põhikapital

Põhikapital, often translated as share capital or registered capital, represents the initial investment made by the founders or shareholders of a company. It is the total nominal value of the shares that the company has issued. This capital serves as the financial foundation for the company's operations and is a crucial indicator of its solvency and creditworthiness. The amount of põhikapital is determined at the time of the company's establishment and is recorded in the company's articles of association.

In many jurisdictions, there are minimum requirements for põhikapital depending on the legal form of the company. For example, private limited companies (OÜ) and public limited companies (AS) typically have different minimum capital thresholds. This capital can be contributed in cash or in kind, such as property or intellectual assets, though the valuation of non-cash contributions is subject to specific regulations.

The põhikapital is not static; it can be increased or decreased through formal procedures approved by the company's shareholders. An increase in põhikapital usually involves issuing new shares, while a decrease might involve buying back shares or reducing their nominal value. The põhikapital is distinct from the company's reserves and retained earnings, which represent profits that have not been distributed to shareholders. It forms the bedrock upon which the company builds its financial structure and undertakes its business activities.