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Why Opt for Company Registration in Luxembourg?

Luxembourg, a country that provides a unique low-tax environment, is famous for its corporate structuring expertise, which is crucial for company registration in the quickest possible timeframe. The pro-business climate of Luxembourg attracts international investors and promoters to experience the thorough process of company formation in the heart of Europe.

Corpbiz ensures facilitating company registration in Luxembourg, which is a top destination known for its favourable business climate and impressive economic growth. Moreover, entrepreneurs seeking to launch their business in Western Europe must consider Luxembourg for its strategic location, investor-friendly tax regime, and robust financial infrastructure.

However, Luxembourg, which is strategically well-placed to act as a gateway to the EU market, ensures connecting businesses with more than 500 million customers. In addition, it offers a world-class infrastructure and a multilingual workforce, guaranteeing smooth and effective business operations.

Corpbiz is a trusted global consulting company that simplifies the process of company registration in Luxembourg.

Company Registration in Luxembourg?

Benefits of Business Incorporation in Luxembourg

The benefits of business incorporation in Luxembourg, which stands out as an attractive destination for many businesses, are as discussed below:

Benefits of Business Setup in Luxembourg
Favourable Tax Regime

Favourable Tax Regime

A favourable tax regime offers an extensive network of double tax treaties and tax optimization benefits in Luxembourg company setup. It further ensures offering a competitive VAT regime with various tax exemptions and incentives in research and development, intellectual property, and holding companies.

Political and Economic Stability

Access to the EU Market

Businesses in Luxembourg have full access to the internal European Union market, which boosts excellent connectivity with neighbouring nations such as France, Germany, and Belgium. However, it is positioned as an ideal hub for cross-border business activities. It is one of the key benefits of company registration in Luxembourg.

Ease of Company Incorporation

Political & Economic Stability

Business incorporation in Luxembourg offers a high degree of political and economic stability, making it a reliable location and attractive destination for businesses looking to establish their presence in Europe.

Access to International Markets

Diversified Workforce

Business incorporation in Luxembourg offers access to a highly skilled and diversified workforce from all nationalities, capable of speaking multiple languages and holding a high-standard education degree.

Robust Financial Services Sector

Internationally Recognized Financial Centre

Luxembourg, which is home to one of Europe’s largest internationally recognized financial centres, attracts a wide range of banking systems, asset management companies, and insurance firms to provide a strong financial ecosystem and world-class financial opportunities.

Attractive Residency Options

Digital Infrastructure

Business incorporation in Luxembourg, which is considered the world’s best country in the area of information and communication technology, demonstrates its current potential as an innovative and pioneering country, providing support in tech and digital infrastructure.

Wide Range of Business Structures

Government Incentives

The Government of Luxembourg actively supports entrepreneurs by offering indefinite incentives, including financial aid, investment loans, interest subsidies, export credits, and special guarantees/ subsidies. These incentives further encourage investment and make business incorporation easier and more attractive.

Strong Legal and Regulatory Framework

Investment Landscape

As the world’s 2nd largest investment fund centre after the United States, Luxembourg offers a beautiful investment landscape, making it an ideal destination for both domestic and international investors intending for a business incorporation in Luxembourg.

Requirements for Company Registration in Luxembourg

Have a look at the following requirements to be fulfilled for the company registration in Luxembourg:

Checklist to Start a Business in Luxembourg

  • Access to capital and shares, such as bonds and financial instruments
  • Must have a minimum of 1 and a maximum of no limit of shareholders
  • Appoint at least 3 directors in the manner as prescribed under the respective laws
  • Have a minimum paid-up capital of EUR 12,000
  • Must appoint a statutory auditor for the company’s financial statement
  • Must have a registered office in Luxembourg
  • Obtain the necessary business licenses to legally operate in Luxembourg
  • Must obtain a VAT registration number
  • Register Social Security to ensure compliance with Luxembourg’s labour laws
  • No nationality or residency requirements for both manager and shareholders
  • No requirement to be physically present at the time of company registration
Documents for Company Formation in Luxembourg

