Minimum capital refers to the minimum amount of funds that must be invested in a company at the time of its formation.
In Luxembourg, different types of companies have varying minimum capital requirements; for example, a SARL (limited company) requires a minimum of 12,000 euros. This capital serves as a financial safeguard, ensuring that the company has a solid foundation to begin operations. Adequate minimum capital also contributes to a company’s credibility and ability to secure further investment in Luxembourg’s rigorous financial markets.