Luxembourg Company Formation

Luxembourg Company Formation – A Comprehensive Guide for Non-Residents Main Characteristics and the basic rules of Company registration in Luxembourg

Luxembourg Company Formation with BRIS Group

BRIS Group provides professional Luxembourg company formation services for international investors, entrepreneurs, and businesses seeking a reputable European base. Forming a Luxembourg SARL or SA offers limited liability protection, access to EU markets, and a favorable tax environment. Our experts handle the entire Luxembourg company registration process remotely, including assistance with corporate banking, compliance, and ongoing administration, ensuring your business operates efficiently and in full compliance with Luxembourg regulations.

📌 Start your Luxembourg company with BRIS Group today — trusted experts in global incorporation.

Video: Company formation guide

Establish Your European Business Presence in One of the World’s Most Respected Financial Hubs

Luxembourg has earned its reputation as one of Europe’s most prestigious business jurisdictions, combining economic stability, tax efficiency, and a strong legal system.
For entrepreneurs and investors looking to register a company in Luxembourg, the Grand Duchy offers a transparent regulatory framework, international credibility, and unparalleled access to the EU single market.

Whether you’re setting up a Luxembourg holding company, an investment vehicle, or a service-oriented business, this guide walks you through the full process — from benefits and requirements to step-by-step registration.

Why Choose Luxembourg for Company Formation?

Luxembourg stands as one of Europe’s most trusted and globally integrated business centers — ideal for both startups and multinational structures.

🔍 Need tailored guidance? Our advisors can help you identify the optimal Luxembourg entity for your objectives.

Key Reasons to Register a Company in Luxembourg

  • Political and Economic Stability: Consistently ranked among the most stable EU economies.

  • Favorable Tax Framework: Competitive corporate tax rates with various exemptions for holding and financing companies.

  • Prime European Location: Centrally positioned between France, Germany, and Belgium, offering direct access to the EU market.

  • Strong Financial Sector: A global leader in private banking, investment funds, and structured finance.

  • Reputable Jurisdiction: Recognized for transparency, compliance, and investor confidence.

  • Multilingual Workforce: Highly educated professionals fluent in English, French, and German.

Key Highlights of Luxembourg Company Formation

Aspect Details
Legal System Civil law framework aligned with EU directives
Main Entity Types SARL, SA, SCS, SCSp, SOPARFI
Corporate Tax Rate Approx. 24.94 % (can vary with municipal tax)
Ownership 100 % foreign ownership allowed
Minimum Capital SARL – €12,000 / SA – €30,000
Registered Address Must be located in Luxembourg
Bank Account Required for capital deposit
Formation Time 2 – 4 weeks
EU Market Access Full access via Luxembourg incorporation

Types of Companies Suitable for Non-Residents

Luxembourg offers several company types, each designed for specific business or investment purposes:

1. Société à Responsabilité Limitée (SARL) – Private Limited Liability Company

  • Most common and flexible structure for small to medium businesses.

  • Minimum share capital: €12,000.

  • Ideal for holding or trading operations.

2. Société Anonyme (SA) – Public Limited Company

  • Suitable for large enterprises and international investors.

  • Minimum capital: €30,000.

  • Shares can be listed or privately held.

3. Société en Commandite Simple (SCS) – Limited Partnership

  • One or more general partners and limited partners.

  • Flexible and tax-transparent, suitable for joint ventures.

4. Société en Commandite Spéciale (SCSp) – Special Limited Partnership

  • Often used for private equity and investment funds.

  • No legal personality; highly flexible in structuring.

5. SOPARFI – Luxembourg Holding Company

  • Designed for managing participations and investments.

  • Benefit from EU Parent-Subsidiary and Double Taxation Treaties.

Advantages of Luxembourg Company Formation for Non-Residents

Benefit 💬 Description
EU Market Access Seamless entry to European markets and regulatory systems.
Tax Efficiency Holding and financing companies enjoy exemptions and treaties.
Prestige & Reputation Incorporating in Luxembourg enhances credibility with partners and banks.
Asset Protection Strong legal safeguards for shareholders and investors.
Confidentiality Limited disclosure of beneficial ownership in public registers.
Business-Friendly Environment Streamlined company formation and modern infrastructure.

Considerations and Challenges for Non-Residents

⚠️ Factor 💬 Details
Setup Costs Higher initial and maintenance costs compared to smaller offshore jurisdictions.
Regulatory Complexity Requires compliance with EU standards and local laws.
Substance Requirements Authorities expect genuine local management and presence.
Banking Due Diligence Luxembourg banks apply strict KYC and AML procedures.

