Increasing the share capital of the limited liability company without changing the articles of association

Determining the amount of share capital of a limited liability company is one of the necessary elements of the company's articles of association. During the company’s operation, increasing the share capital of the company may take place either by changing the articles of association or without such a change.

The increase of share capital without changing the articles of association is in practice called a "simplified increase in share capital". It is possible if the articles of association specify the maximum amount of such an increase in the share capital and the date by which it may take place. Such a regulation included in the articles of association is a manifestation of the shareholders' consent to allow the company's financial resources to be increased in a flexible manner.

Setting up a limited liability company, or making changes to the articles of association of a limited liability company during its duration, it is worth considering the introduction of the appropriate provisions regulating this issue.