Documents Needed for Company Registration in Luxembourg

The list of documents required for company registration in Luxembourg is mentioned below-

  • Memorandum and Articles of Association (M&AOA)
  • Duly signed application form
  • Initial capital information
  • Certificate of bank deposit
  • Information about the firm, registered office, and shareholders
  • National identity and address proof of all shareholders and directors
  • Copy of passports of all shareholders and directors
  • Most recent utility bills/ credit card statements/ bank statement
  • Board resolution detailing the formation of a branch or subsidiary office
  • Any other relevant document (if required)

Step-by-Step Guide to Incorporating a Business in Luxembourg

The step-by-step guide to incorporating a business in Luxembourg is provided below:

Company Registration Process in Luxembourg

Choose a Business Structure

The first step requires the applicant to choose an appropriate business structure that aligns with their goals and the activities of their business. However, each legal structure must be subject to specific implications for taxation, liability, and investment requirements. We help select a business structure.

Reserve Company Name

The next step requires the applicant to apply for a unique company name reservation and verification with the Trade and Companies Register of Luxembourg. Our experts at Corpbiz help you reserve your company name.

Prepare Necessary Documents

The next step for business incorporation in Luxembourg requires the applicant to prepare the necessary and basic KYC documents, including the director’s name, certified true passport copies, proof of address, bank reference letter, and CV for internal due diligence checks. We assist you with documentation.

File Registration Application

After preparing the documents, the applicants must proceed to file the registration application form, along with the payment of necessary fees, directly with the Trade and Companies Register of Luxembourg.

Grant of Registration Certificate

Upon the submission and verification of all the documents duly submitted to the Luxembourg Trade and Companies Register, it grants the mandatory registration needed to obtain official recognition and legal status as a corporate entity. We ease your journey of company registration in Luxembourg, saving you time and effort.

Business Structures for Company Registration in Luxembourg

According to the Luxembourg Commercial Law, the several types of business structures for company registration in Luxembourg are as discussed below:

Global Business Company (GBC)

Sole Proprietorship

A sole proprietorship is the simplest form of a business structure primarily owned by a trader, craftsman, artisan, or self-employed intellectual worker, having unlimited liability and ownership in the business.

Authorized Company

Private Limited Company (SARL)

A private limited company, commonly known as Société à Responsabilité Limitée - Sàrl and Sàrl-S (SARL), having a minimum share capital of EUR 12,000, is an ideal business structure best suited to small startups and low-capital firms.

Domestic Company

Public Limited Company (SA)

A public limited company, also known as Société Anonyme (SA), is the most common type of business structure, which ensures the transfer of shares, subject to the grant of protection from the debts and obligations of the company.

Branch of a Foreign Company

Partnership (SENC)

Partnership, which stands for sociétés en nom collectif (SENC), is a commercial business structure where the partners are jointly and severally liable for all the profits and liabilities of the firm.

Limited Liability Partnership (LLP)

Cooperative Society (SC)

A cooperative society, known as a Société cooperative (SC), is a type of company owned and controlled by at least 7 members having no minimum share capital and share in profits and losses.

Sole Proprietorship

Holding Company (Soparfi)

The holding company is a legal entity created to own shares or other assets, which enables the establishment of an operative, financial, management, and organizational entity.

Freeport Company

Professional Corporation (SEL)

A professional corporation, which stands for Société d’exercice libéral (SEL), is a type of business entity best suited for professionals such as doctors, lawyers, and accountants.

Freeport Company

Branch and Subsidiary Office

A branch and subsidiary office, which stands for Branche d’une société étrangère, is a type of business option best suited for foreign companies that want to establish their presence on the market.

Freeport Company

Investment Company

An investment company is a specialized, regulated fund structure best suited to institutional and qualified investors, offering flexible investment policies and an authorized external Alternative Investment Fund Manager (AIFM).

