Business Startup in Luxembourg: The Right Way, From Day One
Set up a business in Luxembourg the right way. Your business vehicle, your registration pathway, your Luxembourg bank account. All coordinated from a single point of contact.
- SArl or SA company formation with notary coordination included
- Full RCS registration, business address, and statutory documents
- Luxembourg business bank account sourced and opened
Why Start a Business in Luxembourg and Why It Matters
1. Luxembourg Has One of the Strongest Business Environments in the EU
Luxembourg offers a stable and transparent legal system. It ranks among Europe’s top countries for ease of doing business. This clear regulatory framework helps founders avoid surprises and scale their commercial activities smoothly.
2. The Tax Rates Are Competitive When Structured Properly
Luxembourg has the lowest standard VAT rate in the EU at 17%. It also offers great tax exemptions for holding companies. A vast network of tax treaties helps businesses reduce costs on international profits.
3. A Luxembourg Company Gives You Credibility Across the EU
A Luxembourg-registered company builds trust across Europe. As a core EU member, it helps you reach European investors, sign contracts with major partners, and win new clients from day one.
Business Permit Rules in Luxembourg: What Every Founder Must Know
Our specialists work together as a trusted advisor and legal counsel to ensure that you operate your business in Luxembourg in a legally optimal way.
Setting Up a Company in Luxembourg: A Clear Process from Start to Finish
A strategic, end-to-end approach to help your business establish, grow, and expand globally from Luxembourg to international markets.
Luxembourg and the UK: Two Very Different Business Environments
LUXEMBOURG BUSINESS ENVIRONMENT
17%
Standard VAT Rate the Lowest in the EU
- 80+ double tax treaties worldwide
- EU member state with full single market access
- Participation exemption on qualifying dividends and capital gains
- 23.87% combined corporate tax rate in Luxembourg City
UK BUSINESS
ENVIRONMENT
25%
Corporate Tax Rate
- Additional dividend taxation may apply
- Post-Brexit loss of EU single market access
- Higher overall compliance burden
- No participation exemption equivalent for most structures
What Our Luxembourg Company Formation Service Covers
Business Structures in Luxembourg
Which Entity Type is Right for You?
How We Help You Set Up Your Luxembourg Business
01
Planning and Preparation
Phase 1 Includes
- Choosing the right company structure: SArl, SA, or SE
- Confirming share capital, shareholders, and management
- Drafting the articles of association and memorandum
- Verifying business permit requirements for your sector
- Confirming the registered office address in Luxembourg
YOU RECEIVE:
A written formation plan, full document checklist, and clear cost summary before any work begins.
02
Formation and Official Registration
Phase 2 Includes
- Share capital deposit with a Luxembourg credit institution
- Execution of constitutional documents before a Luxembourg notary
- Filing with the Registre de Commerce et des Societes
- Obtaining your Luxembourg business identifier and VAT number
- Business permit application where required for your sector
YOU RECEIVE:
Certificate of incorporation, RCS extract, registered articles of association, and your official Luxembourg company number.
03
Post-Incorporation and Operations
Phase 3 Includes
- Luxembourg business bank account opening
- VAT registration if applicable to your activity
- Accounting and bookkeeping framework setup
- Social security registration if hiring employees
- Ongoing annual compliance and advisory support
YOU RECEIVE:
A fully operational Luxembourg company with banking, VAT, and compliance foundations in place and ready to trade.
IS LUXEMBOURG
THE RIGHT JURISDICTION FOR YOUR BUSINESS?
FAQs: Starting a Business in Luxembourg
What is the corporate tax rate in Luxembourg?
The combined rate in Luxembourg City is 23.87%, covering national CIT at 17%, a 7% solidarity surcharge, and municipal business tax of 6.75%.
Does Luxembourg tax dividends and capital gains at the company level?
The participation exemption allows qualifying holding companies to receive dividends and capital gains free of tax. Withholding tax on dividends is 15%, often reduced under treaties.
What is the VAT rate in Luxembourg?
Luxembourg’s standard VAT rate is 17%, the lowest in the EU. Reduced rates of 14%, 8%, and 3% apply to specific goods and services.
How long does it take to register a company in Luxembourg?
Typically four to eight weeks from instruction to RCS registration. Business permit processing and banking can add a further four to twelve weeks.
What documents are required to form a Luxembourg company?
Certified identity documents for all shareholders and directors, a Luxembourg registered office address, proof of share capital deposit, and drafted articles of association.
How much does it cost to set up a business in Luxembourg?
Year-one costs for an SArl run €8,000 to €20,000. Ongoing annual compliance typically costs €5,000 to €15,000 depending on transaction volume.
Do I need a local director or permit holder in Luxembourg?
Not a director, but the business permit must be held by a qualified individual. We can source and coordinate a locally approved responsible person.
Can a UK national form a company in Luxembourg?
Yes. UK nationals can form and own a Luxembourg company without restriction. We work with UK founders regularly and manage the full formation process.
Do I need to relocate to Luxembourg to own and run a company there?
No. Ownership and personal tax residency are separate. Many founders operate Luxembourg companies without relocating. Relocation benefits depend on your individual circumstances.
Does Luxembourg have a startup visa for non-EU nationals?
Luxembourg has no dedicated startup visa. Non-EU nationals typically need a residence permit for self-employment or business activity. Requirements vary by nationality.
