Here we have compiled entries that you may need in the company's establishment phase.
Company Registration Fee #
In the example, the registration fee paid to the PRH (Finnish Patent and Registration Office) is recorded under other business expenses and the Government Fees account. The registration fee is a public law fee with 0% VAT.
Recording Share Capital #
The recording of share capital consists of several different stages depending on the progress of the company's establishment. (Stage 1) When the articles of association are approved, the company incurs receivables from the subscribed shares. (Stage 2) The receivables are eliminated when the agreed subscription price is paid into the bank account. (Stage 3) The subscription price is recorded in the share capital account only when the company is registered in the trade register.
Stage 1. The company's articles of association have been approved, and shares are subscribed.
Stage 2. The actual share amount is paid.
Stage 3. The company is registered in the trade register.
Shareholder's SVOP Investment #
A shareholder in a limited liability company makes an investment in the company's invested non-restricted equity fund, i.e., SVOP fund. SVOP investment is often a way to finance the initial stages of a limited liability company when there is no revenue yet but expenses are incurred. The decision to accept an SVOP investment is made by the company's board of directors.
Recording of Short-Term Bank Loan #
In this example, a short-term bank loan has been taken out for the initial investments of the company. A short-term loan typically refers to a loan that is repaid within one year.
Recording an Acquisition When the Limited Company Does Not Have Its Own Bank Account #
In this example, the limited company has just been established, and it does not have its own bank account yet. The acquisitions are paid from the shareholder's personal account. The company owes the shareholder for these acquisitions, and it can be settled when the company's own account has enough funds.