Post-Corporate Compliance Assistance in Luxembourg

Finally, you’ve taken the first big step towards the official registration of your company in Luxembourg. Now, it’s time to shift your focus to the ongoing post-corporate compliance assistance in Luxembourg necessary to keep your business fully compliant with Luxembourg regulations:

Obtain Tax Account Number (TAN)

Conduct Board Meeting

Post-corporate compliance assistance helps the applicant to compulsorily conduct the necessary board meetings with all the directors once every year. However, conducting a shareholders’ meeting is also necessary within 6 months of the end of the financial year.

Conduct Board Meeting

Post-corporate compliance assistance helps the applicant to compulsorily conduct the necessary board meetings with all the directors once every year. However, conducting a shareholders’ meeting is also necessary within 6 months of the end of the financial year.

Register for VAT (if applicable)

Bank Account Opening

The entrepreneurs seeking company registration in Luxembourg must apply for a corporate bank account opening with a reputable and recognized bank in Luxembourg.

Bank Account Opening

The entrepreneurs seeking company registration in Luxembourg must apply for a corporate bank account opening with a reputable and recognized bank in Luxembourg.

Maintain Proper Accounting Records

Register Corporate Income Tax

The post-corporate compliance further requires registering for corporate income tax with the Luxembourg Inland Revenue Tax Authority, ensuring tax-optimized company formation in Luxembourg.

Register Corporate Income Tax

The post-corporate compliance further requires registering for corporate income tax with the Luxembourg Inland Revenue Tax Authority, ensuring tax-optimized company formation in Luxembourg.

File Annual Returns

Annual Reporting

Upon compliance with the Luxembourg corporate setup services, the applicants must continue to provide necessary accounting, annual reporting, and bookkeeping services before the time.

Annual Reporting

Upon compliance with the Luxembourg corporate setup services, the applicants must continue to provide necessary accounting, annual reporting, and bookkeeping services before the time.

Hold Annual Shareholders' Meetings

Social Security Registration

The holder of a business permit in Luxembourg must register for a Social Security Number with the Joint Social Security Centre, i.e., Centre Commun de la Sécurité Sociale (CCSS). However, it applies whether you are operating as a self-employed independent or as a hired employee.

Social Security Registration

The holder of a business permit in Luxembourg must register for a Social Security Number with the Joint Social Security Centre, i.e., Centre Commun de la Sécurité Sociale (CCSS). However, it applies whether you are operating as a self-employed independent or as a hired employee.

Renew Licenses and Permits

Hire Employees

After registering your company with the Trade and Companies Register of Luxembourg, the entrepreneurs must hire employees under the conditions imposed by the local labour legislation.

Hire Employees

After registering your company with the Trade and Companies Register of Luxembourg, the entrepreneurs must hire employees under the conditions imposed by the local labour legislation.

Submit Financial Statements

Appoint Statutory Auditor

The entrepreneurs seeking company registration in Luxembourg must appoint a statutory auditor responsible for maintaining the accuracy of the company’s financial statement and securing compliance with local laws and regulations.

Appoint Statutory Auditor

The entrepreneurs seeking company registration in Luxembourg must appoint a statutory auditor responsible for maintaining the accuracy of the company’s financial statement and securing compliance with local laws and regulations.

Comply with FSC Regulations (for GBCs)

Compliance with Corporate & Privacy Laws

The entities having business incorporation in Luxembourg must secure compliance with the Luxembourg corporate and data privacy laws, which safeguard the handling of personal data as specified under the guidelines set by the EU General Data Protection Regulation (GDPR).

Compliance with Corporate & Privacy Laws

The entities having business incorporation in Luxembourg must secure compliance with the Luxembourg corporate and data privacy laws, which safeguard the handling of personal data as specified under the guidelines set by the EU General Data Protection Regulation (GDPR).

