Luxembourg

Luxembourg

Company Formation in Luxembourg

Luxembourg

Formation Time
1–3 weeks
Min. Capital
€12,000 (Sàrl)
Corporate Tax
24.94% (combined)
Foreign Ownership
100%

Overview

Luxembourg is Europe's premier fund domicile and a major holding company jurisdiction. It hosts more than €5.8 trillion in fund assets and is the preferred EU hub for private equity, investment funds (UCITS and AIFs), securitisation vehicles, and family offices. The SOPARFI holding company structure offers a robust participation exemption.

#1 EU fund domicile
Participation exemption
86 treaties
SOPARFI structures

Why Choose Luxembourg

1

Europe's #1 fund domicile — €5.8 trillion in AUM

2

Participation exemption for holding companies

3

86 double tax treaties

4

IP box regime with 80% exemption

5

EU and Eurozone member

6

Multilingual workforce (Luxembourgish, French, German, English)

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
Sàrl100%1€12,00024.94% combinedSMEs, holding, fund management
SOPARFI100%3 (if SA)€30,000 (SA)Participation exemption on qualifying holdingsHolding companies, PE/VC structures

Step-by-Step Formation Process

1

Name Check

1 day

Verify with RCS Luxembourg.

2

Notarial Deed / Private Deed

1–2 weeks

SA requires notary; Sàrl can use private deed.

3

RCS Registration

3–5 days

Register with Registre de Commerce et des Sociétés.

4

Tax & VAT Registration

1–2 weeks

Register with Administration des Contributions Directes.

Costs & Fees

Government / License FeeEUR 500+
Our Service FeeUSD 4,500+
Annual RenewalUSD 3,500+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Luxembourg has a sophisticated banking sector with 120+ banks.

Account Opening Time
2–4 weeks
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

BGL BNP ParibasBanque de LuxembourgING LuxembourgBCEE

Tax Overview

Corporate Tax
24.94% combined (CIT + municipal + solidarity)
Personal Income Tax
0–42%
VAT / Sales Tax
17%
Capital Gains Tax
Exempt under participation exemption
Withholding Tax
15% on dividends (exempt under EU Parent-Subsidiary Directive)
Double Tax Treaties
86 countries

Participation exemption: 100% exemption on dividends and gains from qualifying holdings (10%+ or €1.2M acquisition cost, held 12+ months).