Minimum Capital
/ˈmɪnɪməm ˈkæpɪtl/
Definitions
- (n.) The legally mandated lowest amount of capital a company or financial institution must hold to operate or register under relevant laws.
The corporation failed to meet the minimum capital requirements set by the regulatory authority.
Forms
- minimum capital
Related terms
See also
Commentary
Minimum capital requirements vary by jurisdiction and entity type and serve to protect creditors and maintain financial stability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.