Question 1

What is the minimum share capital to set up a SARL in Luxembourg?

Accepted Answer

The minimum share capital for a SARL in Luxembourg is €12,000, which must be fully paid up at incorporation. For a SARL-S (simplified private limited company), the minimum capital is just €1, with the obligation to build a legal reserve of €12,000.

Question 2

How long does it take to incorporate a company in Luxembourg?

Accepted Answer

With Bookkeeper.lu, company formation takes an average of 5 to 10 business days: drafting the articles of association, notarial deed, registration with the Trade and Companies Register (RCS), and obtaining a VAT number. SARL-S companies can be formed in as little as 72 hours.

Question 3

What are the accounting obligations for a Luxembourg company?

Accepted Answer

Every Luxembourg company must maintain accounts compliant with the Standard Chart of Accounts (PCN), file annual accounts with the RCS, submit tax returns (CIT, MBT, net wealth tax), and - where applicable - file quarterly or monthly VAT returns.

Question 4

What is the corporate tax rate in Luxembourg?

Accepted Answer

The overall corporate tax rate for a company based in Luxembourg City is approximately 24.94%, comprising Corporate Income Tax (CIT) at 17%, the employment fund contribution (1.19%), and Municipal Business Tax (MBT) at approximately 6.75%. The rate may vary depending on the municipality of the registered office.

Question 5

Can I set up a company in Luxembourg as a non-resident?

Accepted Answer

Yes, non-residents can absolutely set up a company in Luxembourg. You will need a registered office address in Luxembourg (which we can provide), a Luxembourg bank account, and compliance with KYC/AML requirements. Our multilingual team will guide you through every step.

Question 6

What documents are required to incorporate a company?

Accepted Answer

Required documents include: a valid ID for each founder, proof of address less than 3 months old, a certificate of non-bankruptcy from the country of residence, draft articles of association, and proof of share capital deposit. For corporate founders, an extract from the commercial register is also required.

Question 7

How does VAT work in Luxembourg?

Accepted Answer

Luxembourg applies a standard VAT rate of 17% (the lowest in the EU), an intermediate rate of 14%, a reduced rate of 8%, and a super-reduced rate of 3%. VAT returns are filed monthly, quarterly, or annually depending on turnover. The VAT registration threshold is €35,000 in annual turnover.

Question 8

What languages does your team speak?

Accepted Answer

Our team works in French, English, German, and Portuguese. All documents, reports, and communications can be provided in your preferred language.

Bookkeeping in Luxembourg

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