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  (+352)278 617 15


(+352)278 617 15
Company Formation Luxembourg



Open Simplified Limited Liability Company in Luxembourg

Updated on Friday 08th December 2017

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open-simplified-limited-liability-company-in-luxembourg.jpgA new type of company will come into force starting January 1st, 2017, when the entrepreneurs will be able to establish a simplified limited liability company (Sàrl-S), according to Luxembourg Company Law. This is an alternative to the regular limited liability company (Sàrl) and it will be easier to set up, being nearly similar to mini-GmbH in Germany and Sarl-starter in Belgium.

The main advantages of the simplified limited liability company are the reduced costs and the short time for the incorporation process. You will only need a minimum capital share of one euro and one day for the registration, once you have prepared all the documents required for the incorporation. This type of company is proper for small businesses, such as start-ups with a reduced capital.


The effects of the new type of company


The authorities in Luxembourg want to promote and encourage entrepreneurship and investments in start-ups and to attract more businesses that will create economic growth. This is a chance for many people who are looking for a job to become entrepreneurs. According to the law, there is no need for a notarial deed and the share capital was reduced from EUR 12,000 (for a regular limited liability company) to only one euro. The founder of this type of company needs to have a deposit that will be constituted as 5% of the net profit calculated yearly till reaching EUR 12.394,68.

Only natural persons can open a simplified limited liability company in Luxembourg and they are restricted to only one company of this type. The entrepreneur will need a license for a commercial activity and he/she can change the type of company after a time in order to have a regular limited liability company or other types of firms.


Reduced costs


A businessmen who chooses to open a simplified limited liability company needs only around EUR 200 for the incorporation costs, while for a limited liability company the total costs will be over EUR 13,000.

This type of company is designed for entrepreneurs with a reduced capital and for those who want to try a new business idea and see how it works without spending much for bureaucratic procedures, such as incorporation.

If you need more information about how you can open a simplified limited liability, you may contact our specialists in company formation in Luxembourg.


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