Capital contribution

Capital contribution is the amount of money or assets that owners invest into a company during its formation to support operational startup costs.

In Luxembourg, different business structures, like a SARL, have specific minimum capital requirements (for example, 12,000 euros for a SARL). This financial input is recorded as equity on the company’s balance sheet and is used to fund initial operations, ensuring that the company has a strong financial base in accordance with local legal and regulatory standards.