Comment by dathinab
2 years ago
It's 1€ (or more on your choice, usually ~100€) in Germany, if you go with a UG instead.
You also don't "pay" 25k, it's more like your GmbH has to have constant reserves of 25k used in case of an insolvency. Through this means:
1. It's not limited "cash", but can also include e.g. a bought office room, machinery or even resources (it just must always be equal or above 25k at any point in time eve if the company also has 50k dept) (through I'm not sure if it can be 100% non-cash, also only cash for a UG I think)
1.1. Which means it's much less big of a deal for a classical company, as e.g. office+car+machinery can easily be 25k+.
2. You get it back if the company is dissolved without insolvency.
Lastly you can start a GmbH with 12.500€ but then you are liable for the missing 12.5k in case of an insolvency.
The 25k are tha capital of the GmbH, no need to have it in cash reserve. If you go for an initial value of less, the owners are liable for the reminder, but not more.
> You also don't "pay" 25k, it's more like your GmbH has to have constant reserves of 25k used in case of an insolvency.
It’s not even that. The GmbH can use that money to buy things or pay for services and entirely use them. There’s no guarantee that there’s any money at all in a GmbH - the only guarantee you have is that someone invested 25k at some point in the past.