Example postings – company formation stage

Formation notification fee (PRH)

The formation notification fee paid to PRH is booked to other operating expenses. The fee is a public-law charge and VAT 0%. Since the company may not yet have its own bank account at the formation stage, the offsetting account is Liabilities to shareholders.

SVOP contribution

A contribution made by a shareholder to the reserve for invested unrestricted equity (SVOP). An SVOP contribution is a common way to fund a limited company's early stage before sales revenue starts coming in. The company's board decides on the contribution.

Short-term bank loan

Example: drawing down a short-term bank loan for early-stage investments. A short-term loan is a loan that is repaid within a year.

Purchase before opening a bank account

A limited company has just been formed and does not yet have its own bank account. A shareholder pays for purchases from their own account. The company books the purchase as an expense and records that it owes the shareholder. The debt is settled once there is enough money in the company's account.