How to create a company in Luxembourg (short answer)
To create a company in Luxembourg in 2026, you choose a legal form (a SARL or SARL-S for most founders), draft the articles of association, register the company with the Trade and Companies Register (RCS), file your beneficial owners with the RBE, and obtain the business permit before trading. Since Bill 8669, the SARL minimum capital must be subscribed at incorporation but its payment can be deferred for up to twelve months, which removes the old requirement to fund a bank account first.
The realistic timeline runs from a few days for a well prepared SARL-S to two to four weeks for an SA. Bank KYC and permit issuance are the only real variables.
Why create a company in Luxembourg in 2026?
Founders create a company in Luxembourg for three structural reasons: a competitive tax architecture (a combined 23.87% corporate rate in Luxembourg City for 2026, plus the participation exemption for holdings), direct access to the EU single market and more than 80 tax treaties, and the credibility a Luxembourg vehicle carries with banks, investors, and counterparties.
The honest counterpoint: Luxembourg is not the cheapest place to incorporate, and substance is not optional. The value is in the structure and the access, not in low running cost.
Is Luxembourg a good country for startups and entrepreneurs?
Luxembourg is a good country for startups and entrepreneurs whose goal is EU market access, a holding or financing structure, or a credible cross-border base. The SARL-S was built specifically to lower the barrier for first-time founders, with €1 minimum capital and no notary. It is less suited to a founder chasing only the lowest running cost, because compliance obligations are broadly the same for small and large companies, which is exactly why automated onboarding has become the decisive cost lever.
Why international founders choose Luxembourg companies
International founders choose Luxembourg companies for defensibility and optionality: 100% foreign ownership, no nationality requirement, legal persons allowed as managers of a SARL or SA, and a mature consolidation and reporting environment for multi-entity groups. A single Luxembourg company is frequently the structural anchor for cross-border investment.
How to create a company in Luxembourg, step by step
Creating a company in Luxembourg follows five steps: choose the legal form, prepare the documents, arrange the bank account, register with the RCS, and obtain the business permit. The sequence changed in 2026. For a minimum-capital SARL, the bank account no longer has to come first.
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Step 1: Choose the right Luxembourg company structure
The first step to create a company in Luxembourg is choosing the right structure, because it sets your capital, liability, notary requirement, and permitted activities. Four forms cover almost every case.
| Form | Minimum capital | Notary | Best for | Key constraint |
| SARL-S | €1 (capped below €12,000) | No, private deed | Solo, first-time founders | Natural persons only, no holding or financial activity |
| SARL | €12,000, payment now deferrable | Yes | Most operating businesses | Shares not freely transferable |
| SA | €30,000, 25% paid up front | Yes | Larger ventures, capital raising | No capital deferral under Bill 8669 |
| SOPARFI | As the SARL or SA beneath it | Yes | Holding and financing participations | A tax characterisation, not a separate form |
SARL-S Luxembourg
The SARL-S (simplified private limited company) is the cheapest way to create a company in Luxembourg: €1 minimum capital, no notary, formation by private deed. The constraints are deliberate. It can be formed only by a natural person, no individual may hold shares in more than one SARL-S, and holding, financial, and insurance activities are prohibited, so it can never be a SOPARFI. The company allocates 5% of annual profit to a legal reserve until the reserve plus capital reaches €12,000. Treat it as a launch ramp. When the business scales, you convert to a standard SARL by notarial deed, and that conversion has a cost worth budgeting on day one.
SARL Luxembourg
The SARL (private limited company) is the default way to create a company in Luxembourg, used by around two thirds of businesses, with €12,000 minimum capital, a notarial deed, and one to 100 shareholders who may be natural or legal persons of any nationality. Under Bill 8669, the €12,000 minimum must still be fully subscribed at incorporation, but its payment can be deferred for up to twelve months. Any capital above the minimum, any share premium, and any contribution in kind must still be paid in full at incorporation.
