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| Not quite right. It's not really a deposit, you have to have this amount to start the company officialy and it's placed in a notaries account when the company is set up. Once it's been through the registre du commerce which takes about 1 week, it is returned to the company bank account, minus notary fee, including cantonal taxes, where the company can do what it wants with it, including spending it immediately on beer & fags if it wishes.
You can also put upto 50% of this money into the company as assets, such a computers, cars, office furniture, but if you go belly up, all the assets belong to the company and are sold off to highest bidder in the bankrupcy or liquidation procedures. | |
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Well, the only fee that is levied from your deposit before it is transfered to the company's account is the fee from the bank! Then you receive the invoices from the notary, the commercial register, etc.
You can use 100% (not 50%) of the CASH for the company's business. You can purchase assets that will be mentioned in the balance sheet, but you can also purchase anything that will go directly in the P&L as expenses. This is the cash of the company, it can do whatever it wants with (as long as it remains legal...).
The 50% rule applies to profit distribution. A company with a share capital shall have "legal reserves", i.e. retained earnings in the balance sheet of at least 50% of the share capital before it can distribute profits. Well, the rule is much more complicated than that, as you don't have to create the reserve all in once, but this is the basic rule. Once the reserve has been created, all the rest goes to the "free reserves", i.e. free distributable profits.