In the economic activity of an enterprise, there is often a need to replenish working capital. In this article we will look at the main legal ways to raise money for an enterprise. The article will be useful to those managers, financial workers, accountants and lawyers who are gaining experience in financial management. Experienced specialists will learn what nuances need to be taken into account when replenishing the working capital of an enterprise in connection with the entry into force.
Let us make a reservation that in this article we will not consider the situation with an enterprise obtaining a bank loan.
So, there are 3 main ways to raise money for an enterprise.
1. Increasing the authorized capital
The founders can increase the authorized capital of the enterprise by replenishing it with cash.
Advantages of this method:
1) The operation of receiving money from the founders who increased the authorized capital is not subject to any taxes.
2) After depositing money, the company has no debt to creditors.
Disadvantages of this method:
1) The enterprise needs to make changes to the statutory documents and go through the procedure of state registration of these changes. This involves additional costs of time or money if you want to use the services of outsourced lawyers. Also, data on the changes, along with a copy of the new charter, will need to be submitted to the bank.
2) If you want to return the money to the founders, this will not be easy and simple. It will be necessary to make changes to the charter again, register them, etc. (see above).
2. Advance payment for goods, work, services
You can bring money to a company by transferring it from another company or individual as an advance for goods, work, services.
The advantage of this method is
simplicity of documenting the operation. In order for the money to be credited to the company’s account, the buyer or customer only needs to issue a payment order and send it to the bank. It is also advisable for the parties to draw up a written agreement under which money will be received.
Flaws:
1) The company has a debt to the buyer or customer, which will need to be repaid or written off from the balance sheet over time.
Write-off of debt from the balance sheet upon expiration limitation period is associated with one unpleasant point: an enterprise that pays income tax will have to include the amount of debt in income. There are several legal ways to extend the statute of limitations. We will talk about them in.
2) Negative tax consequences.
If the enterprise that receives the advance pays a single tax, the amount of the advance is included in the single tax base. If an enterprise is a payer, then upon the first event (receipt of money) it has VAT obligations.
Good news for payers: Tax Code of Ukraine from 01/01/2011. allows you not to include the amount of advances received from customers in income, which does not lead to negative consequences for income tax.
3. Financial assistance
The most common option for replenishing an enterprise's working capital is repayable financial assistance.
Advantages:
1) Relative simplicity of documenting the operation. In addition to the payment for transfer Money from the lender (Ukrainian - posikodavets), the parties will need to draw up a loan agreement (Ukrainian - agreement posiki). Chapter 71 of the Civil Code of Ukraine is devoted to the loan agreement. A sample agreement can be downloaded here:
Loan agreement (agreement provisions) download:
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It is worth considering that if repayable financial assistance is provided by the founder, who is also the director of the enterprise, it is better to issue a power of attorney for the right to conclude a loan agreement on behalf of the enterprise in the person of the director in the name of an employee of the enterprise, for example, deputy director or chief accountant. This is done in order to avoid a situation where the contract is signed on both sides by the same person.
A sample power of attorney can be downloaded here:
Power of attorney to conclude a contract download:
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2) The absence of negative tax consequences or the ability to minimize them.
If an enterprise operates on a single tax basis, repayable financial assistance is not included in the single tax base. An enterprise that pays income tax includes in income the amount of financial assistance received only when it is received from defaulter income tax and was not returned at the end of the quarter (Tax Code of Ukraine, clause 135.5.5). In the period when financial assistance is returned, it goes into expenses. If repayable financial assistance is received from payer income tax and not returned at the end of the quarter, conditional interest is accrued on it in the amount of the NBU discount rate for each day of its use (clause 14.1.257 of the Tax Code). The amount of conditional interest is included in income.
The Tax Code of Ukraine introduced the following positive innovation from 01.01.2011: if repayable financial assistance is received from the founder, regardless of whether he is a profit tax payer or not, and is returned within 365 days, its amount is not included in the income of the enterprise.
In order to avoid negative tax consequences in a situation where refundable financial assistance is not returned at the end of the quarter, no one is preventing the enterprise from returning this financial assistance on the last day of the quarter and receiving it again on the first day of the next quarter.
The negative consequences of receiving repayable financial assistance are:
the company has a debt to the lender, which must either be repaid or then written off from the balance sheet.
