Company LawLimited Liability Companies

Get to Know Luxembourg Limited Liability Companies

Luxembourg offers two forms of limited liability company, the S.à r.l.-S and the standard S.à r.l. Here is how they compare on capital, ownership, formation and business permits.

S.à r.l.-S

Société à responsabilité limitée simplifiée (simplified private limited liability company)

  • €1 minimum share capital
  • No notary required
  • Owned only by natural persons
  • One S.à r.l.-S per founder at a time
  • Commercial activities only
  • Business permit always required
  • Preferred by entrepreneurs or freelancers for startups
  • Fully remote formation possible

S.à r.l.

Société à responsabilité limitée (standard private limited liability company)

  • €12,000 minimum share capital
  • Formed through a notarial deed
  • No ownership restrictions, corporate shareholders allowed
  • No limit on companies per founder
  • Commercial and holding/patrimonial purposes
  • Business permit required only for commercial activities
  • Suited to larger or multi-founder structures
  • Fully remote formation possible

Which one fits best depends on your business and ownership plans, something we help you work through from our first conversation.

This article is for information purposes only and does not constitute legal or tax advice.

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