A Private Limited Liability Company (Société à responsabilité limitée – SARL) is one of the most common company types in Luxembourg.

A company, being a distinct legal entity, can gain, own, enjoy and alienate property in its own name. The shareholders aren’t the owners of the SARL’s property. The company itself is the true owner. In the company form of organization, it is possible for a company to make a valid and effective contract with any of its members. It is also possible for a person to be in control of a company and be in its employment. Thus, a person can at the same time be a shareholder, creditor, director and also an employee of the company. An SARL can be formed for any business purpose. However, insurance companies, savings companies and investment companies cannot be formed as Private Limited Liability Company.


Private Limited Liability Company incorporation procedure
Here is Private Limited Liability Company incorporation procedure divided into 3 main stages:

Stage 1: Bank account
The first step to register a SARL in Luxembourg is to open a corporate bank account where the share capital will be deposited.

Stage 2: Company name
The second step is to choose and reserve the company name, followed by preparation of the Articles of Association, which together with the shareholders and directors or managers’ details have to be filed with the RCS. Lawyers in Luxembourg or a public notary must prepare the incorporation documents.

Stage 3: Business license
The last steps of the company registration process comprise applying for the business license with the Ministry of Economy and filing with the tax authorities in Luxembourg.