Requirements for Luxembourg Company Registration

Before registering your company, ensure the following elements are prepared:

  • Company Name: Must be unique and approved by the Luxembourg Trade and Companies Register (RCS).

  • Registered Office: A physical address in Luxembourg is mandatory.

  • Directors and Shareholders: At least one director and one shareholder (can be non-resident).

  • Share Capital Deposit: Capital must be deposited into a Luxembourg bank account before notarization.

  • Articles of Association: Define company purpose, structure, and operations.

  • Due Diligence: KYC and AML documentation for all stakeholders.

  • Business Permit: Required for regulated or commercial activities.

  • VAT & Tax Registrations: If applicable, register with the Luxembourg tax authorities.

Step-by-Step Process of Luxembourg Company Formation

Step 1 – Consultation & Planning

Define your objectives, structure, and tax strategy with our professional advisors.

Step 2 – Name Reservation

Reserve your company name through the Luxembourg RCS.

Step 3 – Drafting the Articles of Association

Our legal team prepares customized Articles of Association, ensuring compliance with Luxembourg corporate law.

Step 4 – Capital Deposit

Deposit the minimum share capital into a blocked corporate bank account in Luxembourg.

Step 5 – Notarization

Sign and notarize your incorporation deed before a Luxembourg notary.

Step 6 – Registration with RCS

Submit the notarized documents to the Trade and Companies Register for official incorporation.

Step 7 – Business Permit & VAT Registration

Apply for relevant permits and register for VAT (if applicable).

Step 8 – Publication in RESA

Your company’s formation details are published in the Recueil Électronique des Sociétés et Associations (RESA).

Luxembourg Company Formation Timeline

Stage Estimated Duration
Name Reservation 1 – 2 business days
Drafting & Notarization 3 – 5 business days
RCS Registration 5 – 7 business days
Business Permit / VAT Setup 1 – 2 weeks
Total Estimated Time 2 – 4 weeks

How Our Professionals Can Help You

Setting up a company in Luxembourg requires precision and local expertise.
Our dedicated team provides end-to-end company formation services, ensuring compliance and efficiency from day one.

Our Services Include

🧭 Company Structure Consultation – Determine the optimal entity and tax structure.

📄 Document Drafting & Filing – Preparation and submission of all legal paperwork.

🏦 Bank Account Assistance – Coordination with reputable Luxembourg banks for capital deposit.

⚖️ Liaison with Notaries & Authorities – Managing all interactions on your behalf.

💡 Business Permit & VAT Support – Guidance for regulated or taxable operations.

🧾 Accounting & Bookkeeping – Comprehensive financial management post-incorporation.

💼 Ongoing Compliance – Annual reporting, renewals, and statutory obligations.

🧠 Tax Planning & Advisory – Expert structuring to optimize tax efficiency under EU and local laws.

🔍 Need expert guidance? We’ll ensure your Luxembourg business setup is compliant, efficient, and aligned with your international strategy.

Beyond Incorporation: Building a Presence in Luxembourg

🧩 Service Area 💬 How We Support You
Market Entry & Strategy Feasibility studies and business planning.
Corporate Banking Bank account setup with top Luxembourg institutions.
Substance & Office Solutions Registered address and local director services.
Accounting & Audit Full-service bookkeeping and statutory audit support.
Tax Filing & Reporting Ongoing tax compliance and planning.

Why Choose BRIS Group for Luxembourg Company Formation

💼 Our Advantage 💬 Your Benefit
Deep European Expertise Decades of experience across EU jurisdictions
Multilingual Team Fluent in English, French, and German
Transparent Fees Fixed-cost packages, no hidden charges
End-to-End Service From incorporation to compliance
Personalized Approach Tailored support for non-residents and investors

Start Your Luxembourg Company Formation Today

Luxembourg provides a prestigious gateway to the European market, combining stability, opportunity, and world-class infrastructure.
Whether you’re planning a Luxembourg holding company, investment structure, or trading business, our team at BRIS Group will guide you from concept to completion — ensuring a seamless, compliant, and optimized setup.

📩 Contact us today for a free consultation and learn how to register your company in Luxembourg efficiently and strategically.
Let us be your trusted partner in expanding your global business footprint through Luxembourg company formation.

Ready to Register Your Company in Luxembourg?