Comply with FSC Regulations (for GBCs)

Obtain LNIN

The individuals, such as directors and shareholders, associated with the companies registered in Luxembourg must obtain the Luxembourg National Identification Number (LNIN), which is a unique identification number directly linked to the National Register of Natural Persons.

Obtain LNIN

The individuals, such as directors and shareholders, associated with the companies registered in Luxembourg must obtain the Luxembourg National Identification Number (LNIN), which is a unique identification number directly linked to the National Register of Natural Persons.

Comply with FSC Regulations (for GBCs)

Maintain Trade and Companies Register (RCS)

Luxembourg businesses must maintain the Trade and Companies Register, commonly known as Registre de commerce et des sociétés (RCS), managed by the Luxembourg Business Registers (LBR), which is an official index of all natural persons engaged in trade.

Maintain Trade and Companies Register (RCS)

Luxembourg businesses must maintain the Trade and Companies Register, commonly known as Registre de commerce et des sociétés (RCS), managed by the Luxembourg Business Registers (LBR), which is an official index of all natural persons engaged in trade.

Luxembourg Corporate Formation

Ideas for Business Incorporation in Luxembourg

Given below are the favourable ideas for business incorporation in Luxembourg-

  • Holding with overseas subsidiaries
  • SPF (Société de gestion de Patrimoine Familial) companies
  • Innovative and high-end companies
  • IT and tech business
  • Delivery and logistics business
  • Research and development businesses
  • Biotechnology and healthcare business
  • Licensed companies
  • Finance and trading companies
  • Automotive and aerospace companies
  • Luxembourg regulated and unregulated funds

Why Trust Corpbiz for Company Registration in Luxembourg?

Expert Business Structure Guidance

1500+ Global Entrepreneurs Trust Us

Corpbiz, trusted by 1500+ global entrepreneurs worldwide, offers hands-on experience in company registration in Luxembourg.

Documentation Support

Luxembourg Corporate Setup Services

We at Corpbiz provide Luxembourg corporate setup services to foreign investors looking for Luxembourg company registration in the dynamic and growing economy of Luxembourg.

Saved 20 Lakh+ Hours of Entrepreneurs

10+ Years of Experience

Corpbiz, holding 10+ Years of industry experience, is one of the trusted names offering seamless and hassle-free services for company registration in Luxembourg.

200+ Business Consultants in Luxembourg

Free Initial Consultation

Connect us to get a free 30-minute initial consultation to access the regulatory requirements and corporate structures best suited for company registration in Luxembourg.

1Luxembourg Compliance Solutions

Luxembourg Compliance Solutions

With years of combined experience, Corpbiz ensures delivering reliable Luxembourg compliance solutions, ensuring full compliance and high-end client satisfaction.

24/7 Customer Support

24/7 Customer Support

We offer 24/7 customer support and assistance to streamline the entrepreneurial journey of businesses seeking company registration in Luxembourg.

Local Office Setup

Local Office Setup

Our services at Corpbiz ensure setting up a local office address in Luxembourg, which is mandatory for securing the company’s physical presence in the country.

Post-Incorporation Support Services

Visa Services

At Corpbiz, we ensure providing fast and reliable services for obtaining a business and work visa, which helps secure your investment rights in Luxembourg, often within just 1 working day.

99% Client Retention Rate

Customized and Flexible Pricing

Connect Corpbiz to get customized packages offering flexible pricing, best suited to investors looking for company registration in Luxembourg.

FAQs on Business Incorporation in Luxembourg

The process to register a company in Luxembourg requires foreigners to ensure compliance with the following steps, as discussed below:
  • Step 1: Choose a suitable structure for the company
  • Step 2: Reserve a corporate name for the company
  • Step 3: Prepare the necessary KYC and other documents
  • Step 4: File registration application with the Luxembourg Trade and Companies Register
  • Step 5: Grant of Luxembourg company registration certificate

The cost to register a company in Luxembourg, which starts from EUR 12,000, varies depending on the type and structure of the company. However, this cost does not include incorporation fees, professional fees, and other additional charges needed to start a business in Luxembourg.

