Cerity Global

Legal Entity Setup in Luxembourg

Complete Luxembourg Entity Incorporation with Ongoing HR, Payroll, Accounting, Tax, and Compliance Support

Last Updated: August 13, 2025

Luxembourg

Country Overview

Luxembourg is one of Europe’s most attractive business jurisdictions, renowned for its political stability, strategic location, and sophisticated financial services sector. As a founding member of the European Union, Luxembourg offers exceptional access to European markets while maintaining a business-friendly regulatory environment. The economy is highly developed and diversified and the key growth sectors include banking and finance, investment funds, technology, logistics, and space industry. Luxembourg consistently ranks among the world’s most competitive economies and offers one of the highest GDP per capita globally.

Capital City

Luxembourg City

Language

Luxembourgish, French, German (all official), English

Currency

Euro (EUR)

Business Hubs

Luxembourg City, Esch-sur-Alzette, Differdange, Dudelange

Expand Your Business in Luxembourg

Unlock growth opportunities in Luxembourg with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Luxembourg’s often complex regulatory landscape with clarity and efficiency.

From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.

Need to hire quickly before your entity is set up? We offer interim EOR services in Luxembourg, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR structure to your own legal entity, without disrupting payroll or compliance.

Our experts stay ahead of regulatory changes to keep your operations aligned with Luxembourg’s employment and tax laws, helping you scale confidently and compliantly.

Legal Entity Setup

Types of legal entity setups for international expansion in Luxembourg

Société à Responsabilité Limitée (SARL)

The most popular form of private limited liability company for foreign investment in Luxembourg. A SARL can be set up by one or more shareholders, with a maximum of 100, and requires a minimum share capital of €12,000. The liability of shareholders is limited to their capital contributions, offering strong protection for investors. This entity type provides excellent flexibility for business operations and is ideal for most international businesses seeking European market access. Minimum capital €12,000 fully paid up.

Société à Responsabilité Limitée Simplifiée (SARL-S)

A simplified SARL for natural persons only with capital from €1 to < €12,000 (convert to a standard SARL once capital reaches €12,000). No turnover cap in law; fewer setup formalities. Not available to legal-entity shareholders.

Société Anonyme (SA)

A joint-stock company is suitable for larger operations requiring significant capital investment or planning public offerings. Requires minimum share capital €30,000; all shares must be subscribed and at least 25% paid up at incorporation; board-led governance suitable for larger raises and listings.

Branch Office (Succursale)

Allows foreign companies to conduct business activities in Luxembourg under the parent company’s name. Requires registration with the Trade and Companies Register (RCS) and compliance with local regulations. No minimum capital requirement, but the branch operates under the liability of the parent company and must maintain local accounting records.

Representative Office (Bureau de Représentation)

A limited presence allowing foreign companies to conduct market research, liaison activities, and represent the parent company’s interests. Cannot engage in commercial activities or generate revenue in Luxembourg. Suitable for companies exploring the Luxembourg and EU markets before full establishment.

Resident Director Requirements

Private Limited Company (SARL)

Luxembourg law does not impose a statutory residence requirement for directors/managers. However, to secure tax residency and demonstrate effective management in Luxembourg, having local management/substance is strongly recommended. This requirement ensures adequate local representation and compliance oversight. Foreign nationals can serve as managers with appropriate residence status.

Joint-Stock Company (SA)

Luxembourg law does not impose a statutory residence requirement for directors/managers. However, to secure tax residency and demonstrate effective management in Luxembourg, having local management/substance is strongly recommended.

Branch Office

Luxembourg law does not impose a statutory residence requirement for directors/managers. However, to secure tax residency and demonstrate effective management in Luxembourg, having local management/substance is strongly recommended. This person is responsible for the branch’s activities and compliance with Luxembourg regulations, including filing requirements and tax obligations.

Representative Office

Must appoint a chief representative who is resident in Luxembourg and responsible for the office’s activities and compliance with Luxembourg regulations. Registration required with relevant Luxembourg authorities.

Bank Account Setup

Luxembourg bank account setup benefits from the country’s world-renowned banking sector:

Bank

Why choose Cerity Global’s Legal Entity Setup Service?

Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.

Why Luxembourg?

Reasons you should setup legal entity in Luxembourg:

Cerity Global ensures your business expansion in Luxembourg is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.

Economic figures are subject to change based on quarterly reports and market conditions.

Cerity Global as your legal entity setup partner in Luxembourg

Cerity Global combines deep local knowledge with proven expertise to make your Luxembourg business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Luxembourg.

Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.

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