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Luxembourg company formation

There are several different legal forms you can use for your business in Luxembourg, ranging from simple sole trader or freelancer to a limited company that sells shares to the public. Deciding which one is most suitable will be one of your first steps.

Any person wishing to set up a company to do business in Luxembourg must have the authorisations/approvals required to carry out the activity.

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Common Company Legal Structure

Private Limited company (Société à responsabilité limitée – SARL)

  • Founding capital 12,000.-€ subscribed and paid out

  • One or several sole / business manager or a board formed by a minimum of 3 and maximum of 12 members

  • An SARL can have between 2 and 100 shareholders

  • Additionally, Luxembourg also offers the simplified liability company (Société à responsabilité limitée simplifiée – SARL-S). This limited company is easier to set up – for example, the minimum shareholder capital is only €1, and the documents of incorporation don’t need to be notarized.

Public Limited Liability Company (Société anonyme – SA)

  • Founding capital  30,000.-€ subscribed (at least 25% paid)

  • One or several sole / joint directors with a maximum of 3 members or a board of directors with at least 3 members and no maximum.

  • The duration of the SA's existence must be set by its articles of association

  • Access the financial markets (capital markets)

Branch Office Registration in Luxembourg

Within the spectrum of legal entities available to operate or invest in Luxembourg, a branch office is a valid option to access the market with full guarantees. Mixed up often for subsidiary companies, branches are not a separated legal entity to its parent company but an extension to it.

Differences between a branch office and a subsidiary company can be seen below:

  • No require founding capital

  • No legal capacity in its own

  • No local management, decisions are taken by parent company.

  • The parent company is liable for all actions or omissions of its branch

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​Branches have similar incorporation requirements to regular private companies​

​Yan Incorporation's 4 easy steps of registration

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Open a business account quickly and easily online, designed specifically for foreigners looking to establish presence in Luxembourg. 

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Contact us today to receive a quotation for our company formation in Luxembourg. We are here to assist you every step of the way.

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