Of course, the enterprise can also receive irrevocable financial assistance, then there will be no debt to the one who provided it. Based on the norms of the Civil Code of Ukraine, non-repayable financial assistance is a type of gift agreement. At the same time, the following must be taken into account.
Firstly, returning the money to the person who gave it will be possible only within the framework of a new agreement.
Secondly, for an enterprise that pays a single tax, the money received will be subject to a single tax, and for a profit tax payer, according to clause 135.5.4 of the Tax Code of Ukraine, it goes directly to income.
In general, based on what was stated above, choose which of the listed methods of replenishing funds is the most acceptable for your company.
In the process of carrying out entrepreneurial activities, the question quite often arises: “How to contribute money or other property to the company and not have claims from the outside after that?” tax authorities?».
Let's figure it out. First, let's decide who contributes the property. It could be:
- A person who is not a founder or shareholder of a company.
- The founder of the company or shareholder.
If money is deposited by an outsider
With this option, the most reliable and simplest option will be the following. Drawing up a loan agreement, either interest-free or at a low interest rate.
Note that the loan agreement according to the Civil Code is paid, this provides for the receipt of interest from the borrower on it. But in the contract itself, you can stipulate a condition that it is free of charge.
Some entrepreneurs fear that the tax authorities may see a material benefit from saving on interest if the loan is issued at a low interest rate or interest-free. But these fears are unfounded. Tax authorities do not have the right, by analogy with income tax individuals, charge the organization income tax on the material benefits from saving on interest.
In the future, the loan will, of course, have to be repaid. Debt forgiveness, as an option, is only suitable for a founder with a share of more than 50%.
If the founder contributes funds
If the founder contributes property, then it is necessary to decide what size of share in the authorized capital of the company belongs to him: more or less than 50%.
The founder's share is more than 50%
Such a founder can easily contribute both money and property, registering this operation as gratuitous assistance from the founder. But keep a few points in mind:
- The founder must own a share of more than 50%, for example 50.01% (if we are talking about a joint stock company, then 50% plus one share).
- If fixed assets are contributed, then you should not sell them within one year from the date of their transfer by the founder. Otherwise, according to the rules of the Tax Code, the benefit cannot be applied and the cost of the fixed asset will have to be included in the income tax base and taxes will be charged on the transaction for the receipt of such property.
- Regarding the calculation of depreciation on transferred fixed assets, the position of the Ministry of Finance has changed several times. If in 2006 the opinion was expressed that such property was depreciated in the usual manner, then in 2012 the opinion changed to the diametrically opposite one - it is impossible to depreciate such property in tax accounting, and accordingly the income tax base will be higher, and the tax itself will be higher.
- Listen to the regulatory authorities and do not charge depreciation (advice, of course, for not particularly thrifty entrepreneurs).
- Be prepared to defend your position in court.
- Or do the following. The founder gives money to the enterprise, and the enterprise buys the necessary fixed assets and calmly depreciates them. There will be no claims from tax authorities.
The founder's share is exactly 50% or less
The following options are suitable:
- Increasing the company's net assets (the opportunity appeared in the Tax Code more than 2 years ago). The algorithm is simple. We convene general meeting founders, at which we decide to increase net assets and “painlessly” contribute funds to the company. Let us note that the Ministry of Finance specialists are now planning an “offensive” on this mechanism for preferential deposits of funds, but for now this option is possible for use. We are closely monitoring developments and will definitely inform you if the position of the Ministry of Finance changes.
- A suitable option is to deposit money under a loan agreement (similar to how an outsider deposits money).
To start trading on a cryptocurrency exchange, you first need to deposit money into it. This is not always an easy task and quite often beginners encounter various difficulties and do not know what to do correctly in a given situation so as not to lose their funds.
In this article we will look in detail at how to deposit money on Binance. Everything is complicated by the fact that Binance does not support fiat - ordinary money, only cryptocurrency can be deposited on the exchange, so we will have to use various third-party services, and here we need to be very careful. But let's take everything in order.
At the moment, there are two ways to deposit money on Binance or any other exchange that only supports cryptocurrency transactions:
- Use a cryptocurrency exchanger- a very unprofitable option, since most exchangers set the coin rate much higher or lower than the exchange rate (depending on the type of transaction, purchase or sale) so that only the exchanger wins. Therefore, I immediately reject this path for myself, and I advise you too.
