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How can the founder of the company add funds?

There are two options: increasing the share capital or through a loan from the founder.

Although we recommend the first solution, we are going to explain both:

The usual way of contributing funds to the company by the founders is by increasing the share capital. If you want to know how to do it, click here.

Another option, although we do not recommend it, is that the founder makes a "loan" to the company. This amount can be paid back to the founder later, but if the company has losses for one year, one of the common ways to avoid bankruptcy is to use that loan. Consequently, the founder loses the right to "claim back" the money from the company.

Updated on: 14/12/2022

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