Incorporate · Europe

Company Formation in Luxembourg

Established EU holding and fund domicile with a deep treaty network. Review the legal form, tax position, treaty network and indicative cost, then talk to one team that structures it end to end.

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50+ yrs combined experience
15+ jurisdictions

Corporate tax: Approx. 24.9% combined
VAT / GST: 17%
Formation: 2-4 weeks
Foreign ownership: 100% permitted
Tax treaties: 85+
Setup cost: USD 6,000 - 15,000

At a glance

Common entity: Private Limited Company (SARL)
Formation time: 2-4 weeks
Setup cost: USD 6,000 - 15,000
Annual cost: USD 5,000 - 12,000
Foreign ownership: 100% permitted
Tax treaties: 85+

Holding companyFunds and investmentIP and licensingTradingConsulting and services

Best for

EU holding structures
Investment and private-equity funds
IP and financing vehicles with substance

Less ideal for

Low-budget setups
Founders wanting a treaty-light offshore shell

Legal and formation

Legal system	Civil law
Common entity types	Private Limited Company (SARL), Public Limited Company (SA)
Formation timeline	2-4 weeks
Minimum capital	EUR 12,000 (SARL) or EUR 30,000 (SA)
Foreign ownership	100% permitted
Minimum shareholders	1
Minimum directors	1
Local presence	Registered office in Luxembourg required; local substance advised for tax residence
Public registry	Directors and beneficial owners on the trade register and RBE register
Audit	Audit required above statutory size thresholds

Tax profile

Corporate income tax	Approx. 24.9% combined (corporate income tax, solidarity surcharge and municipal business tax in Luxembourg City)
VAT / GST	17%
Withholding, dividends	15% (0% under the participation exemption or EU parent-subsidiary rules)
Withholding, interest	0%
Withholding, royalties	0%
Capital gains	Within corporate tax; exempt under the participation exemption
Territorial system	No
CFC rules	Yes
Participation exemption	Broad participation exemption on qualifying dividends and gains (10%+ or EUR 1.2M holdings)

Every figure above is indicative. Rates, thresholds, minimum capital, ownership rules and timelines change and vary by activity, licence and structure. They are confirmed with the relevant authority and in a tailored quote before you rely on them. This is general information, not legal or tax advice.

How to set up in Luxembourg

1
Reserve the company name and define the corporate object
2
Draft and notarise the articles of association before a Luxembourg notary
3
Deposit the share capital and appoint directors
4
Register with the Trade and Companies Register (RCS) and the RBE beneficial-owner register
5
Register for VAT and taxes, then open a corporate bank account

Banking reality

Traditional Luxembourg banks are conservative and expect genuine local substance and a clear economic rationale, so onboarding can take several weeks; EMIs are a faster fallback for operating accounts.