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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~51 days
Setup Time
~$2,750
Setup Cost
24.94%
Corporate Tax
100%
Foreign Ownership
#72
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
Private Limited Liability Company Societe a Responsabilite Limitee (SARL) | 12,000 EUR | 100% | Limited | 1 | Most popular entity for SMEs and holding companies - simple formation, flexible management, strong liability protection |
Public Limited Company Societe Anonyme (SA) | 30,000 EUR | 100% | Limited | 1 | Larger enterprises, listed companies, and regulated financial services - required for certain CSSF-regulated activities |
Special Limited Partnership Societe en Commandite Speciale (SCSp) | None | 100% | Hybrid | 2 | Private equity and venture capital fund structures - flexible, tax-transparent vehicle widely used for alternative investment funds |
Branch of Foreign Company Succursale | None | 100% | Unlimited | 0 | Foreign companies establishing direct operations in Luxembourg without creating a separate legal entity |
Draft articles of incorporation
Prepare the statuts before a Luxembourg notary public (notaire). Notarial deed required for SARL and SA formation.
3-7 days
~$2,000
Notaire (Luxembourg Notary)
Deposit share capital in bank
Open a blocked account at a Luxembourg bank and deposit the minimum share capital (EUR 12,000 for SARL, EUR 30,000 for SA)
1-5 days
Free
Commercial Bank
Execute notarial deed of incorporation
Sign the articles of incorporation before the notary who will file with the Luxembourg Trade and Companies Register (RCS)
1-2 days
~$500
Notaire
Register with RCS
The notary files the incorporation deed with the Registre de Commerce et des Societes (RCS) and publishes in the RESA (official gazette)
3-7 days
~$200
RCS (Trade and Companies Register)
Obtain business permit
Apply for the autorisation d'etablissement (business permit) from the Ministry of the Economy - required before commencing operations
5-20 days
~$50
Ministry of the Economy
Register with tax authorities (ACD)
Register with the Administration des Contributions Directes for corporate income tax, municipal business tax, and net wealth tax
1-5 days
Free
ACD (Administration des Contributions Directes)
Register for VAT
Register with the Administration de l'Enregistrement, des Domaines et de la TVA for VAT compliance
1-5 days
Free
AED (TVA Administration)
$2570/mo
Minimum Wage
$5500/mo
Average Wage
40 hrs/week
Work Hours
26 days/year
Paid Leave
4 weeks/year
Severance
14.24% of salary
Employer Social Security
12.45% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: EU/EEA citizens have free movement. Non-EU workers need a combined work and residence permit. Cross-border workers from France, Belgium, and Germany represent over 45% of the workforce.
Work Permit Process: Non-EU workers require a combined work and residence permit applied for through the Immigration Directorate. Employer must demonstrate the position cannot be filled by EU/EEA candidates. Intra-corporate transferee permits available.
#72/190
Ease of Business Rank
17 days
Starting a Business
26 days
Registering Property
321 days
Enforcing Contracts
78/100
Corruption Perception
99%
Internet Penetration
EUR
Currency
UTC+1
Time Zone
18
Retail (months)
16
F&B (months)
14
Tech (months)
20
Manufacturing (months)
12
Services (months)