What are the most common contributions to a company foundation with contribution in kind?

For a foundation with a contribution in kind, it is in principle possible to use all assets that can be capitalised according to the principles of regular accounting. Find out here what specific requirements must be met and what are typical examples of a contribution in kind.

Requirements for a contribution in kind

In principle, everything that has a market value can be considered a contribution in kind. The things contributed must therefore be of actual economic benefit to the company. In concrete terms, four conditions can be defined:

Possibility of valuation or recognition: Only those things are eligible that have a certain value and can be entered on the assets side of the balance sheet.

The possibility of acquisition of rights by the company must exist (transferability): In order for the company to acquire a contribution in kind, the corresponding object must be transferable to the company’s assets upon incorporation or capital increase. Therefore, there must be no legal obstacles to the transfer (e.g. a contractual prohibition of transfer).

Availability (or unconditional right of entry, e.g. in the land register): The company must be able to dispose of the property in question immediately and unconditionally after it has been entered in the commercial register.

Realizability: the property must be transferable by the company to third parties. This is particularly important in the event of the dissolution of the company. The contributed asset must be realisable in order to serve as a liability substrate for the company’s creditors. The possibility of realisation presupposes the existence of at least a limited market. In addition, the transfer of the asset value must be legally permissible and legally stable.

Typical examples of contributions in kind

Although “typical” examples vary from sector to sector, the following assets often form part of a contribution in kind

• Furniture (office tables, chairs, stationery, etc.)

• IT (computers, monitors, etc.)

• Vehicles (cars, vans, trucks, etc.)

• Stocks of goods or materials (e.g. raw materials, spare parts, etc.)

• Tools (e.g. spanners, pliers, etc., but also power tools such as hammers, sanders, etc., or measuring devices)

• Software licences

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