Requirement regarding par value of stock
Argentina
Not applicable for this jurisdiction.
Australia
Branch
Not applicable – this is subject to the requirements of the foreign company's place of incorporation.
Proprietary company
Shares of a proprietary company have no par value. The "issue price" is determined by directors at the time of issue, and whether a share is fully or partly paid is determined by reference to the amount of the issue price that has been paid to the company.
Public company
Shares of a public company have no par value. The "issue price" is determined by directors at the time of issue, and whether a share is fully or partly paid is determined by reference to the amount of the issue price that has been paid to the company.
Austria
Stock corporation (AG)
The statutory minimum par value of stock is EUR1.
Limited liability company (GmbH)
The statutory minimum par value per share is EUR70.
Flexible Company (FlexKapG)
The statutory minimum par value per share is EUR1.
Bahrain
With Limited Liability (WLL)
No express provision.
Closed Shareholding Company (BSC(c))
The company's articles of association shall specify the nominal value of the share.
Foreign Branch (Branch)
No express provision.
Belgium
Public limited company (société anonyme/naamloze vennootschap)
Unless the articles of association or the decision concerning the issue of shares provides otherwise, the fractional value of all issued shares without nominal value and which are of the same class will be equal, regardless whether the shares are issued below, above or equal to the fractional value of the shares of the same class.
A detailed report on the transaction must be drawn up by the board of directors, which relates in particular to the issue price and the consequences of the transaction with respect to the membership and financial rights of the shareholders.
A report is drawn up by a statutory auditor or, in their absence, by a company auditor appointed by the board of directors, or appointed by an external auditor in the same manner, in which they declare that the financial statements and accounting data included in the report of the board of directors are true and sufficient to inform the shareholders meeting that votes on the proposal.
Limited company (société à responsabilité limitée/besloten vennootschap)
As the limited company does not have any capital, the shares in a limited company have no par value or nominal value.
Belgian branch office of a foreign company
Not applicable as a Belgian branch office has no issued shares.
Brazil
Limited liability company (Sociedade Limitada)
The quotas of a Sociedade Limitada must have a determined par value established in the articles of organization.
Corporation (Sociedade Anônima)
Par value is not required.
Canada
Corporate subsidiary (Corporation form rather than flow-through form)
For federal companies and most provincial and territorial companies, shares are issued without nominal or par value.
Chile
Not applicable for this jurisdiction.
China
Not applicable for the jurisdiction.
Colombia
There are no requirements.
Czech Republic
Limited liability company
The statutory minimum par value per share is CZK1.
Joint stock company
The statutory minimum par value of stock is not prescribed.
Denmark
Limited liability company (Kapitalselskab)
Stocks cannot be subscribed at a price below par.
Egypt
JSC
Minimum par value per share is EGP1 and maximum EGP1,000.
LLC
Quotas must be equal in value.
OPC
Single founder with all equity issued to be of equal value.
Branch
Not applicable for this jurisdiction.
RO
Not applicable for this jurisdiction.
Finland
Osakeyhtiö (Oy)
Par value may be used but it is not mandatory.
France
Société par actions simplifiée (SAS)
There is no statutory minimum par value of stock.
Société à responsabilité limitée (SARL)
There is no statutory minimum par value of stock.
Société anonyme (SA)
There is no statutory minimum par value of stock.
Germany
GmbH – limited liability company
The registered nominal amount must be at least EUR 1 per share and – in case of a higher amount per share – must be a full Euro amount.
Greece
Societe anonyme (S.A.)
Nominal value of each share may not be fixed at an amount lower than EUR0.04 and higher than EUR100. The issue of shares below par is prohibited.
The issue of shares below par is prohibited.
Limited liability company (L.L.C.)
Not less than EUR1.
Private company (P.C.)
Not less than EUR1.
Hong Kong, SAR
Limited private companies
No par value.
Hungary
Private company limited by shares (Zrt.)
A par value (ie, face value) and an issue price can differ for the same share. However, the share's issue price cannot be less than its par value.
Under applicable law it is also possible to issue no par value shares.
Limited liability company (Kft.)
The capital contribution of each quotaholder must be at least HUF100,000 (USD280).
India
Private limited company
No minimum par value for private limited companies. Normally, used par value is INR 10 per share.
Indonesia
Limited liability company
Under the Indonesian Company Law, all shares must be issued with a par value or nominal value denominated in Rupiah, except for publicly owned companies that may issue shares without any par value.
Ireland
Private company limited by shares (LTD)
All allotted shares must have a fixed nominal value. Shares must not be allotted at less than nominal value but may be issued at a premium. There is no statutory minimum nominal value.
External company
Determined by the laws of the jurisdiction of incorporation.
Israel
Company
Nominal value is not required. However, when used the nominal value will generally not be lower than NIS0.01 per share.
Branch / representative office
Not applicable.
Italy
Società a responsabilità limitata (S.r.l.)
Not applicable for this jurisdiction.
Japan
Registered branch
Depends on the governing law.
Kabushiki-Kaisha (KK)
None.
Godo-Kaisha (GK)
None.
Luxembourg
Private limited liability company (Société à responsabilité limitée or S.à r.l.)
Shares may be issued with or without nominal value. Shares with different nominal values may be issued.
Public limited liability company (Société anonyme or S.A.)
Shares may be issued with or without nominal value. Shares with different nominal values may be issued. Special limited partnership (Société en commandite spéciale or SCSp)
Partnership interests may be represented by partnership units or interests.
Malaysia
Not applicable for this jurisdiction.
Mauritius
Any shares created or issued after the commencement of the Companies Act shall be shares with no par value.
