Minimum capital

{{Use dmy dates|date=April 2022}} '''Minimum capital''' is a concept used in corporate law and 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.<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{{cite journal |url=https://ssrn.com/abstract=910826 |title=Legal Capital: An Outdated Concept?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 within the 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 *Capital Requirements Directive *Leverage (finance)

==References== {{Reflist|}}

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

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