Set up a company in Luxembourg.
Europe’s second largest fund domicile, an AAA-rated sovereign, and the EU’s lowest standard VAT — Luxembourg is the premium jurisdiction for holding companies, funds, and cross-border structures.
To set up a company in Luxembourg, you choose a legal structure (most commonly a SARL — private limited liability company, or SARL-S for lower setup cost), have the Articles of Association notarised, deposit the minimum share capital, and register with the Luxembourg Business Registers (LBR). You then obtain a business permit from the Ministry of the Economy (if required), register for tax with the Administration des Contributions Directes (ACD), register for VAT, and register for social security with the CCSS.
Standard formation takes 2 to 4 weeks for a SARL, driven by notarial scheduling and bank onboarding. Minimum share capital is €12,000 fully paid up (or from €1 for the SARL-S). The combined effective corporate tax rate in Luxembourg City is 23.87%; VAT is 17%, the lowest standard rate in the EU.
Grant & Graham manages the entire process — structure advice, notary coordination, registration, banking introductions, tax, VAT, and ongoing compliance — through a single senior point of contact.
Nine reasons businesses choose Luxembourg.
A premium EU jurisdiction with an AAA sovereign rating, the world’s second largest fund centre, and a long-established framework for cross-border holding and IP structures.
Global financial hub
The world’s second largest fund domicile after the USA, with deep capital markets, private banking, and cross-border investment infrastructure.
Holding company regime
One of the most established participation exemption regimes in the EU — full exemption on qualifying dividends and capital gains from subsidiaries.
IP box at ~5.2% effective
80% exemption on qualifying IP income (patents, copyrighted software) under the modified nexus approach — effective rate of around 5.2%.
Lowest standard VAT in the EU
17% headline VAT — the lowest standard rate in the European Union — with reduced rates of 14%, 8% and 3% for specific categories.
AAA sovereign rating
Consistent AAA stable rating from S&P, Moody’s and Fitch — one of only a handful of sovereigns globally with triple-AAA across the board.
Strategic EU location
Centre of the EU, founding member, full access to the single market and EU passporting for regulated activity. Border with France, Germany and Belgium.
Multilingual workforce
Trilingual administration (French, German, Luxembourgish) and one of the most international workforces in Europe — English fluent across business and government.
85+ tax treaties
An extensive double tax treaty network covering 85+ jurisdictions, making Luxembourg a natural hub for cross-border holding and IP structures.
Political & legal stability
A founding EU member with a transparent legal system, pro-business government policy, and a long-established reputation as a credible international jurisdiction.
Nine legal structures — one usually fits.
For most international operating businesses, the SARL is the starting point. For funds and investment vehicles, the SCSp dominates. For low-capital start-ups, the SARL-S.
Private Limited Liability Company
The standard structure for operating businesses. Separate legal entity with limited liability. Minimum €12,000 share capital fully paid up. 1–100 shareholders. Notarial deed required.
Simplified Private Limited Co.
Designed for individual entrepreneurs. Share capital from €1 to €12,000. Single natural-person shareholder. Faster setup than a full SARL.
Public Limited Company
For larger businesses or those planning a public listing. Minimum €30,000 share capital (€7,750 paid up). Shares may be in registered or bearer form. Standard for regulated entities.
Special Limited Partnership
The dominant vehicle for private equity, venture capital and alternative funds. Tax transparent. No minimum capital. Flexible governance — modelled on the UK/Delaware LP.
Limited Partnership
At least one general partner with unlimited liability and one limited partner whose liability is capped at their contribution. Used for some fund and holding structures.
General Partnership
Two or more partners with shared, unlimited joint and several liability. Used occasionally in professional services contexts.
Sole Proprietorship
Single owner, no separate legal personality, full personal liability. Simple to register but rarely the right choice for international or multi-stakeholder businesses.
Branch
An operating branch of a foreign company. Not a separate legal entity — the parent retains full liability. Common for foreign banks and regulated firms.
Talk to us first
SARL for operating, SARL-S for individual founders, SCSp for funds, SA for regulated or listed entities. A 25-minute call settles which one is right for you.
Book a call →From decision to live entity.
The end-to-end registration sequence for a Luxembourg SARL — managed by Grant & Graham, with notary and bank coordination at every step.
