Why Start a Business in Luxembourg
Luxembourg has been one of the most attractive jurisdictions for entrepreneurs, investors and international groups for many years. Starting a business in Luxembourg is often chosen by companies looking for a combination of legal stability, access to the EU market and flexible corporate tools.
Benefits of Company Formation in Luxembourg for Entrepreneurs
Key advantages include:
Luxembourg’s membership of the European Union and full access to the EU internal market
The ability to use Luxembourg as a base for international operations
A wide range of legal forms for different business models
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The jurisdiction’s high reputation in terms of compliance and corporate governance
Luxembourg as an EU Business and Financial Hub
Luxembourg is one of the main financial centers in Europe. It is home to banks, investment funds, fintech companies and holding structures of international groups.
Tax Advantages, Investor Protections & Regulatory Stability
There is a clear tax system and special regimes for having a holding and investment company in Luxembourg. At the same time, Luxembourg strictly adheres to EU standards and international requirements for transparency and AML/KYC, which increases trust from partners and banks.
Types of Companies in Luxembourg
Before setting up a company in Luxembourg, it is essential to select the appropriate legal form. Luxembourg law offers several primary options.
Sàrl (Private Limited) – Most Popular Form for SMEs
Sàrl (Société à responsabilité limitée) is the most common form of company in Luxembourg. It is used to conduct full-fledged business activities, including the provision of services, trade or the implementation of startup projects.
Requirements for Company Formation in Luxembourg
Luxembourg company formation involves fulfilling a number of formal requirements.
Minimum Capital Requirements for Sàrl, SARL-S, SA
Minimum Capital Requirements for Sàrl, SARL-S, SA
The amount of authorized capital depends on the chosen legal form (Sàrl, SARL-S, or SA). The capital is recorded in the constituent documents and, as a rule, is paid into the company's bank account.
Registered Office, Notarial Requirements & Articles of Association
To register a company in Luxembourg, a registered address in the country is required. The constituent documents are drawn up by a notary and are subject to mandatory registration.
How to Open a Company in Luxembourg
Step-by-Step Company Formation Process
Typically, the process includes:
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Choosing a legal form and name;
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Preparing constituent documents;
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Opening an account for capital contributions;
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Notarization;
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Registration in the Trade and Companies Register.
Notary Appointment & RCS Registration
After notarizing the constituent documents, the notary submits them to the Registre de Commerce et des Sociétés (RCS). From the moment the company is registered in the RCS, it acquires the status of a legal entity.
Business License Requirements (Autorisation d’établissement)
To run some types of commercial and professional activities in Luxembourg, it is necessary to obtain a business license issued by the Ministry of Economy. Without such a license, the company is not entitled to start the relevant business activity.
Luxembourg Business Register (RCS)
How the Luxembourg
Trade & Companies Register Works
The Registre de Commerce et des Sociétés (RCS) is the official public register of all companies registered in Luxembourg. This register publishes the company names, registration number, legal form, date of establishment, registered address and other details.
Filing Requirements & Mandatory Corporate Documents
Companies are required to notify the RCS of any changes to their corporate structure, including directors, registered address, share capital and articles of association.
Banking & Finance Setup
How to Open a Business Bank Account in Luxembourg
A bank account is usually required for contributing authorized capital and operating activities. Without a corporate account, a company cannot fully conduct settlements with counterparties, employees and tax authorities.
Banks, FinTech & EMI Options for Foreign Founders
Foreign entrepreneurs can use both classic banks and alternative financial institutions. In practice, they often combine a traditional bank for contributing authorized capital and storing funds and EMI/Fintech solutions for international payments and multi-currency transactions.
KYC/AML Requirements & Expected Timelines
Customer verification procedures are strict and may affect the timing of opening an account. The duration of the process depends on the ownership structure, the country of residence of the founders and the nature of the business.
Requirements for Non-EU Founders
Both EU residents and third-country nationals can start a business in Luxembourg. For third-country nationals, additional requirements may arise in cases where the founder plans to reside in Luxembourg or manage the company directly from the country, in particular regarding a residence permit or confirmation of economic presence.
Open a Company in Luxembourg Remotely
In many cases, Luxembourg business registration is possible remotely with the participation of notaries and professional representatives, without the mandatory personal presence of the founder. It should be noted that certain stages after registration (in particular, opening a bank account) may require additional identification or participation of the founder.
Company Formation in Luxembourg for Foreigners
Accounting & Annual Reporting Obligations
After registering a company in Luxembourg, there is an obligation to keep accounting records in accordance with national standards and to submit annual financial statements within the established deadlines.
Ultimate Beneficial Owner (UBO) Register
Information on the ultimate beneficial owners of a company is subject to mandatory disclosure in the Register of Beneficial Owners (Registre des bénéficiaires effectifs). The company is obliged to keep this data up-to-date and to report any changes in the ownership or control structure promptly.
Post-Incorporation Requirements
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