Company Registration in Luxembourg – An Overview

Aspect Details
Fees The fees for company formation in Luxembourg start from 3000 USD
Timeline Luxembourg business setup takes around 2 to 3 weeks
Registration Benefits Benefits of company registration in Luxembourg include the following:
  • Political Stability
  • Thriving Economic
  • Social Advantage
  • Innovation and Technology
  • Robust Legal Framework
  • Tax-Friendly Policies
  • Safety and Security
  • Environmental Commitment
Types of Company Types of company formation in Luxembourg include the following:
  • Private Limited Liability Company (Société à responsabilité limitée or SARL)
  • Public Limited Company (Société Anonyme or SA)
  • Special Limited Partnership (Société en Commandite Spéciale or SCSp)
  • Common Limited Partnership société en commandite simple (SCS)
  • Sole Proprietorship (Entreprise Individuelle)
  • Cooperative Company (Société Cooperative)
Documents Required Documents required for company formation in Luxembourg include the following:
  • Passport Copies of the Directors and Shareholders
  • Address Proof of the Directors and Shareholders
  • Business Plan
  • Articles of Association (AoA)
  • Memorandum of Association (MoA)
  • Specimen Signatures of the Founding Members
  • Proposed Business Name
Top Businesses for Foreign Entrepreneurs Some of the top businesses for foreign entrepreneurs for Luxembourg company formation include the following:
  • Solar Panel Installation
  • Fintech Payment Solutions
  • Cybersecurity Solutions
  • Warehousing & Distribution
  • Space Mining Exploration
Corporate Income Tax for Resident and Non-resident Companies in Luxembourg
  • 15 % (Taxable Income less than EUR 175,000)
  • 17 % (where the taxable income more than EUR 200,000)
How can we help you?
  • Helping select the right company structure
  • Paperwork preparation assistance
  • End-to-end registration support
  • Pre-registration guidance
  • Post-registration compliance management support

Luxembourg Business Setup can be a Reality with Enterslice

Be a part of Europe's fastest-growing economies after a successful Luxembourg business setup.

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Understanding Company Formation in Luxembourg

Over the last few years, Luxembourg has positioned itself as one of the most promising business destinations in Europe. As a founding member of the European Union, it offers countless opportunities to global entrepreneurs and investors seeking company formation in Luxembourg. Its thriving economy is set to witness further growth and touch the $96.99 billion mark in 2025.

If you're an entrepreneur planning to explore Luxembourg, now is the time to join its booming economy with company registration in Luxembourg. Company formation in Luxembourg gives businesses the strategic location advantage to access various markets, including the vast EU consumer market. Tax incentives, business-friendly policies, and a transparent regulatory framework are some lucrative factors that drive entrepreneurs to invest in Luxembourg. Talk to consultants at Enterslice now for an effortless Luxembourg business setup.

Lucrative Tax Incentives

Investor-friendly Environment

Multilingual Talent Pool

Access to a Vast EU Consumer Market

Political stability

Hub for Digital Infrastructure

Business Structures for Company Incorporation in Luxembourg

Different company structures are available in Luxembourg, and global entrepreneurs can choose the type of business structures for company incorporation in Luxembourg that best suits their business needs. Each type of structure for company formation in Luxembourg offers unique personal liability protection, tax incentives, ownership rights, and operational flexibility.

Private Limited Liability Company

Private Limited Liability Company (Société à responsabilité limitée or S.à r.l.)

Société à responsabilité limitée or S.à r.l. is a popular type of company formation in Luxembourg with global entrepreneurs. This company type blends the features of a capital company and a partnership and safeguards personal assets under liability protection even in case of a dissolution. It requires a minimum of 1 director, 1 shareholder, and a minimum share capital of €12,000 (US$14,500) to form société à responsabilité limitée. However, the company can neither be listed on the stock exchange nor can the shares be transferred freely.

Special Limited Partnership

Special Limited Partnership (Société en Commandite Spéciale or SCSp)

Company registration in Luxembourg as société en commandite spéciale or SCSp is similar to a limited partnership. It offers liberty, legal validation and operational flexibility. This partnership comprises general partners and limited partners. While general partners have to bear unlimited business liability, the liability of the limited partners is restricted to the amount contributed to the business. SCSp requires at least two individuals to form, and no minimum paid-up capital restriction exists. However, it is not recognized as a separate legal.

Common Limited Partnership

Common Limited Partnership Société En Commandite Simple (SCS)

It is a common limited partnership for company registration in Luxembourg. At least two partners are required to run this form of business smoothly. The first one is a general partner while the second one is a limited partner. The nature of their liability is the line of differentiation between both partners. It’s a commercial company.