Questions & Answers

1. What is the Corporation Tax rate in Luxembourg?

Corporation Tax (CIT) in Luxembourg is structured as follows: for businesses with taxable income up to €175,000, the rate is 15%. For those with taxable income between €175,001 and €200,001, the tax is calculated as €26,250 plus 31% of the income exceeding €175,000.

2. How does Luxembourg’s tax system treat corporate residents and non-residents?

Corporate residents in Luxembourg are taxed on their worldwide income. In contrast, non-residents are only taxed on income sourced within Luxembourg.

3. What is the Income Tax rate in Luxembourg?

The Income Tax rate in Luxembourg amounts to 43.6%. This is comprised of a 40% income tax and an additional 9% solidarity surcharge applied to the income tax amount.

4. What is the standard VAT rate in Luxembourg?

The standard Value Added Tax (VAT) rate in Luxembourg is 17%. There are also reduced rates of 3%, 8%, and 14% applicable to specific goods and services.

5. Are there any special considerations for businesses with varying income levels?

Yes, businesses with taxable income above €200,001 will face a higher effective tax rate due to the progressive structure of the Corporation Tax. It is advisable for businesses to consult tax professionals for tailored advice based on their specific income levels and tax obligations.

👉 Learn more: Visit our Full Luxembourg Company – FAQ page
or contact our tax and company formation team at 📧 [email protected]

What types of companies can non-residents establish in Luxembourg?

Non-residents can form several types of companies in Luxembourg, including the Société à Responsabilité Limitée (Sàrl), a limited liability company, and the Société Anonyme (S.A.), a public limited company. Each type has specific legal structures and requirements tailored to different business needs.

What are the benefits and advantages of forming a company in Luxembourg?

Luxembourg offers numerous benefits:

Tax Efficiency: The corporate tax rate is competitive, and there are favorable rulings for intellectual property.

Political Stability: Luxembourg is known for its strong political and economic stability.

Strategic Location: It is centrally located in Europe, making it ideal for accessing various markets.

Business-Friendly Environment: Administrative procedures are streamlined, enhancing ease of doing business.

What are the requirements for forming a company in Luxembourg?

Key requirements include:

Minimum Capital: €12,000 for Sàrl and €30,000 for S.A.

Local Registered Office: A physical address is required.

Directors: At least one director must be a resident of Luxembourg, though shareholders can be non-residents.

Are there any restrictions for non-residents forming a company?

While non-residents can easily establish a company, they must adhere to Luxembourg laws. There are no restrictions on foreign ownership, but certain industries may have specific regulations or require additional licenses.

How long does it take to form a company in Luxembourg?

The company formation process is efficient and can typically be completed within one week, given that all documentation is prepared correctly. This includes notarizing the company’s articles of incorporation and registering with the Luxembourg Trade and Companies Register (RCS).

This FAQ provides clear and concise information on forming a company in Luxembourg, helping potential investors understand the key aspects of the process.

👉 Learn more: Visit our Full Luxembourg Company – FAQ page
or contact our tax and company formation team at 📧 [email protected]

This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.

BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.

About Luxembourg

Country: Luxembourg

Capital: Luxembourg

Continent: Europe

Language: German, French

Currency: Euro (EUR)

Time Zones: GMT +1

Dial Code: +352

Abbreviations: LU

Helping Your Company Thrive in Luxembourg With us, starting and running a business in Luxembourg will be easy and efficient!

  • Full support of the company’s registration in Luxembourg: from the preparation of documents to their submission.
  • Remote registration: all processes are online, wherever you are.
  • Secretary and Treasurer: we can take on these important roles.
  • Nominal directors and shareholders: we will ensure the confidentiality of your information.
  • Help in opening a bank account: we will simplify this complex process.
  • Registration for taxes, VAT and EORI: ensure all requirements are met.
  • Website development: we will create a professional online representation for your business.
  • Logo creation: we will design a unique and memorable logo for your brand.
  • Full administrative support of the company: we will take over routine tasks.
  • Mailing address organization: we provide a reliable mailing address for your business.
  • Organization of the virtual office: we will ensure the professional image of your company.
  • Telephone answering service: we will answer calls on behalf of your company.
  • Accounting, audit and reporting: ensure accurate and timely accounting.
  • Preparing and filing a VAT declaration: let’s save you the trouble.
  • Interaction with local authorities: take over communication with state institutions.
  • Trademark registration: protect your brand.
  • More Emphasis on Customer Input.

Our team of consultants are here to take you through the process.