1. What are the main advantages of setting up a company in Luxembourg?
Luxembourg offers low corporate tax rates, a stable economy, access to the European market, and a business-friendly legal framework. It is also a hub for finance, technology, and investment funds.
2. What is the minimum share capital required to start a company in Luxembourg?
SARL: €12,000
SARL-S: From €1 (ideal for startups)
SA: €30,000
3. Do I need to be a resident in Luxembourg to open a company?
No, foreign investors do not need to be residents to incorporate a company in Luxembourg. However, a local registered office and a business licence may be required depending on the activity.
4. What are the ongoing compliance requirements for a Luxembourg company?
A company must file annual accounts, pay corporate taxes, register for VAT (if applicable), and comply with local regulations, including accounting and audit obligations.
1. What is an SARL-S, and who is it for?
The SARL-S (Société à Responsabilité Limitée Simplifiée) is a cost-effective and fast-to-register company designed for entrepreneurs and small businesses. It requires only €1 of share capital and has fewer administrative burdens.
2. How quickly can I register an SARL-S?
An SARL-S can be incorporated within 48 hours, provided all documents are in order when the business licence is already ready.
3. What are the limitations of an SARL-S?
Only available for natural persons (not corporations).
The activity must require a business licence (if applicable).
The shareholding is limited to 100 partners.
4. Can an SARL-S be converted into a full SARL?
Yes, once your business grows, you can convert it into a standard SARL by increasing the share capital to €12,000 and modifying the company statutes.
1. Do I need a business licence to start a company in Luxembourg?
Yes, if your activity is commercial, artisanal, industrial, or involves regulated professions, you must apply for a business licence (autorisation d’établissement) from the Ministry of Economy.
2. What are the requirements to obtain a business licence?
Professional qualifications (for certain activities).
Good repute (no criminal record).
A physical business address in Luxembourg.
3. How long does it take to get a business licence?
It generally takes 2 to 4 weeks, depending on the complexity of your business activity and whether all documents are correctly submitted.
4. Can I start my business before obtaining the licence?
No, you must wait for the business licence approval before starting operations. Operating without one can lead to fines or closure.
1. Is it mandatory to have a Luxembourg business bank account?
Yes, a Luxembourg company must have a local bank account to deposit the share capital and conduct transactions.
2. What documents are required to open a business bank account?
Company incorporation documents (statutes, RCS registration).
Business licence (if required).
ID & proof of address of shareholders and directors.
Business plan (sometimes requested for compliance).
3. Can a non-resident open a Luxembourg business bank account?
Yes, but due to strict compliance and KYC regulations, non-residents may face additional checks. Some banks require a local director or a strong link to Luxembourg.
4. How long does it take to open a business bank account in Luxembourg?
It typically takes 1 to 4 weeks, depending on the bank’s compliance process. Some fintech banks offer faster solutions.