Public Limited Company

Public Limited Company (Société Anonyme or S.A)

Société anonyme, or S.A. is another type of Luxembourg business setup that offers liability protection and access to capital. This structure is ideal for large companies and allows free trading and transfer of shares. It requires a minimum of 1 director, 1 shareholder and capital of €30,000 to register a société anonyme. The minimum paid-up capital requirement is 25%. Shareholders benefit from limited liability protection and don't have to worry even in case of a dissolution. However, S.A. may be subjected to regulatory oversight if it crosses certain thresholds.

Sole Proprietorship

Sole Proprietorship (Entreprise Individuelle)

A sole proprietorship known as entreprise individuelle is a structure to register offshore company Luxembourg. It is one of the simplest forms of company registration in Luxembourg, enabling a single owner to manage and administer the business. However, it does not recognize the owner and business as a separate entity as the proprietor is responsible for business debts, liabilities and obligations in case of a dissolution. Unlike other forms, entreprise individuelle does not enjoy perpetual existence and must report their business income as personal income. Sole proprietorship mandates obtaining industry-specific certifications, licenses and permits. While there is no minimum capital requirement, entreprise individuelle must maintain transparent accounts and file returns if the annual turnover exceeds €100,000 (US$121,000).

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Cooperative Company (Société Cooperative)

A cooperative company, known as société cooperative, is a type of Luxembourg company incorporation. This type of company facilitates business operation as a commercial company, ensuring features of variable capital and number of partners, and non-transferability of shares. Partners in this business are not safeguarded by limited liability but can share the liability jointly. It requires at least 2 individuals to form a cooperative company, and there is no minimum paid-up capital requirement. However, it must appoint at least 1 representative to manage the business and 1 auditor to maintain the books.

Procedure for Company Registration in Luxembourg

Company registration in Luxembourg follows a stepwise procedure, which helps the business understand the need to follow the process. It also allows businesses the time to comprehend the local laws and regulations required to register Luxembourg company and ensure smooth operations. The stepwise procedure for company formation in Luxembourg includes the following:

Choose a Suitable Corporate Entity

The process of company formation in India starts with obtaining the Director Identification Number (DIN) and the Digital Signature Certificate (DSC) for the company's promoters or directors.

Reserve the Company Name

Luxembourg company formation requires reserving a unique business name, which Luxembourg's Trade and Companies Register must approve to confirm distinctiveness.

Prepare Supporting Documents

Preparing and collecting the documents required for a Luxembourg business setup, i.e., managed by Luxembourg Business Registers (LBR), including Articles of Association and detailed business plans, is a must. The paperwork must also be translated into Luxembourgish, German, or French as per the requirement.

File for Company Registration in Luxembourg

Filing incorporation documents with the Trade and Companies Register (RCS) is the next step to register offshore company Luxembourg. Once approved, the Certificate of Incorporation is issued, validating the legal presence of the business there.

Open a Corporate Bank Account

Once the process to register Luxembourg business is complete, the next step is to open a corporate bank account to legally facilitate banking and other financial transactions.

Timeline for Luxembourg Company Registration

The process for Luxembourg company registration usually takes about 2 to 3 weeks to complete, and the timeline is given below:

Choose Corporate Entity - 1 to 3 Working Days

Selecting a suitable corporate structure that aligns with business goals and objectives takes 1 to 3 working days.

Reserve Company Name - 1 Week

It can take up to one week to reserve a unique business name and get it approved with the Trade and Companies Register.

Prepare Documentation - 1 Week

Compiling and submitting the required KYC documents, such as Articles of Association, takes up to 1 week.

File for Registration - 3 to 5 Working Days

Submitting the documents to the Trade and Companies Register (RCS) for approval and obtaining a Certificate of Incorporation takes 3 to 5 working days.

Open Corporate Bank Account - 2 to 4 Days

Opening a corporate bank account and receiving internet banking access credentials takes 2 to 4 days.

Documents Required for Company Registration in Luxembourg

Company registration in Luxembourg mandates businesses to submit the following documents to initiate the registration process:

Proposed Business Name

Detailed Business Plan

Articles of Association (AoA)

Memorandum of Association (MoA)

Initial Capital Information

Address Proof - Shareholders & Directors

Passport Copies- Shareholders & Directors

Bank Deposit Certificate

Proof of Registered Address

Anti-Money Laundering Compliance Declaration

Tax Identification Number Application

Professional License

Power of Attorney

What is Luxembourg Trade and Companies Register?

The Luxembourg Trade and Companies Register (RCS) is a public registry or a database of information regarding company registration in Luxembourg. Known as registre de commerce et des sociétés, the RCS is a part of the Luxembourg Corporate Registry. It serves as an official record of companies comprising their legal status, financial details, and management structure.

