Company formation Luxembourg

 

Company Formation in Luxembourg: Your Path to Sustainable Growth

Learn how to set up a company in Luxembourg. Explore SARL, SARL-S, SOPARFI structures, costs, permits, and compliance. Expert guidance by FinancialServices.lu.

Introduction to company formation in Luxembourg

Luxembourg is one of Europe’s most attractive destinations for entrepreneurs, startups, and international investors. Known for its stable economy, transparent regulations, and strong tax advantages, the Grand Duchy offers a reliable platform for both local businesses and global expansions.

At FinancialServices.lu, we provide comprehensive company formation services that go beyond paperwork. From entity selection to regulatory compliance and tax planning, we ensure your business is built on a solid foundation for long-term growth.

Why Incorporate in Luxembourg?

Thriving Financial Ecosystem

Luxembourg is home to 120+ international banks, fund managers, and fintechs. Its reputation as a global hub makes it a magnet for foreign investment.

Attractive Tax Climate

  • Access to 80+ double taxation treaties.

  • Participation exemption regime for dividends and capital gains.

  • VAT at 17%, the lowest in the EU.

Political & Economic Stability

AAA-rated, multilingual workforce, and consistent government policies make Luxembourg a secure base for operations.

Strategic EU Access

Luxembourg is a gateway to European markets, providing efficient cross-border access for trade, logistics, and financial flows.

Types of Companies in Luxembourg

SARL (Private Limited Liability Company)

  • Ideal for SMEs.

  • Minimum capital: €12,000.

  • Liability limited to contributions.

SARL-S (Simplified SARL)

  • Perfect for startups and freelancers.

  • Capital: from €1 up to €11,999.

  • Incorporation possible in a few days.

SA (Public Limited Company)

  • Best for large enterprises or listed companies.

  • Capital: €30,000.

  • Suitable for fundraising on markets.

SOPARFI (Holding Company)

  • Used for corporate structuring & asset management.

  • Eligible for participation exemption regime.

SPF (Family Wealth Management Company)

  • For private investors managing family assets.

  • Limited to non-commercial activities.

Branch Office

  • Allows foreign companies to operate locally without creating a new entity.

Incorporation Process in Luxembourg

Our step-by-step process ensures a seamless setup:

  1. Consultation & Feasibility Study

    • Assess market, regulatory obligations, and tax implications.

  2. Choosing the Legal Form

    • SARL, SARL-S, SA, SOPARFI, SPF, or branch office.

  3. Drafting & Registration

    • Articles of association notarised and filed with the RCS (Registre de Commerce et des Sociétés).

  4. Business Permit

    • Apply for autorisation d’établissement (required for commercial activities).

  5. Bank Account Opening

    • Support with documentation and KYC compliance.

  6. Tax & Social Security Setup

    • Registration with AED (VAT), ACD (corporate tax), and CCSS (social security).

Costs & Timelines

Step
Cost Estimate
Timeline
Notary fees (SARL/SA)
€1,000 – €2,000
1–2 weeks
RCS registration
€75 – €150
1–2 days
Business permit
€24 – €50
1–2 weeks
Accounting setup
€500 – €1,500
Immediate
SARL-S minimum capital
From €1
Few days
SARL minimum capital
€12,000
2–3 weeks

Beyond Incorporation: Ongoing Corporate Services

Incorporation is the first milestone. We provide:

  • Accounting & Reporting: Bookkeeping, VAT returns, annual accounts.

  • Payroll Management: Payslips, CCSS filings, employment contracts.

  • Corporate Governance: Board meetings, shareholder registers, RBE filings.

  • Tax Advisory: Optimization under Luxembourg & EU frameworks.

  • Liquidation Services: Voluntary or simplified dissolution when required.

Company formation expert Insight

"In Luxembourg, successful incorporation means more than setting up a company. It’s about building a structure that is tax-efficient, compliant, and scalable. Entrepreneurs who plan strategically save time, costs, and avoid compliance risks."
Mickaël LOC, Managing Director, Financial Services Accountant Luxembourg

FAQs on Company Formation in Luxembourg

1. How long does it take to incorporate?

Typically 2–3 weeks for SARL/SA, and just a few days for SARL-S.

2. What is the minimum capital required?

  • SARL-S: From €1.

  • SARL: €12,000.

  • SA: €30,000.

3. Do foreigners need special permits?

Yes. Non-EU nationals require a business permit from the Ministry of Economy.

4. Can I set up a holding company (SOPARFI)?

Yes, SOPARFI is one of the most common corporate structures for tax-efficient holdings.

5. Is Luxembourg tax-efficient for companies?

Yes. Key benefits include double tax treaties, participation exemption, and low VAT (17%).

Conclusion

Incorporating a company in Luxembourg is a strategic move that combines tax advantages, EU market access, and political stability. Whether you are launching a startup, expanding internationally, or structuring a holding, Luxembourg provides a world-class platform for sustainable growth.

At FinancialServices.lu, we deliver turnkey incorporation services, from planning to full compliance.

Contact us today and start your entrepreneurial journey in Luxembourg with confidence.

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