Reserve a company name
Confirm the proposed name is unique and meets Luxembourg naming regulations. Reservation is filed with the Luxembourg Business Registers (LBR).
Luxembourg Business Registers (LBR) →Draft the Articles of Association
Prepare the company’s constitutional documents, including share structure, director appointments, registered office, and the company’s objects. For SARL and SA, the documents are filed in French.
Open a temporary bank account & deposit capital
Open a capital account at a Luxembourg bank and deposit the minimum share capital. For a SARL this is €12,000 fully paid up at registration. The bank issues a blocking certificate for the notary.
Notarisation of the Articles
Sign the Articles of Association before a Luxembourg notary. For SARL and SA the notarial deed is mandatory. The notary then files the constitutional documents with the LBR.
Register with the Luxembourg Business Registers
The notary files the incorporation documents with the LBR. The company is then assigned its commercial register number (RCS) and publishes the Articles in the Recueil électronique des sociétés.
Online Registration Portal →Business permit (Autorisation d’établissement)
For commercial, craft, industrial and most regulated activities a business permit is required from the Ministry of the Economy. Obtained via guichet.lu before activity starts.
Guichet.lu →Tax registration (TIN, CIT & VAT)
Register with the Administration des Contributions Directes (ACD) for corporate tax. Register for VAT with the Administration de l’Enregistrement, des Domaines et de la TVA if turnover exceeds the threshold or you make intra-EU supplies.
Social security registration
Register with the Centre Commun de la Sécurité Sociale (CCSS) before hiring. All employees and directors with a Luxembourg employment relationship must be registered for social security.
CCSS →Operating bank account & banking onboarding
Convert the capital account into a fully operational business bank account. Luxembourg bank KYC is rigorous — expect detailed source of funds and ultimate beneficial owner documentation. G&G coordinates introductions across our banking network.
Accounting, reporting & ongoing compliance
Set up bookkeeping aligned to Luxembourg GAAP (or IFRS where applicable). Prepare annual financial statements, file the annual corporate tax return (Form 100) with the ACD by 31 December of the following year, and maintain UBO records.
What it costs to incorporate & run.
All figures are indicative for a standard SARL setup with one shareholder and one director, based in Luxembourg City. Luxembourg setup is more involved than most EU jurisdictions due to the mandatory notarial deed.
One-time setup
Excludes the €12,000 minimum SARL share capital (which remains your working capital).
Ongoing monthly / annual
Scales with payroll, transaction volume and substance requirements. Premium banking and audit add cost for SAs and regulated entities.
The legal framework to know.
A summary of the core legislation governing companies in Luxembourg — we coordinate with senior Luxembourg counsel and notaries where specialist advice is needed.
Corporate Law
- Law of 10 August 1915 on Commercial Companies as amended
- Civil Code Code civil
- Commercial Code Code de commerce
Tax Law
- Luxembourg Income Tax Law LITL / Loi de l’impôt sur le revenu
- VAT Law Loi sur la TVA
- Pillar Two minimum tax legislation
Employment Law
- Labour Code Code du travail
- Social Security Code Code de la sécurité sociale
- Occupational Health & Safety regulations
Data Protection
- Data Protection Law of 1 August 2018
- EU GDPR (directly applicable)
- National Commission for Data Protection CNPD
Financial Services
- Law of 5 April 1993 on the Financial Sector
- CSSF prudential framework
- UCITS, AIFM & investor protection regulation
Intellectual Property
- Patent Law Loi sur les brevets
- Trademark Law & Benelux Convention
- IP Office IPIL · IP box regime (Art. 50bis LITL)
Luxembourg, answered.
Four steps from enquiry to live entity.
Discovery call
30-minute conversation to understand your business, tax position, substance requirements, and what you actually need from the Luxembourg entity.
Recommendation
Senior advisory on the right structure (SARL, SARL-S, SA, SCSp), share split, notary, banking partners and substance. Fixed quote.
End-to-end formation
We coordinate the notary, capital deposit, LBR filing, business permit, tax and social security registration, and banking onboarding.
Ongoing support
Retained accounting, tax, VAT, payroll, annual filings, and substance management. Pillar Two and UBO compliance handled.
Ready to incorporate in Luxembourg?
Tell us in 25 minutes what you need. We’ll tell you honestly whether Luxembourg is the right jurisdiction — and if it is, we’ll handle the setup end-to-end.