Capital increase
Increasing capital makes your company stronger or opens the door to new partners. We explain how to do it and take care of the formalities.
What it involves
A capital increase is the operation by which a company increases its share capital. It can be done with new contributions of money or assets, or by converting reserves or debts into capital. It is approved by the partners' general meeting, formalised in a public deed (escritura pública) and registered at the Companies Registry (Registro Mercantil).
Is this your case?
- The company needs funding and you and your partners are going to put in more money.
- You want to bring in a new partner or investor.
- A partner lent money to the company and you want to convert it into shares.
- A bank or a customer is asking for the company to have more equity.
How we help
We look at the purpose of the operation and propose the most suitable route. We work out how the shares will be divided, protect the partners' pre-emption right and prepare the notice of meeting, the minutes and the certificates. We coordinate the signing before the notary and the registration, and we review any tax obligations that may arise. We can help you in Spanish, Arabic, Tamazight, French and English, at our offices in Tenerife, Gran Canaria, Málaga and Barcelona or online, wherever you are in Spain.
If a new partner comes in with the increase, we recommend signing a shareholders' agreement; and if you are seeking residence through your investment, we review investor residence.
Frequently asked questions
- Can capital be increased without contributing money?
- Yes. As well as with money, it can be increased by contributing assets, such as premises or machinery, by converting into capital a loan that a partner made to the company, or by using reserves. Each route has its own requirements, and we explain which one suits you.
- Do I lose control of the company if a new partner comes in?
- It depends on how it is done. Existing partners usually have a pre-emption right to subscribe for the new shares, and a shareholders' agreement can protect your position. We review it before you sign.
- Does a capital increase help me get residence as an investor?
- It can be part of your project, but on its own it is not enough. We review your situation as a whole and advise you on the residence permit that suits you best.
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A first conversation — confidential and without obligation — to understand whether we can help, and how.
We speak Spanish, Arabic, Tamazight (Berber), French and English.