Luxembourg at a glance
Luxembourg is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Luxembourg
- SARL (Societe a responsabilite limitee) The private limited company and Luxembourg's most common form (about two-thirds of companies). 1 to 100 shareholders, EUR 12,000 capital fully paid at incorporation, formed by notarial deed.
- SARL-S (simplified SARL) The simplified one-euro SARL for first-time entrepreneurs (natural persons only): EUR 1 to EUR 12,000 capital, formed by private deed without a notary, and it requires a business permit.
| Corporate tax | Combined corporate tax of about 23.87% in Luxembourg City for 2025 (down from 24.94%), made up of a 16% corporate income tax, a 7% solidarity surtax and a 6.75% municipal business tax. The total varies by municipality, roughly 24% to 25% elsewhere. |
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| VAT rate | Standard VAT is 17%, the lowest standard rate in the EU, with reduced rates of 14%, 8% and 3%. Registration is mandatory above EUR 50,000 of turnover. |
| Minimum share capital | SARL: EUR 12,000, fully paid at incorporation (a 2026 reform allows the paid-up amount to be deferred up to 12 months). SARL-S: EUR 1 to EUR 12,000. SA: EUR 30,000, with at least 25% paid up. |
| Setup time | Typically about one to three weeks. Expedited online providers advertise around 5 business days, while the full route (name reservation, notarial deed, capital deposit, RCS registration and business permit) runs 3 to 4 weeks. The SARL-S can be quicker as it needs no notary. |
| Remote setup | Yes. No nationality or residency rules apply, so non-residents can incorporate without travelling by granting a notarised power of attorney to a local agent. A Luxembourg registered office is required, and bank KYC for the blocked capital account is the main hurdle. |
| Director / residency | No residency or nationality requirement for directors or shareholders. A SARL needs at least one manager (gerant). In practice the business permit for commercial or regulated activities needs a qualified manager and genuine substance. |
| Banking options | Formation first needs a blocked capital account; the bank issues a deposit certificate used for registration. Banks include Spuerkeess (BCEE), BGL BNP Paribas, BIL and ING Luxembourg. Wise and Revolut Business and non-resident IBAN providers are widely used because traditional KYC can be slow. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
Luxembourg has the EU's lowest standard VAT (17%) and is a AAA-rated financial centre, the world's second-largest investment fund domicile. The SARL dominates, and the SARL-S one-euro company lets first-timers start with minimal capital. The SOPARFI holding regime makes it a major hub for holding structures. Business is done in French, German and English.
How to register a company in Luxembourg
The process is straightforward and, in Luxembourg, largely digital. In outline:
- Choose your company type and name. Most founders pick the SARL (limited); we confirm the name is available.
- Verify your identity. Yes. No nationality or residency rules apply, so non-residents can incorporate without travelling by granting a notarised power of attorney to a local agent. A Luxembourg registered office is required, and bank KYC for the blocked capital account is the main hurdle.
- File the incorporation. Once documents are signed, registration usually completes in around 1-3 weeks.
- Open a business account and register for tax/VAT. Formation first needs a blocked capital account; the bank issues a deposit certificate used for registration. Banks include Spuerkeess (BCEE), BGL BNP Paribas, BIL and ING Luxembourg. Wise and Revolut Business and non-resident IBAN providers are widely used because traditional KYC can be slow.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
Form your Luxembourg company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Luxembourg, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Luxembourg
Founders from outside the EU can own and run a Luxembourg company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Luxembourg up front, so there are no surprises.
Luxembourg and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Luxembourg company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Luxembourg against other countries, see company formation in Europe.