Typically, the founder or its respective founder holding entity will be (one of) the initial subscriber(s) for the shares in the GmbH. Payment for the shares is usually done in cash by way of a cash contribution (Bareinlage) of the respective nominal amounts of the shares subscribed for. Alternatively, founders may also make contributions in kind (Sacheinlage), such as property, equipment, or intellectual property; however, due to higher complexity and review obligations of the commercial register in case of a contribution in kind, in practice this would only be the case in a combined contribution in cash and in kind (kombinierte Bar- und Sachkapitalerhöhung). A contribution in kind would for example require the submission of a valuation report prepared by an independent appraiser.
The contribution in cash needs to be made by way of transfer of respective funds to the company's bank account. A bank account of a shareholder, even if held for the benefit of the Company, would not be sufficient.