das  Grundkapital

B2

Estimated CEFR level.

/ˈɡʁʊntkaˌpiːtal/

💰 What exactly is 'das Grundkapital'?

The term Grundkapital refers to the nominal capital of a public limited company (Aktiengesellschaft - AG) or a partnership limited by shares (Kommanditgesellschaft auf Aktien - KGaA), which is divided into shares (Aktien). It represents the financial foundation of the company and serves to protect creditors (Gläubigerschutz).

It is registered in the commercial register (Handelsregister) and must amount to at least €50,000 when founding an AG (according to § 7 AktG - German Stock Corporation Act). The Grundkapital is raised by issuing shares, with each share representing a specific nominal value (Nennwert) or a portion of the Grundkapital.

⚠️ Important: Das Grundkapital should not be confused with das Stammkapital of a GmbH (limited liability company), which fulfills a similar function but applies to a different legal form.

Article rules for der, die, and das

🧐 Grammar under the microscope: Das Grundkapital

The word „Grundkapital“ is a neuter noun and therefore uses the article „das“. It's a compound noun formed from „Grund“ (base, foundation) and „Kapital“ (capital). It is typically used only in the singular, as it refers to a specific, fixed amount.

Declension (Singular):

A plural form („die Grundkapitale“) is grammatically possible but very uncommon, as the term usually refers to the specific capital of one company.

📝 Example Sentences

1. Das Grundkapital der neu gegründeten AG beträgt 100.000 Euro.
   (The share capital of the newly founded AG amounts to €100,000.)
2. Eine Erhöhung des Grundkapitals muss von der Hauptversammlung beschlossen werden.
   (An increase in the share capital must be decided by the general meeting.)
3. Dem Grundkapital kommt eine wichtige Schutzfunktion für die Gläubiger zu.
   (The share capital serves an important protective function for creditors.)
4. Die Aktionäre haben das Grundkapital vollständig eingezahlt.
   (The shareholders have fully paid in the share capital.)

💡 Usage in Context

The term „das Grundkapital“ is primarily used in the fields of business, finance, and law, specifically in the context of public limited companies (AG) and partnerships limited by shares (KGaA).

• Typical Contexts: Company formation (Unternehmensgründung), capital increases (Kapitalerhöhung), capital decreases (Kapitalherabsetzung), accounting (Bilanzierung), shareholder meetings (Aktionärsversammlungen), insolvency law (Insolvenzrecht).
• Differentiation: It is essential to distinguish das Grundkapital (AG/KGaA) from das Stammkapital (GmbH). Both refer to the subscribed capital, but they apply to different corporate forms and are subject to partly different legal regulations (e.g., minimum amount).
• Function: It serves as the liability basis towards creditors and provides information about the company's basic financial resources.

🧠 Mnemonics to Remember

Article Mnemonic: Think of das Kapital. Like many terms related to money ending in '-al' (e.g., das Material, das Potenzial), das Kapital is neuter. The 'Grund' (foundation) part doesn't change the gender: das Grundkapital. It's the fundamental capital, and like 'the money', it's neutral 'das'.

Meaning Mnemonic: Imagine building a house. The Grund (ground, foundation) is the base. The Kapital (capital) is the money you need to build on it. So, Grundkapital is the 'foundation capital' or 'base money' required for a German public limited company (AG).

🔄 Synonyms & Antonyms

⚠️ Similar but different terms

• Stammkapital: The subscribed capital of a GmbH (private limited company). Do not confuse!
• Eigenkapital: Equity; a broader term that includes Grundkapital plus capital reserves (Kapitalrücklagen) and revenue reserves (Gewinnrücklagen).

😄 A Little Joke

Fragt der Aktionär den Vorstand: „Ist unser Grundkapital eigentlich wetterfest?“
Vorstand: „Wieso?“
Aktionär: „Na, bei den aktuellen Kursen schmilzt es ja dahin wie Eis in der Sonne!“

English Translation:
A shareholder asks the board member: "Is our share capital actually weatherproof?"
Board member: "Why?"
Shareholder: "Well, with the current share prices, it's melting away like ice in the sun!"

📜 Poem about Capital

Eine AG, ganz frisch und neu,
braucht Geld, das ist nicht einerlei.
Das Grundkapital, fest und klar,
steht in der Satzung, wunderbar.
Fünfzigtausend, mindestens rein,
so soll die Basis sicher sein.
Zerlegt in Aktien, groß und klein,
bringt es die Mittel dem Verein.

English Translation:
An AG, brand new and fresh,
Needs money, that's no trifle mesh.
The share capital, firm and clear,
Stands in the statutes, oh so dear.
Fifty thousand, at least inside,
So the foundation can safely ride.
Divided into shares, big and small,
It brings the funds to the company hall.

🧩 Little Riddle

Ich bin die Basis einer AG,
mindestens fünfzigtausend, oh weh!
In Aktien bin ich aufgeteilt fein,
Gläubiger schütz' ich, groß und klein.
Bin ich's bei der GmbH, liegst du falsch,
dort heißt mein Bruder anders halt.

Wer bin ich?(Auflösung: das Grundkapital)

English Translation:
I am the basis of an AG,
At least fifty thousand, woe is me!
Into shares, I'm divided neatly,
Creditors I protect, completely.
If you think I'm in a GmbH, you're wrong,
There my brother has a different song.

What am I?
(Answer: das Grundkapital / share capital)

✨ Other Information

Word Composition:

The word „Grundkapital“ is a compound noun, composed of:

• Grund: Meaning base, foundation, ground.
• Kapital: Meaning capital, financial resources, assets.

Together, it signifies the 'base capital' or 'foundational capital' of the company.

Legal Basis: The main regulations concerning Grundkapital are found in the German Stock Corporation Act (Aktiengesetz - AktG), particularly in the sections on formation (§§ 7, 23 ff. AktG) and capital measures (§§ 182 ff. AktG).