Entrepreneurs must submit the required documents to register Luxembourg business, which the public can access through RCS. It promotes transparency and encourages companies to meet local regulations and compliance needs. The Luxembourg Commercial Register is pivotal in maintaining the updated records in the database, facilitating investors and stakeholders in evaluating the legitimacy and financial health of businesses in Luxembourg.

Luxembourg Trade and Companies Register
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Benefits of Company Incorporation in Luxembourg

Company incorporation in Luxembourg offers businesses a profitable opportunity to establish their presence there. Global entrepreneurs can leverage factors like a thriving economy, innovation-driven policies, and multilingualism to set up their businesses for profitable returns in Luxembourg. Some aspects that make Luxembourg a prime business destination for Luxembourg company formation include:

luxembourg company registration benefits

Political Stability

Luxembourg company formation is profitable for global entrepreneurs as the country offers unprecedented political stability. Ranked 9th in Transparency International’s 2020 Corruption Perceptions Index, Luxembourg maintains a transparent and corruption-free public sector, facilitating growth for international businesses and investors.

Thriving Economic

Foreign entrepreneurs can register Luxembourg company and become a part of its booming economy, expected to touch $96.99 billion in 2025. Luxembourg was ranked 18th in the 2021 Index of Economic Freedom, reaffirming its favourable economic policies, tax incentives and investor-friendly ecosystem.

Social Advantage

Global entrepreneurs can register a Luxembourg business to leverage its multilingualism for a successful business journey there. As a country with high English mastery, Luxembourg offers entrepreneurs access to skilled local professionals, facilitating their hiring of talented experts to run the business successfully.

Innovation and Technology

Company registration in Luxembourg exposes global entrepreneurs to domestic initiatives such as the Space Resources program. Biotech, ICT, and fintech are some of the most profitable sectors for global entrepreneurs and investors. It is one of the substantial benefits of company registration in Luxembourg.

Robust Legal Framework

Luxembourg's business setup benefits from a robust legal framework comprising a fair, transparent, and independent judiciary. The judiciary plays a pivotal role in upholding a fair and competent business ecosystem. The judiciary is responsible for dispute resolution and maintaining the Register of Beneficial Owners law to fight financial offences.

Tax-Friendly Policies

International businesses that register offshore company Luxembourg can leverage its tax-friendly policies and incentives. Tax rulings and double tax treaties help businesses yield profitable returns, positioning Luxembourg as one of Europe's most lucrative business destinations.

Safety and Security

Company incorporation in Luxembourg is an excellent idea for companies seeking a low-crime destination for their business expansion. Luxembourg's low crime rate positions it as a safe business hub, a fact substantiated by the 2020 Overseas Security Advisory Council report.

Environmental Commitment

Global businesses interested in sustainable solutions can opt for company formation in Luxembourg. The country is committed to global environmental goals, offering a perfect opportunity to maximize its green initiative environment to meet business goals. It has adopted several initiatives to reduce pollution and promote sustainable finance via United Nations-backed programs.

Prerequisites for Company Registration in Luxembourg

Have a look at the prerequisites for company registration in Luxembourg-

  • Business Structure :- Choosing an appropriate business structure aligning with business goals.
  • Name Reservation :- Select a distinctive company name that adheres to the naming regulations established by the Ministry of Corporate Affairs (MCA).
  • Company Name :- Selecting a unique company name and verifying its availability with the Luxembourg Trade and Companies Register (RCS).
  • Collecting Paperwork :- Collecting the required documents to initiate the company registration process.
  • Share Capital :- Determining the share capital basis of the company structure.
  • Registered Office :- Establishing a local registered office to meet compliance requirements for company formation in Luxembourg.

Industries & Businesses for Luxembourg Business Setup

Top 10 industries and businesses for foreign entrepreneurs for Luxembourg business setup ensures promising high returns include the following:

Top 10 Industries to Register Offshore Company Luxembourg

  • Renewable Energy
  • Financial Services
  • Information & Communication Technology (ICT)
  • Biotechnology
  • Logistics & Supply Chain
  • E-commerce
  • Real Estate
  • Space Technology
  • Healthcare & Pharmaceuticals
  • Media & Entertainment

Top 10 Businesses for Luxembourg Company Registration

  • Solar panel installation, Wind energy farm developers & Bioenergy production facilities
  • Investment fund management, Fintech payment solutions & Wealth management & advisory
  • Cybersecurity solutions, Cloud computing & data center services
  • Biopharmaceutical research, Agricultural biotech & Diagnostic and medical device
  • Freight forwarding & transport, Warehousing & distribution
  • Online retail platforms, Dropshipping & Subscription box services
  • Real estate investment trusts (REITs), Property management & development
  • Satellite manufacturing, Space mining exploration & Earth observation data analytics
  • Pharmaceutical manufacturing, medical equipment & Telemedicine solutions
  • Digital content creation studios, online streaming platforms & Event management