- Use another exchange that supports fiat— there are many exchanges that support replenishment not only with cryptocurrency, but also with regular money, we can use them to replenish the Binance balance, this is the method we will consider further. I am going to replenish the exchange with hryvnia, so I will use the EXMO exchange.
Let's first figure out what operations we need to carry out to get money on Binance:
- Top up your EXMO balance with the required amount;
- Buy transit cryptocurrency;
- Transfer transit cryptocurrency to Binance;
- Buy on Binance for a transit cryptocurrency, one of the universal ones, such as ETH or BTC, for which you can already buy what you need.
How to choose a transit cryptocurrency?
Previously, Bitcoin or Ethereum were used for transfers between exchanges, in principle, this was fully justified, because these are the most popular cryptocurrencies, they are considered the most reliable, but now they have too high transfer fees, for example, for transferring BTC you will pay 5 dollars, for ETH - 3, and for USDT as much as six. Therefore, all these universal cryptocurrencies are no longer needed. You need to choose something simpler, with a minimum commission. I settled on Ripple. At the moment, the commission here is only 1 cent, which is quite acceptable, you can also choose Waves, but this cryptocurrency is not yet available on all exchanges, and Ripple is one of the most popular and is traded almost everywhere.
Another point worth paying attention to is the price of the cryptocurrency on the first and second exchanges. For example, now on EXMO you can buy Ripple for 0.00008793 BTC or 0.674 USD, and on Binance it already costs 0.00008844 or 0.682 USD, that is, we can buy it cheaper and sell it more expensive, it is important to make sure that it is not the other way around, so that you do not buy a coin more expensive , and then sell it cheaper, otherwise you will lose even more than on commission.
What will be the transfer fee to Binance?
We have chosen the cryptocurrency for the transfer, and now let's calculate all the movements that we will need to make, as well as the commission that we will pay at each step. Let's say we are going to top up our binance balance by 50 USD.
Transfer from card. We transfer 50 USD to the exchange, the Visa/Mastercard commission is 2.6%. That leaves 48.70 and 1.30 commission.
Then we need to transfer our XRP to Binance. Here the commission will be 0.02 XRP or 0.85 rubles. We will only get 72.03 XRP to Binance. If we now calculate what happened at the same rate, then we get 48.5 USD. This means that we paid 1.5 USD commission on everything. And if you could find an exchange that allows you to top up without commission with VISA, then you could do it even cheaper.
The last step is to buy Ethereum on Binance with our XRP. Rate 0.00112458 ETH to XRP. But there is one very important point on Binance: you can only sell a whole number of coins, which is why I used 50 USD in the example and not another amount. For 72 coins we will receive 0.07685 ETH, taking into account the commission of 0.05%, if this is converted into USD at the rate of 608 per ETH, it will be 46.7. Here we see a total loss of 3.3 USD. But this is no longer a commission, but a loss due to the difference in rates. You can calculate everything yourself using this table. To be able to make changes, copy it for yourself.
Compared to exchangers, here you pay the same 2.6% for withdrawing money from the card, but do not pay 3 USD per transaction on the Ethereum network and are not obliged to send your money to unknown and incomprehensible services.
How to transfer money to Binance
So, we have discussed everything and calculated everything, now it’s time to act to find out how to fund your account on binance. Please note that the calculations in the article are current at the time of writing, but everything changes very quickly and after its publication you will need to recalculate everything again, at least you need to update the rates in the table. I assume that you are already registered on EXMO and Binance.
Step 1. Top up your EXMO account from a card
Hover your cursor over the inscription "0 BTC" in the menu bar, and at the bottom of the list, select "Go to wallet":
Then select the currency with which you will top up your account. I choose USD because all the calculations were made for it:
On the replenishment page, select the Visa/Mastercard method, then enter the amount you want to replenish and click the button "Top up":
In the window that opens, you need to enter your card details, phone number and email address:
You may also need to enter a confirmation code that your bank will send via SMS. After a few minutes, the funds will appear in your account.
Step 2. Buy XRP on EXMO
Before we deposit money on Binance, we need to buy XRP. Go to the tab "Bargaining":
Selecting a pair XRP/USD in the column on the right, you can use the search if you don’t see the desired pair in the list:
Enter the number of coins you want to buy, we need 72.2 coins. Write this value in the field "Quantity", and in the field "Price" write down the current market price. It can be viewed on the right in the order book. Then click the button "Buy".
