capital social

Everything you need to know about social capital

Social capital: what is it and what is it for?

The share capital of a company corresponds to the total amount of contributions in cash and in kind transferred by the partners and shareholders. In return, these people enjoy social rights which can take the form of shares or shares. But what is the concrete usefulness of social capital? What are the obligations of companies concerning it? We tell you everything.

What is the use of social capital?

THE share capital presents 4 major interests for a company: distributing decision-making power, reassuring partners, financing the activity and obtaining a bank loan.

Distribute power within society

The main use of a service like for your share capital, it is to distribute the voting rights between all the partners of a company. These social rights or titles take the form of shares for company models such as SAS, SASU or SA. They can also take the form of social shares for SARL, EURL or SNC. A title gives its owner one vote at a general meeting.

Reassure business partners

THE share capital can also serve as pledge for creditors and business partners. Social capital is public information which must be able to be consulted on the website It must also be indicated on various company documents. With significant social capital, your partners therefore have a guarantee on your finances, a pledge to create a relationship of trust.

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Finance the operation of your business activity

THE share capital also serves as financing for business activity thanks to its contributions in money (in cash) or in goods (in kind). These funds are especially essential at the start of the activity. They will help finance the purchase of production equipment, advertising campaigns, rental of premises, the creation of a website, and many other elements.

Give confidence to banking establishments

Finally, social capital serves as financing lever from credit organizations. These establishments look, of course, at your repayment capacity, but also pay particular attention to your personal contribution capacity. In general, to launch a project, financiers ask for a minimum of 10% personal contribution. With significant share capital, you have more leverage in negotiating to obtain attractive loans.

What is the minimum amount for share capital?

The minimum amount for the share capital of a company depends on the privileged status. For the SARL, SAS, SNC and civil companies, there is no minimum amount required. It can correspond to 1 symbolic euro. On the other hand, for a limited company, there is a minimum amount. It amounts to 37,000 euros.

How to determine the amount of share capital?

THE amount of share capital of your business depends on your needs at any given time. If you want to have a project financed by a bank, it is preferable to opt for a substantial amount. It’s the same thing for giving confidence to partners. Social capital is not a fixed data. You can change its amount at the same time as your company’s activity. It is the context and your needs of the moment which will determine the amount of your share capital.