SA Luxembourg
The SA (public limited company) is the structure to create a company in Luxembourg for larger ventures, capital raising, or a future listing, with €30,000 minimum capital, of which at least 25% is paid at incorporation, and a notarial deed. Shares are freely transferable. Note the asymmetry: the Bill 8669 capital deferral applies to the SARL and SARL-S, not to the SA, so the bank account remains a gating item for this form.
SOPARFI Luxembourg
A SOPARFI is not a separate way to create a company in Luxembourg but a tax characterisation: a fully taxable SARL or SA used to hold and finance participations under the participation exemption. Where conditions are met, qualifying dividends and capital gains can be exempt while the company keeps access to the EU directives and the treaty network. Key thresholds include a minimum 10% holding or €1.2 million acquisition cost for dividends, with a twelve-month holding condition. Because it is built on a SARL or SA, a SOPARFI cannot be a SARL-S.
Step 2: Prepare the documents for Luxembourg company formation
To prepare the documents for Luxembourg company formation, you assemble the articles of association, certified ID and proof of address for each shareholder and director, beneficial owner data for the RBE, and a precise business activity description. For a SARL or SA, the notary drafts and authenticates the articles. For a SARL-S, the articles can be prepared by private deed. The quality of the KYC file, not the drafting, is what actually determines speed.
Step 3: Open a corporate bank account in Luxembourg
Opening a corporate bank account in Luxembourg used to be the bottleneck to create a company, but Bill 8669 now lets minimum-capital SARLs incorporate first and bank afterwards. The account is still required for operations and to pay in the deferred capital within twelve months, and full AML checks still apply at incorporation. For an SA, the account remains a prerequisite because the 25% payment is due on day one.
Step 4: Register the company with the Luxembourg RCS
To register a company in Luxembourg, you file with the Trade and Companies Register (RCS) through Luxembourg Business Registers, with publication in the RESA. For a SARL or SA, the notary files the deed; for a SARL-S, the founder or an authorised agent files the private deed. Two filings sit alongside the RCS and are easy to miss: the mandatory beneficial-owner filing with the RBE, and registration with the Joint Social Security Centre (CCSS) once anyone is employed.
Step 5: Apply for a Luxembourg business permit
To create a company in Luxembourg that trades legally, you apply for the business permit (autorisation d’etablissement) from the Ministry of the Economy through MyGuichet.lu. The permit requires professional integrity, often a relevant qualification depending on the activity, a fixed establishment in Luxembourg, and an effective manager. Alongside bank KYC, permit issuance is the second variable that sets your timeline. A misaligned activity description is the most common avoidable delay.
What documents are required to create a company in Luxembourg?
The documents required to create a company in Luxembourg are a valid passport or ID and proof of address for each shareholder and director, beneficial ownership information for the RBE, the articles of association, and a clear business activity description.
Passport and proof of address
A passport and proof of address are required for each shareholder and director to create a company in Luxembourg, feeding the mandatory KYC and AML file. For non-resident parties, certified or apostilled copies may be needed, and identity can increasingly be verified through remote electronic verification.
Shareholder and director information
The shareholder and director information required to create a company in Luxembourg covers identity, residence, shareholding, the powers of each manager, and the full beneficial ownership chain. For corporate shareholders, you add the entity’s registration documents and its own beneficial owners. An incomplete ownership chain is a frequent cause of AML delay.
Business activity description
The business activity description required to create a company in Luxembourg connects three things at once: the corporate purpose in the articles, the business permit application, and the future VAT and tax treatment. A vague description forces rework across all three, so it is worth getting right before filing.
How long does it take to create a company in Luxembourg?
Creating a company in Luxembourg takes from a few days for a well prepared SARL-S to two to four weeks for an SA. The two variables that set the timeline are bank KYC and business-permit issuance, not the statutory filing.
| Form | Typical timeline (clean file) | Main driver |
| SARL-S | A few days to around two weeks | Permit and KYC |
| SARL | Around one to two weeks | Notary, permit, KYC |
| SA | Around two to four weeks | Capital funding plus notary, permit, KYC |
SARL-S incorporation timeline
The SARL-S incorporation timeline is the fastest way to create a company in Luxembourg: a few days for a clean file, thanks to the private deed and the new capital deferral, with the permit and KYC as the gating items.
