The glossary to understand and take action

Shareholder current account

The shareholder current account records sums due between the company and a shareholder according to the relevant transactions and agreements.

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

Understand the scope

Definition and points to distinguish

An advance to the company is not a capital increase. Document its origin, terms, possible remuneration and repayment; a debit balance also requires specific analysis.

In your file

What this changes in practice

The shareholder current account records a financial relationship between the company and a shareholder. An advance to the company is not automatically a capital contribution. Repayment terms, possible remuneration and the supporting evidence for movements must be documented. The direction of the balance matters: a debt owed to the shareholder and a receivable from them do not raise the same questions. Flows between related parties require particular attention.

A scenario to help you understand

Educational example

A shareholder pays an invoice for the company. The expense and its financing are identified separately, then the repayment is matched against supporting documents to avoid double counting.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Justifier chaque mouvement
  • Formaliser les conditions de l’avance
  • Vérifier le solde et les conséquences fiscales

The practical question

Find out more

Comment distinguer une avance d’associé d’un apport en capital ?

L’avance crée une relation de créancier dans les conditions convenues, tandis que l’apport relève des règles du capital et des droits sociaux. Documentez la nature du versement dès son origine, avec les conditions de remboursement et d’intérêt éventuel. Un virement sans explication peut être mal interprété et compliquer les comptes, la fiscalité et les relations entre associés.

Connecting concepts

Terms to know as well

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

ShareholderA shareholder holds rights in a company by virtue of their participation in the capital or under the rules of the relevant legal form.Share capitalShare 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.Transfer pricingTransfer pricing concerns the terms of transactions between related companies and their assessment under the arm's length principle.SARLAn SARL is a private limited liability company whose organisation and shareholders’ rights are governed by law and the articles of association.ManagerThe manager performs the management and representation functions assigned to them within the company.Articles of associationThe articles of association are the company's constitutive rules, covering in particular its purpose, capital and operation.

Put it into practice

Explore further with our guides

Practical guideSARL in Luxembourg: operation and decisions of the partnersPractical guideShareholder current account: documenting advances and repaymentsPractical guideTransferring SARL shares: preparing the information and steps

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.