Change in the Capital Registration Procedure in the Business Entities Register

Change in the Capital Registration Procedure in the Business Entities Register

March 29, 2024

On March 25, 2024, the Business Registers Agency (“BRA”) published a notice on its website regarding the amended procedure for registering changes in the capital of business entities, effective from April 2, 2024 (available here).

The subject change pertains to increases and/or decreases in capital for any reason, and it consists of registering all increases or decreases as a single total amount of capital after the change.

The purpose of this change is to simplify the overview of capital status and shareholders’ contributions for business entities and all interested parties.

Accordingly, when a company carries out a capital increase procedure and has previously registered multiple individual payments for the same, the registrar will, when issuing the decision, delete all individual payments and register only one, representing the sum of all previously registered payments as well as new payment. The same principle will be applied in the case of a capital decrease, i.e., the registrar’s decision will record the difference between the total existing capital and the amount of decrease.

Furthermore, all dates of individual payments or entries will be deleted, and the date of payment or entry will be registered as the date of issuing the decision implementing the specific change (as, in accordance with the provisions of the Companies Law, the share capital is considered increased or decreased on the date of registration with the BRA).

This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.