Step 3. Transfer coins to Binance
An article has already been written about this. In short, first you need to go to Binance, in the section "Funds" -> "Deposits":
Here you need to select XRP, then check the box that you understand how everything should be done, and then press the button "Continue Deposit":
In the next dialogue in the line "Withdrawal amount" we write 72.2, below we need to fill in the wallet address and Destination Tag (two fields are required!):
You can then click "Withdraw". The withdrawal will need to be confirmed via Email. This is how you can top up your binance balance.
Step 4: Buy Ether on Binance
All we have to do is wait until the Ripple blockchain confirms the transaction and buy Ethereum with the received coins. Go to the tab "Exchange" -> "Basic":
Select ETH in the column on the right, and then find it in the list XRP:
All you have to do is scroll down and find Sell XRP and in the field "Amount" enter the number of coins - 72 and select the price according to the market. Next you just have to press the button "Buy". And now you have 0.0808 ETH in your account, which you can use for trading. Or you can not change Ripple to ETH and it turns out that you topped up your Binance account even cheaper. Now you know how to top up your binance account correctly.
conclusions
In this article, we discussed in detail how to deposit money on Binance without various exchangers with a minimum commission. This can only be done with the help of exchanges. Yes, it may seem complicated, but if you figure it out and calculate everything, then everything is quite simple. If you have any questions about the article or find errors in the calculations, write in the comments!
1. Internet exchanger
Let's say you have fiat money and want to transfer it to Binance. It is currently impossible to directly deposit money on Binance, i.e. I/O on Binance is only possible with cryptocurrency. However, we will tell you the most profitable and popular ways to deposit fiat money on Binance.
The easiest way is to use online exchangers, such as:
— bestchange.ru;
- Ychanger.net;
- payments.changelly.com;
and many others.
This method is very simple, for example, you have Yandex.Money, Qiwi, Webmoney or even a bank card. Then you choose the direction on these exchangers (for example, we will show how to exchange Qiwi for Bitcoin using bestchange) you indicate what needs to be exchanged for, transfer money, enter your cryptocurrency wallet (cold, hot or multi-currency) or directly an account in the Binance exchange and within half an hour you receive cryptocurrency for fiat money. In this case, the probability that you will be deceived is zero, i.e. all these exchangers are well protected and monitor their reputation.
True, there is one point. It is very unprofitable to change cryptocurrency through such exchangers; the rate is usually very high when buying cryptocurrency, and very low when selling cryptocurrency, the difference from the real rate can reach up to 40 %, and these are significant losses, and we do not advise you to use exchangers to deposit money on Binance, or on any other exchange.
Buy Bitcoin through an exchanger
2. Exchanges with fiat input
The second way to top up Binance with money (fiat) is to use other exchanges, for example:
and others.
Behind full list exchanges and ways to exchange fiat money for cryptocurrency, please contact our Customer Support.
So, first you need to understand which payment systems are more convenient for you to use. These can be all systems known in the CIS and beyond, as well as bank cards. Yes, topping up Binance with a card is also possible.
As an example, we will talk about two popular payment systems, as well as about depositing money into Binance with a card.
3. Top up via Qiwi
One of the most popular payment systems is Qiwi. The article will not tell you how to open an account in Qiwi and how to make a deposit to this system; we assume that you have funds on Qiwi and you need to top up your account on Binance with them. To do this, you need to register on one of the exchanges where Qiwi is accepted, for example, this is:
- livecoin.net.
Registration on these exchanges is simple, verification for amounts not exceeding 10000 dollars per day is not needed (if this limit is not enough for you, then go through verification - it is not difficult). After registration, go to the wallet section (we will show the EXMO exchange as an example), and then select RUB, click the top up button and in the window that appears, enter the amount and complete the process of depositing funds on the EXMO exchange by clicking the “Top up balance” button.
Choose to top up your account via Qiwi.
Specify the amount and click “Top up balance”.
4. Select a pair on the exchange
After you have made a deposit on EXMO in rubles, go to the “Trading” section and buy Bitcoin for rubles.
Go to the “Tenders” section.
Select the required pair (for example, BTC/RUB).
