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Luxembourg, known for its favorable business environment and attractive tax regime, offers a wide range of legal structures for entrepreneurs and investors. Choosing the right legal form is a critical step in ensuring the success of your project. At AR SERVICES, our mission is to guide you through this strategic decision with our chartered accounting and tax expertise, ensuring the optimal setup for your business activities.

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The different types of companies in Luxembourg

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1. Limited liability company (SARL)

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• Features: The SARL is ideal for small and medium-sized businesses. It can be formed by one or more persons (up to 100 shareholders). The liability of shareholders is limited to their contributions, thus protecting their personal assets.

• Advantages: simple management, minimum share capital of 12,000 euros, flexibility for new shareholders.

• Ideal for: entrepreneurs looking to limit personal liability while enjoying a flexible structure.

 

2. Public limited company (SA)

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• Features: Suitable for large companies, the SA requires a minimum share capital of 30,000 euros. Shares are freely transferable, facilitating capital raising.

• Advantages: ability to access financial markets, flexibility in managing shares and capital.

• Ideal for: large corporations, multinationals, and companies requiring significant capital raises.

 

3. Simplified limited liability company (SARL-S)

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• Features: The SARL-S is a simplified version of the SARL, created with a minimum share capital of one euro, and designed for individual entrepreneurs.

• Advantages: low start-up costs, streamlined creation process, ideal for start-ups.

• Ideal for: individual entrepreneurs and start-ups looking to minimize initial costs.

 

4. Limited partnership (SCS)

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• Features: The SCS consists of general partners (with unlimited liability) and limited partners (liable only up to their contributions). It is primarily used in investment funds.

• Advantages: flexibility in structuring capital and voting rights, tax transparency.

• Ideal for: investment funds and projects requiring a flexible structure.

 

5. Partnership limited by shares (SCA)

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• Features: Combines elements of a public limited company and a limited partnership. General partners manage the company with unlimited liability, while limited partners have limited liability.

• Advantages: suitable for complex projects requiring specific structuring.

• Ideal for: wealth management and investment funds.

 

6. Civil real estate company (SCI)

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• Features: Primarily used for the management of real estate assets, the SCI allows multiple individuals to jointly own and manage property.

• Advantages: optimized management of family real estate assets, facilitates asset transfer.

• Ideal for: family real estate management and asset protection.

 

7. General partnership (SC)

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• Features: All partners are jointly and severally liable for the company’s debts.

• Advantages: administrative simplicity, no minimum capital required.

• Ideal for: small businesses with strong mutual trust between partners.

 

8. Non-profit organization (ASBL)

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• Features: The ASBL is intended for non-profit activities such as cultural, sports, or charitable associations. Profits cannot be distributed but must be reinvested in the social purpose.

• Advantages: tax exemption for non-profit activities, flexibility in managing social or cultural projects.

• Ideal for: non-profit organizations and associative projects.

 

9. Family wealth management company (SPF)

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• Features: Intended for managing private family wealth, the SPF benefits from a favorable tax regime while being prohibited from engaging in commercial activities.

• Advantages: exemption from income tax on certain categories of financial investments; ideal for optimizing family wealth.

• Ideal for: private wealth management and tax optimization.

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Why choose AR SERVICES?

 

At AR SERVICES, we understand that every business is unique. That’s why we offer tailored services to meet the specific needs of your project:

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• Structuring advice: we assist you in selecting the most suitable legal structure for your goals, considering tax, legal, and operational aspects.

• Tax optimization: our tax expertise allows you to take full advantage of the benefits offered by Luxembourg, while ensuring complete compliance with current regulations.

• Administrative and accounting support: we handle all your administrative, accounting, and tax obligations, allowing you to focus on developing your business.

• Business relationship management: with our compliance tools, we ensure rigorous management of your business relationships, adhering to international standards in anti-money laundering and counter-terrorist financing.