A leading financial centre, an ideal cross-border location, political and legal stability: Luxembourg retains strong appeal for entrepreneurs in 2026. The Grand Duchy confirms this momentum with the announcement of a new tax credit aimed at start-ups.
Setting up a company in Luxembourg nonetheless remains a structured process, which involves choosing the right legal form and following a precise administrative path. Here is a clear guide to start under the best conditions.
From the SARL-S to the SA, each form suits a different project. Let's take stock.
The main legal forms
Luxembourg law offers a range of structures suited to every project:
- SARL (private limited company): minimum capital of €12,000, from 1 to 100 partners; this is the most common form;
- SARL-S (simplified): minimum capital of €1, reserved for natural persons, with a capped turnover;
- SA (public limited company): minimum capital of €30,000, heavier governance, suited to fundraising;
- SCS and SCSp (limited partnerships, simple or special): preferred vehicles for investment.
The choice depends on your project, the number of partners, financing needs and the desired liability.
The setup steps
On average, incorporation takes 10 to 15 days and follows this path:
- preliminary study and choice of legal form;
- deed of incorporation before a notary;
- deposit of share capital into a bank account;
- registration with the Trade and Companies Register (RCS);
- publication in the RESA (electronic register of companies and associations);
- affiliation with the Joint Social Security Centre (CCSS);
- VAT registration, if the activity is eligible;
- obtaining the business permit from the Ministry of the Economy.
Average costs
As a guide, the setup budget includes:
- notary fees: from €800 to €1,500;
- RCS registration: around €30;
- business permit: €50;
- trust-company support (recommended): variable depending on the engagement.
New 2026 start-up tax credit
Announced for 2026, a new tax credit aims to support investors and young innovative companies. Subject to strict eligibility criteria, it is part of an effort to strengthen the Luxembourg entrepreneurial ecosystem.
Corporate tax regime
The taxation of Luxembourg companies combines several taxes:
- corporate income tax (IRC): 17% above €200,001, 15% between €175,001 and €200,000, and 14% between €50,001 and €175,000;
- municipal business tax (ICC): variable by municipality (6.75% in Luxembourg City);
- combined overall tax rate: around 24.94% on average;
- net wealth tax (IF): 0.5% for the portion up to €500 million.
Luxembourg offers one of the most stable legal frameworks in Europe for doing business, with a multilingual business environment (French, English, German, Luxembourgish) that facilitates cross-border operations.
Obligations once the company is created
Registration is only a starting point. A Luxembourg company must then comply with a number of recurring obligations:
- keep proper accounts compliant with the standard chart of accounts (PCN);
- file its annual accounts with the RCS within the legal deadlines;
- declare and pay VAT according to the applicable frequency (monthly, quarterly or annual);
- prepare annual tax returns (IRC, ICC, IF);
- manage payroll and social declarations if the company employs staff.
If neglected, these obligations expose the company to surcharges and penalties. This is precisely where a trust-company partner proves its full value.
Domiciliation and substance
Every company must have an effective registered office in Luxembourg. Beyond the address, the authorities pay attention to "substance": genuine presence, locally based decision-making bodies, operating resources. Anticipating these requirements from the outset avoids later difficulties, particularly with banks and the tax administration, and strengthens the credibility of the company with its partners and clients.
Launch your project with CorExperts
From choosing the legal form to administrative formalities, tax optimisation and accounting follow-up, company creation benefits from end-to-end support. Our firm manages the entire process, from idea to registration, and then handles the day-to-day management of your company.
To bring your project to life, discover our company creation service or contact our experts.