In accordance with the legislation of the Russian Federation, enterprises - private, state or municipal, must have authorized funds. What is their purpose? How are the corresponding funds formed, adjusted and used?
What is the essence of the term “authorized fund”?
First, let's determine the essence of the term in question. The concept of "authorized capital" has several meanings.
In a broad sense, this term can be considered consistent with the property of any enterprise (private, state), which is presented in monetary terms, tangible and intangible assets. In a number of contexts, it can be synonymous with the concept of "authorized capital", which corresponds to the resources of a private enterprise.
In its turn, in the narrow sense, the authorized capital is property owned only by state or municipal business entities.
We study, therefore, the term in question in two of the most common interpretations:
- as corresponding to the property of private firms (acting as a synonym for the concept of "authorized capital");
- as a denoting resource used in the economic activities of state and municipal enterprises.
Statutory fund of state and municipal economic entities
We study the specifics of a narrower interpretation of the term in question. Its essence is determined by the legislation of the Russian Federation on the activities of state and municipal enterprises.
In accordance with these provisions, the statutory fund is the minimum ownership of companies owned by the state or local authorities, which is used to satisfy the interests of creditors and other authorized persons. This resource can be formed by means of cash payments, inclusion of valuable things, various property rights in the ownership of the enterprise.
The size of the authorized capital of state and municipal organizations
The size of the authorized capital of a state or municipal economic entity is determined by law and is subject to change. As a rule, it corresponds to the values expressed in thousands of minimum wages. Usually, the requirements for the size of the authorized capital for state-owned enterprises are higher than for municipal ones.
The legislation establishes a special procedure for the formation of the resource in question - including in terms of its minimum size. We will study it in more detail.
How is the authorized capital formed?
The formation of the resource in question is carried out in the manner prescribed by law. In accordance with the provisions of the law governing these procedures, the organization’s authorized fund must be formed by the owner of an economic entity within 3 months from the moment the state registration of the company is completed.
The resource in question is considered to be formed as soon as the funds in the minimum amount or in an amount that exceeds the criterion established by law are credited to the settlement account of a state or municipal enterprise. In some cases, the formation of the statutory fund is considered valid if the necessary amount of resources has been transferred to the economic management of the entity.
The legislation of the Russian Federation establishes a procedure for increasing the resource in question. We will study it.
The procedure for increasing the authorized capital
The authorized capital is a resource that can be increased in the manner prescribed by law. This procedure can be carried out, first of all, only upon the formation of the fund in full.
An increase in the corresponding resource is possible due to the property transferred by the founder of the state or municipal economic entity, as well as from the proceeds extracted in the course of the business of the company, if it is not prohibited by law.
The decision to increase the authorized capital is made taking into account the indicators reflected in the financial statements of the business entity. The value of the considered resource after adjustment should not exceed the value of the net assets of the business entity. Simultaneously with the decision, in accordance with which the authorized capital of the company is increased, necessary changes are made to the charter of the organization.
Those documents that are needed to register adjustments in the constituent documents, as well as those sources that confirm the change in the capital of the enterprise, are submitted to the Federal Tax Service. If any sources are absent, the Federal Tax Service may refuse to register changes in the structure of the organization’s authorized capital.
This is the specifics of increasing the resource in question. But the authorized capital is property, which can also be reduced if necessary. We will study how the corresponding procedure is carried out, in more detail.
The procedure for reducing the authorized capital
The reduction of the authorized capital of the company is also implemented with the direct participation of the founder of the business entity. This procedure can be carried out at the request of the owner of a municipal or state-owned enterprise or by law. The authorized capital of an economic entity cannot be reduced if, upon the fact of a decrease in its cost indicators, it will be lower than the minimum value of this resource defined by law.
Decrease in the authorized capital: requirements for economic indicators
If at the end of the financial year the value of the net assets of the enterprise is less than its authorized capital, the owner of the relevant business entity will have to reduce the value of this fund to a value that will not exceed the value of the assets. Changes in the size of the resource in question should be registered with the Federal Tax Service in the manner prescribed by law.
If, at the end of the financial year, the amount of net assets is less than the minimum authorized capital, then if this ratio of economic indicators remains for 3 months, the owner of the enterprise will have to liquidate or reorganize the company. The value of net assets in this case is determined on the basis of information recorded in accounting.