With respect to a company applying for or holding a Global Business License or an Authorized Company or company applying as Authorized Company, shares at par value may be issued.
Mexico
S.A. de C.V.
MXN1.00, or shares may be non-par value shares.
S. de R.L. de C.V.
MXN1.00, or a multiple of it.
S.A.P.I. de C.V.
MXN1.00, or shares may be non-par value shares.
Netherlands
Branch office
Determined by governing law of the head office.
B.V. (private company with limited liability)
The Minimum par value per share can be denominated in Euro or any other currency.
Co-operative U.A.
Not applicable. A co-operative does not have a capital divided into shares.
C.V. (a limited partnership)
Not applicable. A CV does not have a capital divided into shares.
New Zealand
Limited liability company
Shares of limited liability companies are not permitted to have shares issued at par value. The 'issue price' is determined by the Board at the time of issue, and it must be fair and reasonable to the company and the existing shareholders except where all entitled persons agree otherwise. Whether a share is issued fully or partly paid is determined by reference to the amount of the issue price paid by the subscribing shareholder to the company.
Branch
Not applicable, this is subject to the requirements of the overseas company's place of incorporation.
Nigeria
Every company on incorporation is required to state the amount of its issued share capital and the division into shares and the par/nominal value of the shares. However, the law does not stipulate the minimum par value of the shares of a company; it is fixed at incorporation but may be changed by members’ resolution amending the Memorandum of Association.
Norway
The number of shares and the par value of the stock have to be at least equal to the minimum share capital of a private LLC and a public LLC.
Not applicable for partnership.
Peru
Not applicable for this jurisdiction.
Philippines
Generally not applicable.
Exception is a subsidiary where any or all of shares or series of shares may have a par value or have no par value as may be provided for in the articles of incorporation, except for banks, trust companies, insurance companies, public utilities and building and loan associations (not permitted to issue no-par value shares of stock).
Poland
The registered nominal amount must be at least PLN50 per share in limited liability companies and at least PLN0.01 per share in joint-stock companies and limited joint-stock partnerships.
Portugal
LDA. companies’ quota: at least 1 EUR par value; S.A. companies’ shares: at least EUR 0.01 par value (shares with no nominal value are also permitted).
Puerto Rico
Corporations
USD0.01 or non-par value.
Limited Liability Companies
Not applicable for this jurisdiction.
Romania
Joint stock company (JSC)
-
Minimum nominal value per share amounts to RON0.1
Limited liability company (LLC)
-
Minimum nominal value per share – no minimum value
Russia
Joint-stock company (public and non-public)
The par value of all common shares of the company must be equal. The par value of the preferred shares must not exceed 25 percent of the charter capital of the company.
Limited liability company
Not applicable.
Saudi Arabia
Limited liability company
Shares have to be equal in value.
Singapore
Limited liability company
In Singapore, shares of a company have no par value or nominal value.
South Africa
Private and public companies
Companies incorporated on or after May 1, 2011 are only allowed to have no-par value shares (subject to exceptions only if required in terms of other legislation).
Pre-existing companies may have par value shares or no-par value shares, but they are not allowed to increase their number of authorized par value shares. If an increase in the number of authorized shares of a class with par value is required, conversion of such shares to no-par value must first be implemented.
External companies
Regulated by the foreign company's place of incorporation.
South Korea
Joint-stock company (Jusik Hoesa)
Minimum capital per share is KRW100; shares without par value may be issued, in which case shares with par value cannot be issued.
Limited company (Yuhan Hoesa)
Minimum capital per unit is KRW100.
Spain
Branch (Sucursal)
Not applicable (branches do not have stock).
Limited liability company (Sociedad Limitada)
There is no statutory minimum par value.
Joint-stock company (Sociedad Anónima)
There is no statutory minimum par value.
Sweden
None.
Switzerland
Stock corporation
The nominal value of a share must be larger than zero.
Taiwan, China
Company limited by shares
A company may issue either par value shares or no-par value shares.
Closely-held company limited by shares
A CHC may issue either par value shares or no-par value shares.
Limited company
Not applicable for this jurisdiction.
Branch office of a foreign company
Not applicable for this jurisdiction.
Thailand
Private limited company
Minimum par value of each share is THB5.
Public limited company
Minimum par value of each share is not specified. However, each share must be equal in value.
Turkey
Joint-stock company (JSC)
Nominal value of minimum KR1 (TL0,01).
Limited liability company (LLC)
Value of any share cannot be less than TL25.
Ukraine
Limited Liability Company
The participation interest must have a fixed par value. Participation interest must not be allotted at less than par value. There is no statutory established minimum par value.
Private Joint-Stock Company
All shares must have a fixed par value. Shares must not be allotted at less than par value. The minimum par value of the share is UAH 0.01.
United Arab Emirates
LLC
No express provision.
Branch
Not applicable for this jurisdiction.
FZ-LLC
No express provision.
FZ-Branch
Not applicable for this jurisdiction.
Dual Licensee Branch
Not applicable for this jurisdiction.
United Kingdom
Private limited company
All allotted shares must have a fixed par value. Shares must not be allotted at a discount to their par value but may be issued at a premium. There is no statutory minimum par value.
Limited liability partnership (LLP)
No statutory requirements. Requirements governed by LLP Agreement.
Registered UK establishment
Not applicable for this jurisdiction.
United States
For corporations, this will vary depending on the jurisdiction in which your corporation is organized. Some states, such as Delaware, require a par value. Other states, such as California, do not require any par value. For an LLC, par value is not required.
Vietnam
Generally, no requirement, except when listing a joint stock company where the par value of the stock offered for first-time sale to the public is VND10,000.