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On changing the size of the authorized capital of legal entities

In the normal course of business, many legal organizations are faced with situations that require them to make some changes. These may be, the appointment, or dismissal of directors, change of activity, an increase, or decrease of the authorized capital and so on. Our company offers services of high-quality and quick implementation of all changes to the registration of companies in Yerevan.

The RA law provides several ways to increase and decrease the charter capital of a legal entity:

Capital can be increased:

  • Due to the property of a legal entity;
  • Due to the contributions of the participants and/or third persons;
  • Due to the placement of additional shares;
  • Due to an increase in the nominal value of the shares.

The RA legislation provides the following ways to reduce the authorized capital of the entity:

  • Due to the reduction of the nominal value of shares of all members of society in the authorized capital of the company;
  • Due to the reduction of the nominal value of shares, or due to reducing their total number;
  • Due to the acquisition of the shares, which is allowed, if this is available in the company’s charter.

After the decision to reduce the share capital, the designated legal person is obliged to inform in writing about the new size of the authorized capital to all creditors, as well as, to publish this decision in the relevant magazine, within thirty days. To apply for registration and make changes related to the capital reduction in the Republic of Armenia, is possible only after 30 (thirty) days from the date of publication of the notice.