Opening a limited liability company in Luxembourg implies registering the business as a private or public entity. Our law firm in Luxembourg can assist with the registration of any of them.
| Quick Facts | |
|---|---|
| Applicable legislation | Luxembourg Company Act |
|
Best used for |
– commercial, – trading, – manufacturing, – online sales, etc. |
|
Types of limited companies in Luxembourg |
– simplified private companies, – private limited liability companies, – public companies |
| Minimum share capital |
– EUR 12,000 for private companies, – EUR 30,000 for public companies |
| Minimum number of shareholders |
At least two shareholders are required to set up a private limited liability company. |
| Minimum number of directors |
1 |
| Local manager required (YES/NO) |
No, the director must not be a resident. |
| Local legal address required (YES/NO) |
Yes |
| Local bank account (YES/NO) |
Yes, a Luxembourg bank account is required for Luxembourg companies. |
| Local address requirement (YES/NO) | Yes, a local address is also needed. |
| Visit required for registration (YES/NO) |
No, remote registration is also available. |
| Corporate tax rate |
14% to 16%, depending on the profit of the company + a solidarity surcharge of 7% |
| Approx. timeframe for incorporation |
Approx. one month |
| Advantages |
– simple registration requirements, – full foreign ownership available, – possibility to operate in multiple industries. |
| Support in opening a private limited liability company in Luxembourg (YES/NO) | Yes, our lawyers in Luxembourg can assist with the setup of a limited liability company. |
What are the main features of the private limited liability company in Luxembourg (SARL)?
The private limited liability company (SARL):
- is a separate legal entity from its shareholders, meaning the owners are liable for the obligations of the company to the extent of their contribution;
- can have at least 2 shareholders and a maximum of 100;
- can have both natural persons and corporate shareholders;
- can be used to create subsidiaries in Luxembourg (the corporate shareholding structure option);
- can be used in various sectors of activities, with a few exceptions;
- can be fully owned by foreign investors.
It is also possible to set up a simplified limited liability company in Luxembourg, the SARL-S, which needs a minimum capital of 1 euro.
IMPORTANT! It is also possible to establish a single-shareholder private limited liability company. You can refer to our Luxembourg lawyers for details about this form.
What is the minimum share capital for a private company in Luxembourg?
EUR 12,000. The entire amount must be deposited upon incorporation.
What are the management requirements for a SARL in Luxembourg?
The company can have one director who is not required to be a Luxembourg national.
IMPORTANT! In the case of non-EU citizens appointed as directors, Luxembourg immigration rules must be observed. Our lawyers can advise.
What are the steps to open a private limited liability company in Luxembourg in 2026?
- company name reservation;
- Articles of Association drafting (the procedure must be carried out through a public notary);
- documents submission with the Trade Registry;
- bank account opening;
- tax and VAT registration (voluntary VAT registration is available in Luxembourg);
- licensing (subject to industry-specific requirements).
What are the documents required to register a Luxembourg private limited liability company?
- valid ID/passport copy for the shareholder(s) and director(s);
- Articles of Association;
- proof of registered address;
- bank statement indicating the deposit of the share capital;
- trading name reservation form;
- application form.
What are the main uses of a limited liability company in Luxembourg?
- It can be used as an investment vehicle by professional investors who set up investment funds in Luxembourg;
- It can also be used for general activities, such as trading or commercial undertakings in various industries;
- It is one of the best options for those seeking to create holding companies in Luxembourg;
- It is a good option for those who want to start small and medium-sized businesses, and also for those who want to offer various services.
Here is also our video on this type of company:
How are LLCs taxed in Luxembourg?
The following corporate tax rates apply to LLCs in Luxembourg:
- a 15% rate applied to companies with annual net profits below 25,000 euros;
- for incomes between 25,000 euros and 30,000 euros per year, the tax levied is 3,750 euros + 33% on the net income of the difference between 25,000 euros and 30,000 euros;
- a 18% rate is applied to LLCs with annual net incomes above the threshold of 30,000 euros.
A solidarity surcharge of 7% goes to the employment fund. LLCs in Luxembourg are also subject to a municipal tax and a net wealth tax, which are applied to the assets of the company. These rates are 6.75%, respectively, 0.5%.
How long does it take to open a private limited liability company in Luxembourg in 2026?
Approximately one month – one and a half months.
How much does it cost to register a SARL in Luxembourg in 2026?
We have a full incorporation package of EUR 2,500, consisting of:
- initial consultation;
- documents drafting and filing;
- bank account opening support (bank fees not included);
- tax registration;
- company documents delivery.
If you want to open a limited liability company in the Grand Duchy and need assistance, do not hesitate to contact our attorneys in Luxembourg.