Post Incorporation Compliance for Luxembourg Business Setup

Company formation in Luxembourg mandates businesses to adhere to post-incorporation compliance to ensure operational efficiency. Post incorporation compliance requirements for Luxembourg business setup include:

  • Registration with tax authorities
  • Maintaining & updating accounting records
  • Filing annual financial statements
  • Conducting annual general meetings (AGMs)
  • Compliance with VAT regulations
  • Renewal of business permits (if required)
  • Fulfilling corporate tax obligations
  • Adherence to mandatory employment laws
  • Updating the Trade and Companies Register
  • Ensuring beneficial ownership reporting
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Why Trust Enterslice for Company Formation in Luxembourg?

Enterslice has over 10 years of experience ensuring seamless company registration in Luxembourg, a country with an estimated GDP of $96.99 billion in 2025. We are a team of spirited and trustworthy professionals committed to delivering a smooth Luxembourg business setup, facilitating the business to capitalize on unparalleled opportunities. Reasons why you should choose Enterslice for company formation in Luxembourg-

  • Comprehensive knowledge of Laws and Regulations for Company Registration in Luxembourg
  • Facilitated 300+ Company Formation in Luxembourg Successfully
  • Outstanding Positive Rate of 99%, Highest in the Industry
  • Customized Solutions to Register Offshore Company Luxembourg
  • Budget-friendly Solutions for Company Registration in Luxembourg
  • End-to-end Support to Register Luxembourg Company
  • 24/7 Availability to Resolve your Queries During Company Incorporation in Luxembourg
  • Saved 5,00,000+ Hours of Global Entrepreneurs While Company Registration in Luxembourg

FAQs on Luxembourg Company Registration

Company registration in Luxembourg opens a floodgate of opportunities for global businesses to leverage its tax haven image to boost profitability. Luxembourg's tax structure is a significant feature in the country's economy, earning it the tag of a "tax haven." While the residents pay taxes on the income earned globally to meet domestic compliance, global entrepreneurs are taxed only on the income earned within Luxembourg. Tax efficiency is a factor that contributes to making Luxembourg a popular business hub.

The Luxembourg Register of Beneficial Owners (RBE) Law, implemented on March 1, 2019, requires companies listed in the Luxembourg Commercial Register to declare the details about their beneficial owners. This law applies to the businesses registered in the Luxembourg Corporate Registry, such as private companies, public limited companies, as well as non-profits.

This law was brought into effect to deal with money laundering and terror funding, non-compliance of which, invites penalties. RBE grants public access, promoting accountability and instilling transparency in the process of company registration in Luxembourg. This law boosts financial integrity, facilitating a secure business environment for global businesses in Luxembourg.

The Luxembourg Trade and Companies Register, also known as Registre de commerce et des sociétés—RCS—is a database accessible to the public. This database comprises mandatory business information about traders and companies, including RCS numbers, to facilitate transparency and maintain compliance with the required disclosure and publication requirements.

The Luxembourg Trade and Companies Register, or Registre de commerce et des sociétés — RCS, is a public register that the public can freely access to confirm the status of companies with successful company registration in Luxembourg.

Luxembourg is a beautiful landlocked country in Western Europe. Whether you are there for travel or company registration in Luxembourg, do not miss visiting the following top 10 destinations:

  1. Luxembourg City Old Town
  2. Vianden Castle
  3. National Museum of History and Art (MNHA)
  4. Casemates du Bock
  5. Grund District
  6. Clervaux Castle
  7. Moselle Valley
  8. Echternach and the Mullerthal Region
  9. Larochette
  10. Upper Sûre Lake and Nature Park

Company formation in Luxembourg is a stepwise process, and each step takes time to complete. While the usual time for company incorporation in Luxembourg is 2 to 3 weeks, the timeline may vary depending on the accuracy of the documents submitted and the adherence to regulatory and legal compliance during application process.

The Luxembourg Trade and Companies Register (RCS) locally known as Registre de commerce et des sociétés—RCS is the corporate registry in Luxembourg. It is managed by the Luxembourg Business Registers (LBR).

Once company registration in Luxembourg is complete, the business must adhere to various post-registration compliance requirements, including registration with tax authorities, following VAT regulations, filing annual returns, and conducting annual general meetings (AGMs).

Company registration in Luxembourg yields high returns. While there are many cities to invest in Luxembourg, global entrepreneurs can consider investing in the following cities:

  1. Ettelbruck
  2. Luxembourg City
  3. Ettelbruck
  4. Differdange
  5. Clervaux

Given below are the significant features of Luxembourg company formation-

  1. Social and political stability
  2. No restrictions on nationality or residency
  3. Business incentives
  4. Access to resources

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