Authorized capital

Authorized capital is the maximum (nominal) amount for which shares (stocks) can be issued. The amount of authorized capital is set in the articles of association of the legal person. Only legal persons with share capital, like limited companies, have authorized capital.

Following the entry into force of the flex-limited, the authorized capital for a Dutch private limited company is optional. According to Dutch law at least 1/5th of the authorized capital for a public limited company must be subscribed. As the paid-up part of the subscribed capital has to be at least € 45.000, the authorized capital of a Dutch public limited company is usually € 225.000.