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Embarking on the journey of launching a business in Luxembourg requires meticulous planning and understanding of the diverse legal structures available. Let’s review the common company types in Luxembourg, the requisite documentation for registration, the incorporation process, and the multitude of advantages awaiting entrepreneurs in Luxembourg, this dynamic European nation.

Exploring the Spectrum of Company Types in Luxembourg

Private Limited Liability Company (S.à.r.l./Société à Responsabilité Limitée)

Primarily utilized for intercompany restructurings or businesses of moderate size, the S.à r.l. (société à responsabilité limitée) offers flexibility in organizational structure and management. Shareholders enjoy limited liability, with a minimum requirement of one director and one shareholder. The minimum share capital stands at EUR 12,000, payable upfront in various currencies. Share transfer to third parties is legally restricted, and dissolution necessitates adherence to specific conditions.

Public Limited Liability Company (S.A. – Société Anonyme)

The S.A., the second most prevalent business form in Luxembourg, operates within a regulated legal framework. Shareholders benefit from limited liability, with shares being both negotiable and transferable. Establishment requires at least one director and one shareholder, with a minimum subscribed share capital of EUR 31,000. Non-voting shares can be issued under specific conditions, and access to financial markets is facilitated through bond issuance or stock exchange listing.

Société par Actions Simplifiée (SAS)

Introduced recently into the Luxembourg legal system, the SAS mirrors the S.A. in many aspects. It requires a minimum of one partner for establishment and follows similar formalities as the S.A. The capital requirement for a SAS is at least €30,000, and public share issuance is prohibited.

Simplified Limited Liability Company (SARL-S)

For detailed insights into SARL-S, please refer to dedicated resources.

Sole Proprietorship

Catering to individuals operating under their own name, sole proprietorships entail full responsibility for business financing and legal obligations. Sole proprietors must register with the Joint Social Security Centre for social protection.

Essential Documentation for Company Registration

Entrepreneurs venturing into Luxembourg‘s business realm must compile the following documents:

Personal Documents: Identity proofs, proof of residence, criminal record extracts, notarial certificates of personal non-bankruptcy, and relevant educational diplomas.
Corporate Documents: Articles of Association, initial capital details, shareholder and director information, and bank certificates of capital deposit.

Main steps to launch your company in Luxembourg

Establishing a company in Luxembourg involves the following key steps:

  • Selection of Company Name: Choose a unique and appropriate name for your business.
  • Activity Information: Provide comprehensive details regarding your business activities.
  • Business Bank Account Opening: Establish a dedicated bank account for your company.
  • Capital Contribution: Deposit the authorized capital into the designated account.
  • Notarization of Documents: Ensure all relevant documents are properly notarized.
  • Commercial Register Entry: Register your company with the Commercial Register.
  • Tax Identification Number Assignment: Obtain a Tax Identification Number for your business.
  • While Luxembourg boasts efficient bureaucracy, it’s crucial to note that authorization processing times typically span a few weeks due to the nation’s compact size.

Advantages of Establishing Your Business in Luxembourg

Economic Stability: Luxembourg maintains stability amidst global economic fluctuations.
Pro-Business Environment: The nation offers a conducive environment for business growth, with minimal foreign exchange controls and a thriving investment landscape.
Financial Hub: With a robust banking sector and flourishing investment fund industry, Luxembourg serves as a global finance hub.
Favorable Tax Regime: Entrepreneurs benefit from favorable tax and legal frameworks within the European Union.

Why Choose Damalion for Company Formation in Luxembourg?

Navigating the nuances of the Luxembourg market demands expertise and local knowledge. With Damalion’s support, entrepreneurs gain access to comprehensive information and guidance essential for business success in Luxembourg.

For seamless company formation in Luxembourg, contact your Damalion expert today and unlock the opportunities awaiting your venture.