Luxembourg, with its strong financial reputation and welcoming business environment, is an appealing destination for entrepreneurs worldwide. If you’re a non-resident looking to create a business in Luxembourg, understanding the various legal forms and the process for opening a business bank account is crucial. Damalion introduces you to the popular legal structures and explain how you can easily open a bank account online with the help of Damalion.
Popular Legal forms for non-resident entrepreneurs
- Société à Responsabilité Limitée (SARL)
- Overview: The SARL, or Private Limited Liability Company, is a favorite among small and medium-sized enterprises. It’s ideal for entrepreneurs who want a straightforward setup with limited personal liability.
- Capital Requirements: To start a SARL, you’ll need a minimum share capital of €12,000, which must be fully paid up at registration.
- Liability: This structure protects your personal assets since shareholders are only liable for the company’s debts up to the amount of their share capital.
- Management: You can manage the SARL with one or more appointed managers, making it flexible and efficient.
- Société Anonyme (SA)
- Overview: The SA, or Public Limited Company, is designed for larger businesses and those considering public investment. It’s a great choice if you’re planning for significant expansion or public listing.
- Capital Requirements: An SA requires a minimum share capital of €30,000, with at least 25% of this amount paid up before the company is registered.
- Liability: Like the SARL, shareholders’ personal assets are protected as they are only liable up to their investment in the company.
- Management: This structure offers flexibility with management options, including a Board of Directors or a Management Board.
- Société à Responsabilité Limitée Simplifiée (SARL-S)
- Overview: The SARL-S, or Simplified Private Limited Liability Company, is tailored for startups and small businesses, making it a cost-effective and simplified option.
- Capital Requirements: You can start a SARL-S in Luxembourg with a minimal capital of just €1, which makes it very accessible for entrepreneurs with limited initial funds.
- Liability: The SARL-S provides the same limited liability protection as the SARL, keeping your personal assets secure.
- Management: Its management structure is straightforward, similar to the SARL, allowing for ease of operation.
Requirements for opening a business bank account
Opening a business bank account in Luxembourg is a straightforward process, especially with the convenience of online services provided by platforms like Damalion. Here’s what you typically need:
- Company Documentation: You’ll need to provide key documents such as the Articles of Association, proof of company registration, and information about your business structure.
- Identification: Non-residents must submit valid identification, such as a passport, along with proof of address. This helps verify your identity and comply with regulatory requirements.
- Proof of Address: Both your company’s and your personal proof of address documents are needed to ensure compliance with anti-money laundering laws.
With the support of platforms like Damalion, non-residents can navigate these requirements smoothly and set up their business accounts online. This makes Luxembourg an accessible and attractive option for entrepreneurs looking to expand their business horizons.
Luxembourg’s welcoming business climate and efficient banking services make it a great choice for international entrepreneurs. Whether you choose a SARL, SA, or SARL-S, setting up your business and opening a bank account here can be a seamless and rewarding experience with the right support.
Damalion has been supporting various companies to register their businesses and corporations in Luxembourg with business bank accounts. Please contact your Damalion expert now.
Opening a business bank account in Luxembourg — what banks look for, documents to prepare, online onboarding, payment flows, sector and country checks, costs and timing.
For SARL, SARL-S, SA, SPV and operating companies • Damalion helps scope needs, prepare a clear profile, and coordinate with providers. Final acceptance is decided by each bank.
Last updated:What helps bank onboarding go faster in Luxembourg?
Pick the right account type (operational or treasury), explain the purpose of the account in plain terms, and present a consistent picture of expected activity: amounts, currencies, countries and counterparties. A complete file and simple story reduce follow-ups.
Documents most banks ask for
- Valid passport/ID of directors, beneficial owners and signatories; recent proof of address.
- Tax residency details (TIN; FATCA/CRS status where relevant).
- Source of funds and source of wealth proofs (invoices, contracts, financial statements, sale agreements, dividends, capital gains, inheritance), traceable to origin.
- Company papers: certificate of incorporation, articles, RCS extract, UBO chart, signatory powers.
- Business description: activity, licences or permits if required, main suppliers/clients, expected monthly volumes and currencies.
- Translations or apostilles if requested by the bank.