SARL incorporation timeline
The SARL incorporation timeline to create a company in Luxembourg is around one to two weeks, now that Bill 8669 has removed the bank account from the critical path for minimum-capital companies.
SA incorporation timeline
The SA incorporation timeline to create a company in Luxembourg is around two to four weeks, because the 25% capital payment is due at incorporation and is not eligible for the Bill 8669 deferral.
How much does it cost to create a company in Luxembourg?
Creating a company in Luxembourg costs from a few hundred euros for a SARL-S, which needs no notary, to several thousand euros for a SARL or SA, driven by notary and registration fees. The larger number founders forget is the recurring cost of accounting and compliance, which is broadly similar whether the company is small or large, and which automated onboarding is now the main lever to reduce.
Can a foreigner create a company in Luxembourg?
Yes. A foreigner can create a company in Luxembourg with 100% ownership, no nationality requirement, and the right to be a non-resident, subject to KYC, AML, and the substance behind the business permit. The practical requirements are substance and compliance, not nationality.
Can a non-resident open a Luxembourg company remotely?
Yes. A non-resident can open a Luxembourg company remotely using electronic filing, electronic signatures, and remote KYC, and the removal of the pre-incorporation bank account for minimum-capital SARLs reduces the need for physical presence further. The limits that remain are the AML standard, which applies in full, and the business-permit substance requirement. A company with no genuine establishment is not viable.
Can international entrepreneurs use a Luxembourg holding company?
Yes. International entrepreneurs can use a Luxembourg holding company (SOPARFI) to hold and finance participations, benefiting from the participation exemption on qualifying dividends and capital gains, the EU directives, and the treaty network. For groups, a Luxembourg holding company is often the anchor for cross-border investment and consolidation.
How AI is transforming company formation in Luxembourg
AI is transforming company formation in Luxembourg by automating the layer around the regulated acts: KYC, document extraction, beneficial-owner mapping, accounting onboarding, and compliance monitoring. It does not replace the notary, the RCS filing, or the permit. The honest framing matters, because that is where time and cost have always leaked.
AI-powered onboarding and compliance automation
AI-powered onboarding compresses the slowest part of company formation in Luxembourg, KYC and AML verification, from days to hours while raising the compliance standard, because nothing is skipped. A model reads identity documents, extracts the data, and flags inconsistencies before they reach a human reviewer.
AI accounting and company formation workflows
AI accounting workflows turn Luxembourg company formation and bookkeeping into one continuous pipeline. The incorporation data configures the chart of accounts, the VAT regime (including the small-enterprise exemption below €50,000 turnover), the filing deadlines, and the reporting, so formation and accounting stop being two disconnected projects.
Digital incorporation and automated compliance
Digital incorporation in Luxembourg combines electronic RCS filing, electronic signature, remote KYC, and the Bill 8669 decoupling of formation from the bank account. Automated compliance monitoring then tracks RBE updates, annual accounts, VAT returns, and permit conditions continuously, which lowers the manual error rate that triggers penalties.
What are the advantages of AI-powered company formation in Luxembourg?
The advantages of AI-powered company formation in Luxembourg are four: faster incorporation, reduced administrative work, better compliance management, and automated accounting onboarding.
Faster incorporation
Faster incorporation is the first advantage of AI-powered company formation in Luxembourg, because automation removes the manual document and verification bottleneck and aligns with the new capital deferral. Speed comes from eliminating waiting, not from cutting compliance.
Reduced administrative work
Reduced administrative work is the second advantage of AI-powered company formation in Luxembourg: data is captured once and reused across the articles, the RBE, the permit, and the accounting setup, so the founder provides information a single time.
Better compliance management
Better compliance management is the third advantage of AI-powered company formation in Luxembourg: automated monitoring tracks every recurring obligation, from RBE filings to VAT returns, and surfaces issues before deadlines rather than after penalties.
