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Private Limited Liability Company (Société à Responsabilité Limitée (SARL))
  • Ideal for: Small to medium-sized businesses
  • Shareholders: 1 to 100 (can be individuals or legal entities)
  • Minimum Capital: €12,000
  • Liability: Limited to the amount of capital invested
  • Governance: Managed by one or more managers (gérants)
  • Taxation: Subject to corporate income tax, municipal business tax, and net wealth tax
  • Ideal for: Large businesses or companies planning to go public or raise capital
  • Shareholders: Minimum of 1
  • Minimum Capital: €30,000
  • Liability: Limited to the shareholder’s investment
  • Governance: Requires a board of directors and an annual general meeting
  • Taxation: Full corporate tax obligations
  • Ideal for: Startups, holding companies, and joint ventures seeking flexible governance
  • Shareholders: At least 1
  • Minimum Capital: €30,000 (can be in cash or kind)
  • Liability: Limited
  • Governance: Highly flexible – shareholders define the rules in the articles of association
  • Ideal for: Investment structures and private equity funds
  • SCS: Traditional partnership model with a general and limited partner
  • SCSp: Contractual flexibility and no legal personality
  • Taxation: SCSp can be tax-transparent if no commercial activity is conducted
  • Ideal for: Freelancers and solo entrepreneurs
  • Ownership: Single individual
  • Liability: Unlimited personal liability
  • Taxation: Business income is taxed as personal income

Company Registration in Luxembourg

Register your company in Luxembourg in 8 easy steps:

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FAQs

Yes. Luxembourg welcomes foreign investments, and entrepreneurs enjoy a series of advantages.
The legal forms in Luxembourg are the limited liability company, the joint stock company, the cooperative company, the partnership, and the limited partnership or sole proprietorship. Each has its own characteristics and is suited to different business goals.
Yes. The company incorporated in Luxembourg must have a registered office in the country.
The investor will have to choose a suitable business name, obtain approval for it, and draw up the company documents, such as the Articles of Association. After all the documents are in order (complete with notarized copies and/or translations if needed), they are submitted to the Trade and Companies Register.