Account types at a glance
| Topic | Operational account | Treasury / escrow / custody |
|---|---|---|
| Main use | Payables, receivables, payroll, day-to-day operations | Holding funds, capital deposit, asset movements |
| Documents | ID, address, tax, company papers, activity overview | As left + specific purpose (e.g., share capital, custody) |
| Minimums | Ongoing fees; genuine local or cross-border activity | May require higher balances depending on bank policy |
| Timing | Fast with a clear file and responsive contact | Depends on purpose and controls |
How the process usually unfolds
- Confirm needs and bank fit. Choose a bank and pricing tier that match your use case.
- Prepare the file. ID, address, tax, company papers, ownership chart, signatory matrix.
- Describe payment flows. Amounts, currencies, countries, counterparties over 12 months.
- Compliance checks. Answer KYC requests promptly and keep one clear document trail.
- Account goes live. IBAN issued, first transfers tested, user rights and limits set.
Costs and timing
- Setup, monthly account fees, domestic/SEPA/SWIFT payment fees; card or platform fees where applicable.
- Capital deposit services are available for SARL/SA incorporation; fees vary by bank.
- From complete file to active account: a few days to a few weeks, depending on activity and risk profile.
Related reading
Frequently asked questions
1) Can a non-resident company open a Luxembourg business account?
Yes, subject to bank policy, KYC/AML checks and risk assessment. Each bank applies its own acceptance criteria under Luxembourg and EU law.
2) Which corporate documents are generally mandatory?
Certificate of incorporation, articles, RCS extract, beneficial ownership chart, proof of registered office, and a list of directors and authorised signatories.
3) What personal identification is required?
Valid government ID (passport/ID card) and recent proof of address for directors, UBOs (as per thresholds) and account signatories.
4) How are beneficial owners identified?
By shareholding and control analysis. Banks verify natural persons who ultimately own or control the company, using the RBE (beneficial owner register) and client documentation.
5) What is reviewed under AML/CFT?
Source of funds and source of wealth, transaction purpose, sector and country exposure, sanctions, PEP status, and adverse media, in line with CSSF and EU rules.
6) Are online/remote onboardings possible?
Many banks support remote onboarding with enhanced ID verification. Some may still require a video-call or an in-person meeting before activation.
7) Are capital deposit letters available for incorporation?
Yes. Banks may issue capital deposit confirmations for SARL, SARL-S and SA, subject to standard checks. Release follows notarial incorporation and registry filings.
8) Do regulated activities need extra evidence?
Yes. Activities requiring licences (e.g., payment services, investment services, crypto-asset services) must present the relevant authorisation or registration when applicable.
9) How are FATCA and CRS handled?
Clients complete tax self-certifications. Banks report where required under FATCA/CRS based on residency and controlling person status.
10) What if directors or UBOs are PEPs?
Enhanced due diligence applies. The bank may request additional documents and senior management approval, and can refuse the relationship if risks are not acceptable.
11) Can a bank decline without detailed reasons?
Yes. Banks may refuse or terminate a relationship under their contractual rights and risk policies, consistent with applicable law.
12) Which sectors face closer review?
Cash-intensive models, high-risk jurisdictions, complex cross-border flows, and businesses subject to frequent fraud or sanctions exposure.
13) Are translations or apostilles requested?
Where documents are not in a language accepted by the bank, certified translations may be required. Apostilles may apply for foreign public documents.
14) What information about payments is expected?
A 12-month view of typical incoming and outgoing amounts, currencies, countries, counterparties, and the purpose of funds.
15) How are sanctions checks applied?
Names, countries and counterparties are screened against EU and UN lists and other lists used by the bank. Matches may block or delay onboarding or payments.
16) What are usual timelines?
After a complete submission, decisions are typically reached within days to weeks, depending on responsiveness and risk profile.
17) Can crypto-related companies open accounts?
Possible where compliant with licensing or registration requirements and with clear flows, risk controls and audited records. Acceptance varies by bank.
18) How are data and records handled?
Personal data is processed for KYC/AML and contractual purposes under EU GDPR and Luxembourg law. Retention follows legal and regulatory requirements.
19) What happens if the account is dormant?
The bank may apply inactivity fees or take steps required by law and contract. Clients should maintain minimal activity and update information when requested.
20) Is multi-currency banking available?
Yes. Multi-currency accounts and international transfers (SEPA/SWIFT) are common, subject to pricing and cut-off times.
