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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.

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

FAQ: Tax Rates in Luxembourg

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]

FAQ: Company Formation in Luxembourg

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.