How to Open a Company in Luxembourg in 2025 Guide for Entrepreneurs and Investors
Opening a company in Luxembourg offers immediate access to one of Europe’s most credible and investor-friendly jurisdictions. Known for its political stability, AAA-rated economy, multilingual workforce, and tax-efficient frameworks, Luxembourg is the ideal location for entrepreneurs, remote founders, and international investors looking to establish a European business presence. Whether you’re launching a startup, opening a holding company, or creating a financial platform, here’s what you need to know to open a company in Luxembourg in 2025.
Why Open a Company in Luxembourg?
-100% Foreign Ownership Allowed You don’t need to be a Luxembourg resident to open a company and you can do it remotely.
-Strategic Location in the EU Luxembourg offers seamless access to all 27 EU member states, free movement of capital, and regulatory passporting.
-Multilingual Legal System Most procedures are available in English, French, or German, making setup accessible to international founders.
-Strong Reputation Luxembourg companies enjoy high credibility with banks, institutions, and investors across Europe.
Step-by-Step: How to Open a Company in Luxembourg
1. Choose a Legal Form
| Company Type | Capital | Best For |
| SARL-S | €1 | Freelancers, consultants |
| SARL | €12,000 | SMEs, operational companies |
| SA | €30,000 | Large corporations, IPO-ready firms |
| SCSp | None | Investment funds |
| SOPARFI | €12k–30k | Holdings, group financing |
| SPF | N/A (fixed tax) | Private wealth management |
2. Reserve a Company Name Verify and reserve your company name via LBR.lu.
3. Open a Bank Account & Deposit Capital The bank will issue a certificate of capital deposit, required before notarization.
4. Draft Articles of Association A legal expert prepares your company’s governing document based on the selected structure and shareholder setup.
5. Notarize Incorporation Deed SARL, SA, and SCSp require notarization. SARL-S may be formed without a notary under simplified conditions.
6. Register with the RCS (Registre de Commerce et des Sociétés) This is Luxembourg’s official commercial register once registered, your company is legally valid.
7. Register for Taxes File for corporate tax and VAT with the Administration des Contributions Directes (ACD) and AED.
Timeline to Open a Company
| Task | Estimated Time |
| Document preparation | 1–3 business days |
| Bank account setup | 1–2 business days |
| Notarization & RCS filing | 2–5 business days |
| Tax/VAT registration | 3–7 business days |
| Total | 5–10 working days |
Required Documents
- Valid ID/passport of shareholders
- Proof of business address in Luxembourg (can use domiciliation)
- Articles of association
- Capital deposit certificate
- Business activity description (if regulated)
Typical Setup Costs (excluding capital)
| Item | EUR |
| Legal advisory & filing | €800 – €1,500 |
| Notary (if applicable) | €0 – €1,200 |
| RCS registration | €75 – €100 |
| Domiciliation (monthly) | €50 – €150 |
| Total setup estimate | €900 – €3,000 |
Taxation Overview (2025)
| Tax | Rate |
| Corporate Tax | 15% to 24.94% (combined) |
| VAT | 17% (standard) |
| Dividend Withholding | 15% (0% possible under treaties) |
| Net Wealth Tax | Applicable for commercial companies |
Can You Open a Company Remotely?
✅ Yes. Foreign nationals can:
- Use a Power of Attorney
- Open bank accounts via video KYC
- Incorporate without physical presence via trusted advisors
Finacial Services Business advisor conclusion
Opening a company in Luxembourg is a strategic, tax-efficient way to launch or expand your business in Europe.
Whether you're a startup founder, investor, or fund manager, Luxembourg offers a powerful combination of credibility, speed, and stability.
We offer turnkey company formation services from legal setup to tax registration tailored for international founders.
Start your Luxembourg company in under 10 days.