company's participants. Its structure and size may change during the operation of the LLC. The contributed capital can be spent, but it must not be allowed that at the end of the 2nd and subsequent financial years, net assets will be below its value.