Automated accounting onboarding
Automated accounting onboarding is the fourth advantage of AI-powered company formation in Luxembourg: the incorporation data flows directly into the accounting system, so the company is operational and compliant from day one rather than after a separate onboarding cycle.
Bill 8669: the 2026 Luxembourg share capital reform
Bill 8669, adopted by the Luxembourg Chamber of Deputies on 28 April 2026, lets founders defer payment of the SARL and SARL-S minimum capital for up to twelve months, while the capital must still be fully subscribed at incorporation. The practical effect is that a minimum-capital SARL can now be incorporated without first opening and funding a bank account, which removes the historical bottleneck created by KYC and AML account-opening delays.
The guardrails matter. Capital above the €12,000 minimum, share premiums, and contributions in kind must still be paid in full at incorporation. The SA is excluded. AML and CFT checks remain in force at incorporation. The reform applies to SARLs and SARL-S incorporated after entry into force, following publication in the RESA.
Why AI-powered accounting firms are growing in Luxembourg
AI-powered accounting firms are growing in Luxembourg because automation inverts the unit economics of serving small companies, which carry nearly the same compliance burden as large ones. The firms scaling fastest treat formation, accounting, and compliance as one continuous system rather than three separate services. That is the model behind the digital fiduciary platform Bookkeeper.lu, operated alongside Financial Services Luxembourg SARL-S (RCS B213987, autorisation d’etablissement 10077274). The differentiator is the combination of a comptable autorisé licensed under the Law of 2 September 2011, a multi-entity consolidation background, and an automated pipeline that runs from incorporation through ongoing compliance.
Conclusion: create a company in Luxembourg with AI-powered digital onboarding
To create a company in Luxembourg in 2026, combine the right legal form with AI-powered onboarding. Bill 8669 removed the bank-account bottleneck by allowing the minimum capital to be subscribed at incorporation and paid within twelve months. AI removed the document bottleneck by automating KYC, onboarding, and accounting setup. The regulated acts stay regulated: the notarial deed, the RCS registration, the business permit, and the full AML standard. Everything around them is faster.
Financial Services Luxembourg SARL-S, operating the platform Bookkeeper.lu, structures and incorporates Luxembourg companies with AI-powered onboarding and continuous compliance, supervised by a comptable autorisé. The first step is a structuring decision, not a form.
Frequently asked questions
How much does it cost to create a company in Luxembourg? Creating a company in Luxembourg costs from a few hundred euros for a SARL-S to several thousand for a SARL or SA, plus the recurring cost of accounting and compliance, which automated onboarding reduces.
Do I need a notary to create a company in Luxembourg? You need a notary to create a SARL or SA in Luxembourg. You do not need a notary for a SARL-S, which is formed by private deed.
What is the minimum capital to create a company in Luxembourg? The minimum capital to create a company in Luxembourg is €1 for a SARL-S, €12,000 for a SARL, and €30,000 for an SA. Since Bill 8669, the SARL and SARL-S minimum capital can be subscribed at incorporation and paid within twelve months.
Can a foreigner create a company in Luxembourg? Yes. A foreigner can create a company in Luxembourg with full foreign ownership and no nationality requirement, subject to KYC, AML, and the substance behind the business permit.
Do I need to live in Luxembourg to create a company there? No. You do not need to live in Luxembourg to create a company there, but the company needs a genuine establishment and an effective manager, and the business permit requires real substance.
How long does it take to create a company in Luxembourg? Creating a company in Luxembourg takes from a few days for a SARL-S to two to four weeks for an SA, with bank KYC and permit issuance as the variables.
What is the cheapest way to create a company in Luxembourg? The cheapest way to create a company in Luxembourg is the SARL-S, with €1 minimum capital and no notary, best understood as a launch form that converts to a SARL once the business scales.
What corporate tax will my Luxembourg company pay? A Luxembourg company pays a combined rate of about 23.87% in Luxembourg City for 2026. A qualifying holding structure (SOPARFI) can reduce the effective rate on participation income through the participation exemption.
