Investors choose to set up a SARL company in Luxembourg because of the easy set up procedure and its characteristics which can suit multiple types of business activities. The limited liability company (SARL – société á responsabilité limitée) is the most used company type in the country.
The SARL can be formed by natural or legal persons and there are a few steps the investors need to take in order to incorporate the company and comply with all the commercial and business requirements in the country.
The limited liability company is the most suited type of business for average size companies. Our company registration agents in Luxembourg also provide you complete information about the other types of companies available in Luxembourg, if you require a different kind of business structure.
Requirements for the Luxembourg limited liability company
The main condition for forming a limited liability company in Luxembourg is to provide a minimum share capital of approximately 12,400 EUR. This amount must be fully subscribed and fully paid up at the time of the incorporation. Contributions to the capital can be made both in cash and in kind and they are divided into shares. The minimum share value must not be lower than 24.79 EUR.
The limited liability company has restrictions regarding the transfer of shares; they are not freely transferable and can only be transferred after a decision made within a company general meeting. Any share transfer must be recorded in a deed.
The shareholders are liable only to the extent of the contributions made to the share capital. A SARL in Luxembourg can have between two and 40 shareholders. The company management principles for this type of company require that a business manager and company director are appointed. The articles of association can contain rules for the organization of general meetings within the company.
Companies in Luxembourg have to pay corporate income tax and other taxes such as the property tax, the net wealth tax or the business tax. Business owners must also register their company for VAT purposes.
Our company formation agents in Luxembourg can help you comply with the requirements for accounting and financial records submissions. Limited liability companies in Luxembourg with more than 25 shareholders are subject to mandatory supervision by one or more auditors. Our agents can provide you withl accounting services for your company.
The company incorporation procedure in Luxembourg
Regardless of its type, any legal entity in Luxembourg must be registered with the Trade and Companies Register. Before preparing the registration documents for the new business, investors must check the availability of their desired business name. This can be done online by submitting a request to the Trade and Companies Register.
Our company formation agents in Luxembourg can help you open a bank account for the company and deposit the minimum share capital. We can also help you during the following company incorporation steps, when you are required to draw up the articles of association and other documents.
Our agents offer you legal assistance for opening limited liability companies and other types of firms also in other European countries, such as Spain, Poland, Italy and Hungary. If you need accounting services in European countries, like Romania, you may also contact us.
We invite you to watch a short video about how you can open a SARL in Luxembourg:
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