The holding company, a legal entity created for the purpose of owning shares or other assets, is a very popular business form in Luxembourg as it offers many advantages to its owners. Foreign investors who want to establish holding companies in Luxembourg must follow the same procedures as for setting up other types of companies. Below, our lawyers in Luxembourg explain how to open a holding company in the Grand Duchy in 2026.
| Quick Facts | |
|---|---|
| Legal entities used |
– private limited liability company, – public limited liability company, – tax exempt holding company (SOPARFI), – limited partnership, – co-operative |
|
Incorporation method |
Usual registration with the Luxembourg Companies Register |
|
Incorporation time |
Approx. 3 weeks |
| Types of assets owned by the holding |
– shares, – real estate, – intellectual property etc. |
| Requirment for local bank account (Yes/No) |
Yes |
| Residency requirements for the founder(s) |
No |
| Advantages |
– tax exemptions, – easy to register, – good reputation of Luxembourg, – access to double tax treaties |
| Precautions |
Special conditions under the EU Parent-Subsidiary Directive |
| Shareholding structure |
At least one shareholder |
| Minimum capital |
– EUR12,500 for private companies, – EUR30,000 for public companies |
| Taxation |
– 15% on income below EUR175,000, – EUR26,000 for the first EUR 175,000 plus 31% on income ranging from EUR 175,001 and EUR200,000, – 17% on income above EUR200,000 |
| Control |
Full foreign control of the parent company |
| Registered agent requirements |
No local agent is required, however, such services are available |
| Accounting and reporting |
Audited financial statements must be filed no later than 6 months from the end of the financial year |
| Number of double taxation treaties | Approx. 80 |
| Applicable legislation | Commercial Companies Law |
|
Availability of various types of holding companies (YES/NO) |
Yes |
|
Types of Luxembourg holding companies |
– financial, – operational, – management, – organizational |
| Documents required for registration |
– Articles of Association, – details of the shareholders, – details of the director(s), – proof of registered address, – bank statement regarding the issuance of the share capital |
| Local director required (YES/NO) |
No, there is no need to appoint a resident director. |
| Management status (natural person/corporate director) |
Both natural persons and corporations are accepted. |
| Uses of a holding company |
– share ownership, – intellectual property ownership, – acquisition of various assets, – controlling other companies |
| Access to the EU Parent-Subsidiary Regime (YES/NO) |
Yes, as Luxembourg is a member of the European Union. |
| Types of shares it can issue |
Registered and bearer shares can be issued. |
| Requirement to appoint an auditor (YES/NO) | Yes, a holding company must appoint a statutory auditor. |
| Special authorization requirement (YES/NO) |
Yes, in the case of financial holdings, approval from the Financial Supervisory Commission is required. |
| Access to specialized local workforce (YES/NO) |
Yes, Luxembourg offers access to financial professionals. |
| Possibility to operate in other countries (YES/NO) |
Yes |
| Requirement to travel to open a holding company (YES/NO) |
No, there is no need to travel to Luxembourg to create a holding. |
| Holding company registration support (YES/NO) | Yes, our lawyers in Luxembourg offer such a service. |
What are the steps to open a holding company in Luxembourg?
Here is how the registration steps for a Luxembourg company unfold:
- selection and reservation of the company name;
- determination of the structure used to register the company;
- preparation of the statutory documents – the Articles of Association;
- the opening of the bank account and deposit of the share capital, in accordance with the chosen structure;
- the meeting with the public notary to complete the preparation of the documents;
- the submission of the documents to the Companies Register.
After the paperwork is verified, the Registration Certificate is issued, and the tax registration process can be initiated.
What are the requirements to register a holding company in Luxembourg?
When choosing to open a holding company in Luxembourg in 2026, the following requirements must be complied with:
- the company must have a trading name, which must be reserved with the Trade Register;
- various documents must be prepared, among which the Articles of Association are essential;
- the company must also have a share capital which must be demonstrated through a bank statement;
- the company must have at least one director, however, specific provisions apply;
- the holding must also have a legal address in Luxembourg prior to incorporation.
