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Authorized capital

Authorized capital is the maximum (nominal) amount for which share The portion of registered capital of a private or public limited company
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shares
( share The portion of registered capital of a private or public limited company
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stocks
) can be issued. The amount of authorized capital is set in the articles of association A document, drawn up when a Dutch company or legal person is set up, and which regulates the operations of the company and defines its purpose.
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Articles of Association
of the legal person. Only legal persons with share The portion of registered capital of a private or public limited company
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share
capital, like limited companies, have authorized capital.

Following the entry into force of the flex-limited, the authorized capital for a Dutch private limited company ( Ltd.) A legal person of which the registered capital is divided in shares
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private limited company
is optional. According to Dutch law at least 1/5th of the authorized capital for a public limited company must be subscribed. As the paid-up part of the subscribed capital has to be at least € 45.000, the authorized capital of a Dutch public limited company is usually € 225.000. 

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