If the company does not ensure the completion of the authorized capital to the required value, or if it does not initiate the liquidation or reorganization of the company in the cases provided for by law, the creditors of the business entity will have the right to request early fulfillment of existing obligations or compensation for losses incurred.
Such is the essence, the specifics of the formation and adjustment of the size of the authorized capital in state enterprises and those established by municipal authorities. Let us now consider the essence of the term in question in the context of the work of private structures. For example, business entities.
Statutory fund, or capital in business entities
The authorized capital, or the capital of an organization, is one of the key sources of property of a private business entity. This resource is formed mainly due to the contributions of owners - directly during the establishment or in the process of business development.
The authorized capital of an organization is the property of the company, which is used primarily to satisfy the interests of the organization’s creditors, as is the case with state-owned enterprises. Its value is reflected in the constituent documents of an economic entity.
Minimum authorized capital
The minimum size of the corresponding resource is ten thousand rubles for the LLC. For joint-stock companies it is 100 times the minimum wage, for public joint-stock companies - 10 times more. The largest minimum authorized capital is set for banks; it amounts to 300 million rubles.
The corresponding property of an economic entity must be formed within a certain time frame. So, the participants of the LLC, for example, must make contributions to the charter capital of the LLC within 4 months from the date of its registration with the Federal Tax Service.
The composition of the authorized capital in business companies
The resource in question can be represented by cash, various stocks, material values or, for example, property rights. When the participants of the LLC contribute certain types of property to the authorized capital, it is necessary to confirm the value of the invested resources through an independent assessment. The type of property under consideration is not subject to taxation and is not considered as expenses of a business company.
Authorized capital and participation of business owners
If there are several founders of the company, then the share in the authorized capital of each of them should be determined. Corresponding property shall be contributed to the cash desk of the enterprise or to its current account. If one of the founders of the company leaves its structure, then his share in the authorized capital must be reimbursed. For this, the legislation sets a specific period of 6 months after the end of the financial year.
At the same time, the right of the founders of firms, in particular, when it comes to LLC, to exit the business should be fixed in the constituent sources - primarily in the charter of the organization. If this agreement is not concluded between the owners, then the procedure for the founder to leave the company cannot be carried out at his request.
Functions of the authorized capital in a private organization
The statutory fund of a private company is characterized by special functions. Such as, for example:
- distribution of shares in business ownership between founders;
- ensuring the protection of the interests of creditors: in the event that the company that took the loan is insolvent, authorized persons will be able to compensate for losses from the funds that make up the authorized capital of the company.
The strategy of investing in the appropriate resource of the company is the most important component of the work of enterprise managers. Corporate governance is a key area of activity for managers of an economic entity; it involves regular consideration of issues related to investing in the authorized capital.
This is due to the fact that the corresponding resource performs another important function - ensuring the investment attractiveness of the company. The growing authorized capital of the enterprise is an indicator of competitiveness, an indicator of the successful development of the company.
Accounting for authorized capital
Corporate governance of the company also includes the organization of accounting. In particular, registration of business transactions with authorized capital. A particular contribution to the authorized capital, redistribution of shares of this resource are subject to reflection in accounting. For this, special accounts are used. In accordance with the law, in this case account 80 must be involved. When registering business transactions in the framework of settlements with founders, account 75 is involved .
Summary
So, we examined the essence of the concept of "authorized capital". It can be considered in two main contexts.
Firstly, the relevant fund in the narrow sense can designate the property of only a state and municipal economic entity. The procedure for its formation, adjustment, purpose, minimum size is determined by individual rules of law governing the activities of these enterprises.
Secondly, the term “authorized capital” may correspond to the property of a private enterprise. In this case, it can be considered as a synonym for the concept of "authorized capital".
Requirements for the size and features of property management of a state or municipal and private enterprise differ significantly. So, for example, the registration of an LLC requires an authorized capital of ten thousand rubles. The establishment of a state or municipal enterprise is significantly higher. The highest minimum authorized capital is set for banks.
The main purpose of the resource in question, in general, coincides when comparing the property of private and state or municipal economic entities: it is to protect the interests of creditors and other authorized persons as a result of establishing legal relations with the company. If the company needs to urgently pay off its debt on loans and fulfill other obligations, then its authorized capital is primarily used as a source of financing.