All the documents for the creation of a holding company must be filed with the Trade Register. These can be drafted and submitted by our lawyers in Luxembourg.
We also invite you to read more about the holding company in the infographic below:
Do I need to travel to Luxembourg to open a holding?
There is no need to move/ travel here in order to open a holding company in the early stages of business registration.
When would I need to come to the country?
Your presence would be required when setting up a company’s bank account.
What legal entities can I use to open a holding in Luxembourg?
A Luxembourg holding company can be registered under one of the following entities:
- A private limited liability company, shortly known as SARL, which is the most popular business form in Luxembourg;
- A public limited liability company, also known as SA, which is suitable for large businesses;
- A partnership limited by shares, also known as SCA, which can be set up by at least two members;
- A co-operative, shortly known as SC, which falls under the prospect of the Luxembourg Civil Code.
Most of the times, Luxembourg holdings are registered as SARLs or SAs, which imply minimum share capital requirements of EUR12,500 in the case of the SARL, respectively EUR30,000 in the case of the SA.
What is the best structure for a holding company in Luxembourg?
Our lawyers in Luxembourg recommend the SOPARFI, which is created for the management of financial investments and shares. It can be structured as a stock company (which offers beneficial ownership privacy) or a limited liability company (which is suitable for small operations), depending on its size and your needs.
What are the documents I need to supply if I am a foreigner?
You will need a valid passport (and a visa, if you are a non-EU citizen) and proof of address.
Are there any other requirements that apply to foreign shareholders?
Yes, in case you don’t have a Luxembourg identification number, you need to apply for one. We can assist with the procedure and help you speed things up.
What activities can a holding company in Luxembourg undertake?
The following types of holding companies can be created in Luxembourg:
- operative,
- financial,
- management,
- organizational.
Out of all of these, the financial holding company is the most popular.
What are some common uses for a holding company in Luxembourg?
Luxembourg holding companies can be used for various purposes, among which the most common are:
- for owning shares in one or more companies;
- for owning intellectual property rights;
- for acquiring an inheritance;
- for e-commerce purposes.
Our law firm in Luxembourg can help investors who want to register a holding company here.
How long does it take to register a holding company in Luxembourg in 2026?
According to our specialists, it can take approximately 6 weeks to incorporate it.
Can I start the registration procedure remotely?
Yes. As a matter of fact, we specialize in holding company incorporation in Luxembourg and can represent you before the public notary and Trade Register with a power of attorney.
How is a holding company taxed in Luxembourg?
The levies a Luxembourg holding company is subject to are:
- the corporate tax of 15% on income below EUR175,000;
- a corporate tax of EUR26,000 for the first EUR175,000 plus 31% on income ranging from EUR175,001 to EUR200,000;
- a corporate income tax rate of 17% on income above EUR200,000;
- the contribution to the unemployment fund – 4%,
- the share transcription tax – 0.5%,
- the share registration duty – 0.6%.
Can a holding benefit from double taxation reliefs?
Yes, the holding company can benefit from Luxembourg’s double tax treaties, which will significantly reduce the tax burden.
How much does it cost to open a holding company in Luxembourg?
If you choose our services, the registration package is EUR2,500. The cost covers:
- documents drafting;
- bank account opening guidance (we can also recommend some of the banks we work with);
- Trade Register incorporation.
In addition to these, we can also assist in obtaining the national identification number for EUR150, which is a one-time fee.
We invite you to watch our video below about holding companies in Luxembourg:
Why open a holding company in Luxembourg?
There are many reasons why local and foreign investors can choose Luxembourg for creation of a holding company. Apart from having very well-established regulations which will increase businesspersons’ confidence, the Grand Duchy also offers other advantages, among which:
- tax advantages if the holding company qualifies for the participation exemption regime,
- access to a large network of double taxation agreements,
- easy incorporation and corporate bank account opening procedures compared to other European jurisdictions,
- professional workforce in the financial field, which is the country’s most important economic sector.
When adding that Luxembourg is an European Union member state and operating from here in other member countries is quite simple, it becomes even more appealing to create a holding company here.
If you are interested in setting up a holding company in Luxembourg in 2026, you can contact our local lawyers for assistance through the registration process.