5. Buy Bitcoin for rubles
After selecting a pair at the bottom of the screen (under the chart), indicate the amount of BTC you want to buy, the purchase price and click “Buy BTC”.
Specify the amount of BTC.
We indicate the price.
Click “Buy BTC”.
6. Transfer to Binance
When you bought Bitcoin for rubles, go to the “Wallet” section, select BTC and click on the “Withdraw” button. Enter your Bitcoin wallet number on Binance and withdraw. Your Bitcoin on Binance will be available within 2-3 hours.
Please note that for entering QIWI on EXMO you will pay a commission (approximately 6%) and the rate of cryptocurrencies on the exchange in pairs with fiat money is overpriced.
We choose what we output.
Click “Withdraw”.
7. Top up via Yandex.Money
Topping up Binance Yandex with money is possible. You need to use one of the cryptocurrency exchanges that accepts Yandex.money. For example, we will take the very popular Yobit crypto exchange (the Yobit.net or Yobit.io website is the same exchange). The registration process on the exchange is simple and verification is not needed there (it is only needed when you withdraw significant amounts of funds).
8. Enter on the exchange
To top up your account on Yobit, you need to go to the “balances” section and then select, for example, RUR (these are Russian rubles), you can also select USD (these are US dollars), press “Enter”.
Go to “Balances”.
Select RUR.
Press "Enter".
9. Select a payment system
Then select Payeer, enter the amount and click “Top up”.
Select a payment system.
We indicate the amount.
Click “Top up”.
10. We transfer Yandex.Money
After this, the money (within 5 minutes) goes to your account on the Yobit exchange.
Select Yandex.Money.
We are registering.
We complete the translation.
11. Buy cryptocurrency
Let's go to "Trading".
Let's choose a couple.
We buy cryptocurrency for rubles or dollars.
12. Send to Binance
When you bought a cryptocurrency, place it for withdrawal (transfer to the Binance exchange). To do this, you need to go to “Balances”, click on the “-” icon and indicate your account number on the Binance exchange. Within an hour, the funds will be available on the Binance exchange.
Please note that you will pay a commission for topping up Yobit with Yandex.Money; in addition, the rate of cryptocurrencies on the exchange in pairs with fiat money will be inflated.
Go to “Balances”.
Click “Output”.
We indicate the wallet number on Binance.
13. Top up via card
If you want to fund your Binance account with a bank card (MasterCard, Visa), then this is also possible. To do this, you will again need one of those exchanges where deposits from a card are possible. As an example, we will take the EXMO exchange again, but to deposit funds from a card on this exchange, you need to go through verification on EXMO, it will take no more 72 hours, but when it is completed, you will always be able to top up your account with a card and subsequently transfer funds to Binance.
14. Choose a currency
As described above (example with input via QIWI), you need to log into your account, then select “Wallet” and the currency that is on your card.
Go to “Wallet”.
Select the required currency.
We transfer money from a bank card.
15. Go to the trading section
As soon as you have made a deposit from your card, go to the “Trading” section and buy Bitcoin for rubles, dollars or euros.
Let's go to "Trading".
We choose a pair with fiat money.
16. Buy cryptocurrency
In the “Purchase, BTC” section, indicate the required amount of cryptocurrency, the price and complete the purchase by clicking the “Buy BTC” button.
We indicate the quantity.
We indicate the price.
Click “Buy BTC”.
17. Start on Binance
After you have purchased Bitcoin, go to the “Wallet” section, select BTC and click on the withdraw button. Enter your Bitcoin wallet number on Binance and click “Withdraw”. Your Bitcoin will be available on Binance within one hour.
Please note that you will pay a commission for replenishing EXMO with a bank card; in addition, the rate of cryptocurrencies on the exchange in pairs with fiat money will be inflated.
Select the purchased cryptocurrency.
We indicate the wallet address on Binance.
We complete the transfer by clicking on “Withdraw”.
18. The most profitable way
As you can see, you can top up Binance with money (fiat), but losses on commissions and rates will take approximately 10 before 40 % of the initial deposit amount. Therefore, the most reliable and most profitable way to deposit fiat money on Binance is to use the services of our website and our specialists. We will exchange any electronic money for cryptocurrency (at the Binance rate) for a minimal commission. Many have already used this service, and you can read