Luxembourg is a magnet for entrepreneurs thanks to its favorable business environment. Before getting started, it is essential to choose the appropriate legal form and to fully understand the conditions of creation to verify the viability of your project.
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What type of company to create in Luxembourg?
Before starting a business, it is essential to select the legal status adapted:
Types of companies in Luxembourg
| Category | Legal forms |
|---|---|
Note : In Luxembourg, the SARL is a hybrid company, both a capital company and a partnership.
General Conditions for Business Creation in Luxembourg
Sole Proprietorship and Partnerships
| Company type | NO | SHADOW | SCS / SCSP | SARL | SARL-S |
|---|---|---|---|---|---|
Capital Companies
| Company type | SARL | SCA | on | SE |
|---|---|---|---|---|
Conditions for Creating a Business in Luxembourg
To create a business in Luxembourg, several conditions must be met, including:
Establishment authorization
Any person wishing to carry out a commercial, artisanal or industrial activity in Luxembourg must obtain a establishment permit. This authorization is required to ensure that the applicant meets appropriate qualification, integrity and residency criteria.
Conditions of Honorability
| Conditions | Required documents |
|---|---|
Material Installation and Management Conditions
The authorization is only issued if:
- A suitable hardware installation is in place in Luxembourg.
- The applicant ensures the daily management of the company effectively and permanently.
Advantages and Disadvantages of Starting a Business in Luxembourg
Benefits
- Political stability and business-friendly environment.
- Strategic positioning in the center of Europe.
- Advantageous taxation and quality infrastructure.
Disadvantages
- Complex creation procedures.
- High cost of living.
- Potential financing difficulties.
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FAQ: Create your company in Luxembourg
What is the minimum amount to start a business?
| Company type | Capital social minimum |
|---|---|
Who can create a company in Luxembourg?
French and European citizens can create a company in Luxembourg, subject to obtaining prior establishment authorization.
What are the advantages of opening a business in Luxembourg?
Luxembourg offers strategic advantages: it is well located for access to European markets and benefits from advantageous taxation. However, the procedures are complex.
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*Please review the Terms of Service and product availability for your region, or visit Wise’s pricing and fees page for the most up-to-date pricing information.
This publication is provided for general information purposes and does not constitute legal, tax or professional advice on the part of Wise Payments Limited, its subsidiaries and affiliates. It is not intended to replace the advice of a financial advisor or other qualified professional.
We make no representations, warranties or undertakings, whether expressed or implied, as to the accuracy, completeness or timeliness of the content of the publication.
