Documenting the source of funds for a company’s capital
Published on 10 October 2026 · Updated on 10 October 2026
In short
A source of funds declaration explains where the money paid into a company’s capital comes from and proves it with documents: bank statements, payslips, a sale deed, an estate declaration. In Luxembourg, the bank opening the company’s account and the notary executing the deed request it under their anti-money laundering obligations.
Definition
The source of funds is the precise origin of the sums used for a given transaction, here the contribution to the capital. It differs from the source of wealth, which explains how a person’s entire fortune was built up.
Downloadable template
Word format, to fill in. Preparatory document, not an official form or legal deed.
Good to know
- Who completes it
- Each person or company contributing funds to the capital
- Who asks for it
- Bank, notary, domiciliation agent, fiduciary
- When
- Before the account is opened and the capital is paid in
- Deferred capital
- SARL and SARL-S: cash contributions up to the minimum can be paid within 12 months, since 2 June 2026
How to document the source of funds
- 1
Amount and contributor
State the amount contributed, the currency and the identity of the contributor, individual or company.
The contributor - 2
Origin
Specify the source: savings from professional income, sale of an asset or shares, inheritance, gift, loan, dividends.
The contributor - 3
Chain of funds
Trace the path of the money, from its origin to the account making the transfer to the company’s account.
The contributor - 4
Supporting documents
Attach the documents proving each link: deed, statements, certificate, tax assessment.
The contributor - 5
Signature
Date and sign the declaration, which commits the contributor to the accuracy of the information.
The contributor
The most common mistakes
- Transfer from a third party’s account: if the money comes from a relative or another company, that third party and the reason for the transfer must be explained.
- Cash deposit: hard to justify, it almost always leads to additional questions.
- Broken chain: an unexplained intermediate transfer between two accounts is enough to block the file.
- Old or partial documents: truncated or illegible statements make it impossible to follow the amounts.
A preparatory document
This template is not an official form. The bank and the notary use their own forms and decide, based on their risk assessment, which documents they require. Preparing this declaration in advance lets you answer each of them quickly and consistently.
Next step
Secure the opening of your company’s account
We review your declaration and supporting documents before the bank meeting, to avoid back-and-forth.
Frequently asked questions
Why does the bank ask for the source of funds of the capital?
The Law of 12 November 2004 requires banks to apply due diligence measures to their clients, which may include verifying the source of funds where necessary. Paying in the capital is often the first transaction on the company’s account: the bank must understand where the money comes from before accepting it.
What documents should I provide for personal savings?
Bank statements showing how the savings built up gradually, supplemented by payslips or tax assessments proving the income. The higher the amount compared with declared income, the more precise explanations and the longer the period of documents the bank expects to see.
Can the capital be paid in after incorporation?
Since 2 June 2026, for a SARL or a SARL-S, cash contributions up to the minimum capital can be paid within 12 months of incorporation, or within a shorter period set in the articles. Contributions in kind, the premium and the part above €12,000 remain payable at incorporation. The source of funds must be justified when the payment is made.
Can a loan finance the capital?
Yes, provided it is documented: signed loan agreement, identity of the lender, repayment terms and proof of payment. If the lender is a private individual, the bank may also look into the source of their own funds. A bank loan is simpler to justify.