SA, which stands for Société Anonyme, is a public limited company that ensures the transfer of shares subject to the grant of protection from the debts and obligations of the company, whereas SARL, which stands for Société à Responsabilité Limitée - Sàrl and Sàrl-S, is a private limited company that forbids small startups and low capital firms from publicly trading their shares.

The entrepreneurs often register their legal business in Luxembourg due to its strategic location, favourable tax environment, business-friendly policies, political & economic stability, diversified workforce, digital infrastructure, and government incentives, which make it an ideal hub for business expansion across Europe and other international markets.

Yes, international entrepreneurs consider it easy to start a business in the pro-business and stable economy of Luxembourg. However, the country’s strategic location and incentives offered by the government help make it an ultra-attractive destination for both local and foreign investors intending to start a business in Luxembourg.

Yes, as of tax year 2025, companies having a taxable income lower than EUR 175,000 are subject to corporate income tax (CIT) at a rate of 14%. However, the CIT does not apply to tax-transparent entities, such as general or limited partnerships or European Economic Interest Groups, unless they are subject to the reverse-hybrid rules.

To get a Luxembourg work permit, the applicant must initially secure a job offer from a recognized employer based in Luxembourg and then submit their visa application to the nearest Luxembourg embassy or consulate for further processing.

The minimum share capital needed for company registration in Luxembourg, which is EUR 12,000, varies based on the type of company officially registered.

Yes, most businesses in Luxembourg require obtaining special permits and licenses, such as a business permit (known as Autorisation d'établissement), construction permit, fire permit, environmental permit, health and safety permit, and other industry-specific licenses needed to legally operate in Luxembourg.

The best structures for creating a trading business in Luxembourg are Société Anonyme (SA)- a Public Limited Company, and Société à Responsabilité Limitée (SARL)- a Private Limited Company, which enable businesses to carry out commercial activities and transfer funds in Luxembourg.

No, generally, no resident director is required to start a company in Luxembourg. However, having a resident director helps businesses in facilitating communication with local authorities and enhancing the company’s credibility in Luxembourg.

Yes, you can open a branch office or a subsidiary of a foreign company in Luxembourg. However, a subsidiary is an independent structure from the parent company, which enables running under the rules of joint stock companies, whereas a branch office is not a separate company, operating as an extension of the parent company.

Yes, it is mandatory to hire a notary to draft and prepare the company’s statutes, ensuring compliance with all the legal requirements needed to incorporate an SA, i.e., Société Anonyme.

The tax incentives and reliefs offered to businesses operating in Luxembourg are as follows:
  • Investment tax credits
  • Incentives for Research and Development
  • Favourable tax treatment for income generated from intellectual property
  • National interest deduction on equity
  • Capital gains and financing
  • Tax reliefs on new foreign investments
  • Incentives for investment in green and sustainable technologies
  • Double tax treaties with more than 80 countries

The process to register a company in Luxembourg typically takes around 2 to 4 weeks of timeframe, varying depending on the complexity of the company structure chosen and the completeness of necessary documents.

Luxembourg is often regarded as a tax haven due to its territorial tax system, which implies that foreign-sourced income is exempted from being taxed locally. However, the country forbids levying stamp duty, withholding taxes on interest payments, or royalty payments in many cases.

The diverse business opportunities best suited in Luxembourg are financial and fintech services, followed by logistics and sustainable delivery businesses, IT and tech-enabled businesses, healthcare businesses, and many more.

Authors

Written by Aarya Pokharel. Last updated on Nov 11 2025, 09:56 PM

Aarya Pokharel brings 3 years of solid experience in legal research and compliance. Her expertise spans tax filing, secretarial compliances, and advisory services, with a strong focus on delivering precise legal research and strategic advisory support.

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