# Minimum capital

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{{Use dmy dates|date=April 2022}}
'''Minimum capital''' is a concept used in [corporate law](/source/corporate_law) and [banking regulation](/source/banking_regulation) to stipulate what assets the organisation must hold as a minimum requirement. The purpose of minimum capital in corporate law is to ensure that in the event of insolvency or financial instability, the corporation has a sufficient equity base to satisfy the claims of creditors. In banking and financial regulation it is normally referred to as the [capital requirement](/source/capital_requirement).<ref>{{cite journal |url=https://ssrn.com/abstract=910826 |title=Legal Capital: An Outdated Concept? |year=2006 |last=Armour |first=John |journal=European Business Organization Law Review |volume=7 |pages=5–27 |doi=10.1017/S156675290600005X |ssrn=910826}}</ref>

==Corporate law==
All [public companies](/source/public_companies) within the [European Union](/source/European_Union) are required to hold at least €25,000 in capital, although many countries go above this minimum requirement.<ref>{{CELEX|32017L1132|text=Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law}}</ref><ref>{{Cite web|url=https://www.dlapiperintelligence.com/goingglobal/corporate/index.html?t=03-minimum-capital-requirement|title=Minimum capital requirement around the world - DLA Piper Guide to Going Global}}</ref> The requirement is e.g. £50,000 in the United Kingdom (England and Wales), of which at least 25% must be paid up (of the nominal amount and of any premium).<ref>{{Cite web|url=http://www.dlapiperrealworld.com/law/index.html?t=corporate-vehicles&c=GB-ENG-WLS&s=setting-up-a-corporate-vehicle&q=minimum-capital|title=Minimum capital in UK - England and Wales - DLA Piper REALWORLD}}</ref>

==Banking regulation==
{{Main|Capital requirement}}
*[Basel II](/source/Basel_II)
*[Capital Requirements Directive](/source/Capital_Requirements_Directive)
*[Leverage (finance)](/source/Leverage_(finance))

==See also==
*[Banking regulation](/source/Banking_regulation)
*[Corporate law](/source/Corporate_law)
*[UK insolvency law](/source/UK_insolvency_law)

==References==
{{Reflist|}}

==External links==
*[https://capstonetrade.com/ Capstone Capital Group]

{{DEFAULTSORT:Minimum Capital}}
Category:United Kingdom company law
Category:Capital requirement

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