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Incorporating Companies with Non-Cash Capital Contributions

Incorporating a company entails choices that will shape its operation long after registration. Assets other than cash may form part of a company's initial capital, subject to rules on valuation, ownership and effective transfer.

What to keep in mind

Identify the assets, supporting title documents, valuation method, approvals and the mechanism for transferring them to the entity.

An unsupported valuation or failure to transfer an asset can generate disputes and capital-integration problems.

Distinctions often confused

A promise to provide services is not automatically equivalent to a legally admissible capital contribution.

Frequently asked questions

Can machinery be contributed to an SA or SRL?
Potentially, provided the relevant valuation and contribution requirements are met.
Is agreement among the founders enough to set any value?
No. Statutory valuation and registry safeguards may apply.

Informational content. It is not a substitute for professional advice.