Lexicon

Corporate Law & Business Law

Cash contribution

A cash contribution consists of bringing a sum of money to a company in exchange for equity. It participates in its equity financing and must be distinguished from a loan granted by the partner, even if both operations take the form of a transfer.

Before transferring funds, specify in writing the nature of the operation. This choice influences the documentation, the position of the contributor, and the conditions of a possible reimbursement. The bank label helps track the payment, but it does not replace the corporate acts necessary for the constitution or capital increase.

In a classic SARL, the capital must be fully subscribed and paid up upon constitution. Planning a contribution does not simply mean promising future financing. The file must allow the reconciliation of the partner's commitment, the payment, and the allocated shares.

Official Sources

• Guichet.lu — Apports à une société
• Guichet.lu — SARL