The process of Luxembourg company registration involves several key steps. First, choose the legal form of your business entity (SARL, SARL-S, SA, SCSp, or SPF). Then draft and notarise the Articles of Association, deposit the required share capital into a Luxembourg bank account, and incorporate the company with the Luxembourg registrar of companies (RCS/LBR).

Once registered, the company details are published in the RESA gazette. Tax registration, VAT registration, and, where necessary, employer social security registration follow.

Every stage of company formation in Luxembourg must be carefully managed to meet compliance and avoid delays.

When it comes to company formation in Luxembourg, the most popular legal forms are the SARL (Private Limited Liability Company), the SARL-S (Simplified SARL), and the SA (Public Limited Company). Entrepreneurs launching small and medium businesses usually choose the SARL or SARL-S, while the SA is often used by larger enterprises or investors planning public fundraising.

The SARL requires a minimum share capital of €12,000, which must be fully paid before incorporation. By contrast, the SARL-S is designed for start-ups and entrepreneurs with limited budgets: its share capital can start from as little as €1. This makes the SARL-S one of the most cost-effective routes for Luxembourg company registration.

The Luxembourg company formation cost depends on the legal form and whether the business is considered high-risk. For a SARL, setup costs usually range between €6,000–€12,000.

An SA requires higher share capital (€30,000) and stricter audit obligations, so costs often reach €12,000–€20,000+.

On top of this are notary fees, CSP (Corporate Service Provider) fees, RCS registration charges, and annual accounting costs.

For high-risk sectors like crypto, iGaming, or forex, the cost of setting up a company in Luxembourg can easily exceed €25,000–€50,000 due to licensing, compliance, and banking challenges.

If you are wondering how long to set up a company in Luxembourg, the average timeframe is 2–5 weeks for standard structures.

Document preparation takes 1–2 weeks, bank account opening and capital deposit add 1–2 weeks, and the notary deed with RCS registration takes 3–7 working days. VAT and tax registration add another 1–2 weeks.

For high-risk industries, setting up a company in Luxembourg may take 6–10 weeks or more due to enhanced due diligence, banking rejections, or licensing requirements.

Yes, foreigners can fully own and control a company in Luxembourg. Company formation in Luxembourg allows 100% foreign ownership without nationality restrictions.

However, to strengthen the company’s substance and improve the chance of bank account approval, many foreign entrepreneurs appoint local directors or maintain a registered office in Luxembourg. This demonstrates compliance with EU standards and reassures the Luxembourg registrar of companies and local banks.

There are several benefits of setting up a company in Luxembourg. The country is strategically located in the heart of Europe, giving direct access to the EU single market. It offers a stable economy, a highly skilled multilingual workforce, and a strong financial services sector.

Luxembourg also has an extensive network of double taxation treaties, making it an attractive location for international holding and investment companies. For entrepreneurs, the availability of the SARL-S makes it possible to launch a business with minimal capital. These factors combined make setting up company in Luxembourg highly appealing for both local and international investors.

The Luxembourg registrar of companies (RCS) is the official trade and companies register where all legal entities must be listed. During the incorporation process, the articles of association are lodged with the RCS and published in the RESA (official gazette). Without this step, your company does not legally exist.

The RCS also records changes in shareholding, directorship, and registered office, as well as annual filings. Compliance with the RCS ensures transparency and credibility for your business. When planning company formation in Luxembourg, understanding the obligations linked to the registrar of companies is essential.

While Luxembourg is not a classic “offshore” jurisdiction, many international investors look at Luxembourg offshore company formation because of its favourable tax environment and global treaty network. Offshore in this sense refers to cross-border structuring: using Luxembourg companies to hold foreign assets, manage intellectual property, or act as investment vehicles.

A Luxembourg holding company (Soparfi) is particularly popular because of its tax exemptions on dividends and capital gains under certain conditions. This makes Luxembourg an attractive choice for global businesses that want an EU-based structure with international tax planning benefits.

For company registration in Luxembourg, you typically need:

• Valid IDs or passports of all shareholders and managers
• Proof of residence (utility bill, certificate, or bank statement)
• Draft articles of association
• Bank certificate confirming share capital deposit
• Business activity description (for VAT or business permit)

If you plan on hiring employees, additional filings with the CCSS are required. Collecting these documents early will reduce delays and speed up setting up a company in Luxembourg.

After incorporation, companies in Luxembourg must comply with ongoing legal and tax requirements. Annual accounts must be prepared, approved by shareholders within 6 months, and filed with the RCS within 7 months after year-end. Larger companies may need an audit, while SMEs may be exempt.

Filing corporate tax returns, maintaining VAT compliance, and keeping statutory registers are also mandatory. Failing to meet these obligations results in penalties and higher filing fees. This makes it important to work with accountants or legal advisors after company formation Luxembourg to stay compliant.

A SARL requires €12,000 capital and is designed for SMEs, while an SA (Société Anonyme) requires €30,000 capital and is suitable for large corporations and investment structures. SAs can issue shares publicly and are often used for Luxembourg offshore company formation and fund vehicles. SARLs are simpler, with restricted share transfers and lighter audit requirements. Choosing between them is one of the first decisions in Luxembourg company registration.

Yes, companies incorporated under Luxembourg company registration can open bank accounts both in Luxembourg and internationally. However, opening a local Luxembourg bank account is one of the hardest parts of the process. Strict AML and KYC checks cause frequent rejections, especially for high-risk sectors. Some companies therefore use EMIs (Wise, Airwallex, Payoneer) for fast access to international payments. Still, a local account strengthens credibility for tax residency and compliance after setting up a company in Luxembourg.

Yes. Once you complete company formation Luxembourg, you must file annual accounts with the RCS. Accounts must be approved within six months of year-end and filed within one month of approval. Audits are required for larger SAs and for SARLs that exceed thresholds for turnover, balance sheet, or employees. Late filing results in fines and reputational risk for your Luxembourg company registration.

Yes, but high-risk company formation in Luxembourg is more expensive and time-consuming. Crypto, iGaming, forex, adult content, nutraceuticals, and CBD companies face tougher compliance. Crypto companies must register as VASPs with the CSSF, forex firms need investment licences under MiFID II, and iGaming structures may need permits depending on operations. Banking is the main hurdle, with many traditional banks rejecting high-risk applications. The Luxembourg company formation cost for high-risk sectors often exceeds €25,000–€50,000, and timelines extend to 6–10 weeks.

Yes, certain activities require a business licence. Commercial, craft, and industrial companies must obtain authorisation from the Ministry of Economy. Regulated activities like finance, payments, real estate, and crypto require CSSF approval. Without a licence, your company formation in Luxembourg cannot operate legally. This makes licence preparation a critical step for many entrepreneurs considering setting up a company in Luxembourg.