Corporate Law & Business Law
Cash contribution
A cash contribution finances the company in exchange for equity. Understand its difference with a loan and prepare the necessary acts.
Lexicon
Corporate Law & Business Law
Share capital
Share capital is an amount recorded in the articles of association that corresponds to contributions allocated to the capital. The requirements vary according to the form of the company; the Luxembourg SARL-S notably allows capital between 1 and 12,000 euros.
This amount does not alone describe the available cash, the value of the company, or its financing needs. Preparing a creation with low capital therefore requires separately estimating initial expenses and necessary resources. The legal minimum capital meets a condition of constitution; it does not guarantee that the activity can finance its first months.
In Luxembourg, the minimums for the classic SARL and the SA are respectively 12,000 and 30,000 euros. These amounts serve to compare corporate forms; the choice must also take into account governance, partners, and operating costs.
Official Sources
[ TO GO FURTHER ]
Other Associated Definitions
Explore Complementary Concepts
Corporate Law & Business Law
Contribution in kind
A contribution in kind transfers a property to a company in exchange for equity. Ownership, value, and documents: points to verify.
Corporate Law & Business Law
Limited Liability Company (SARL)
The classic SARL is constituted before a notary with at least 12,000 euros in capital. Understanding shares, management, and liability limits.
Corporate Law & Business Law
Simplified Limited Liability Company (SARL-S)
The SARL-S allows for simplified constitution with capital from 1 to 12,000 euros. Partners, activity, and formalities remain regulated.