Capital increase

Definition of capital increase

The capital increase is the external injection of equity into an existing company. In corporations, it changes the structure of equity in favor of subscribed capital.

Reasons for a capital increase

Reasons for a capital increase can be: B. Improvement of liquidity, expansion of capacity, measures of rationalization, measures of debt rescheduling, conversion of reserves and personnel management considerations. The capital increase is carried out differently depending on the legal form.

At the sole proprietorship it is often only possible through the retention of profits, since the provision of equity from private funds is limited.

In partnerships an increase can be made by the existing shareholders increasing their shares or new shareholders joining the company.

Forms of a capital increase

At an AG, a capital increase can take place in various forms. There are:

  • Ordinary capital increase
  • Conditional capital increase
  • Authorized capital increase
  • Capital increase from company funds.

In the case of the GmbH, the capital increase can be carried out by the existing shareholders or by adding new shareholders.

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