The glossary to understand and take action

Share capital

Share capital is an amount set out in the articles of association based on contributions recognised as capital, then amended in accordance with the applicable procedures.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

It must not be confused with the bank balance, equity or a shareholder loan. The minimum capital does not represent the full cost of starting up.

In your file

What this changes in practice

Share capital corresponds to contributions organised as part of incorporation or subsequent capital transactions. It measures neither the company's market value nor its available bank balance. An increase may alter the shareholders' interests and requires appropriate decisions and formalities. The nature of contributions, their payment and their documentation must be distinguished from simple loan financing.

A scenario to help you understand

Educational example

A company has used its initial capital to buy equipment. The amount of capital stated in its legal documents therefore does not mean that the same sum is still available in the bank.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Identifier les apports et leur libération
  • Distinguer capital et trésorerie
  • Documenter toute modification du capital

The practical question

Find out more

Peut-on utiliser le capital pour les dépenses de l’entreprise ?

Le capital participe au financement de la société ; il ne doit pas être confondu avec une réserve personnelle des associés. Son utilisation dans l’activité, les règles de libération et les restrictions applicables doivent être respectées. Le montant du capital ne garantit pas que la société dispose durablement de la même somme sur son compte bancaire.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

EquityEquity consists of accounting resources including, in particular, capital, reserves and results according to the applicable format.Capital dilutionDilution refers to the decrease in a shareholder's relative interest when a capital transaction changes the allocation of securities.Shareholder current accountThe shareholder current account records sums due between the company and a shareholder according to the relevant transactions and agreements.Company formationCompany formation is the legal transaction that establishes the company according to the rules applicable to its form.SARL-SThe SARL-S is a simplified variant of the SARL, subject to specific conditions concerning, in particular, the shareholders, the activity and the capital.Public limited company (SA)A public limited company (SA) is a capital company organised around shares and governing bodies defined by its legal framework and articles of association.

Put it into practice

Explore further with our guides

Practical guideSetting up a business in Luxembourg: choosing the legal form and preparing the launchPractical guideSARL-S in Luxembourg: conditions, limitations and start-up preparationPractical guideSetting up an SARL in Luxembourg: steps and documents to preparePractical guideShareholder current account: documenting advances and repayments

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.