Which company type should you choose in Luxembourg?
The types of companies in Luxembourg differ by minimum capital, whether a notary is required and the number of shareholders. A company type is the legal framework of a business: SARL-S, SARL, SA, sole trader or branch. Each suits a different project: starting alone, partnering, welcoming investors or setting up a foreign company.
Published on 10 October 2026 · Updated on 10 October 2026
In short
The types of companies in Luxembourg are the SARL-S, the SARL, the SA, the sole proprietorship and the branch. The SARL-S needs €1 of capital and no notary, the SARL €12,000 with a notary, and the SA €30,000 with 25% paid up. The right choice depends on the number of shareholders, the capital and your project.
The company types compared
| Type | Minimum capital | Notary | Shareholders | Best for |
|---|---|---|---|---|
| SARL-S | €1 | No | Individuals | Solo entrepreneur, small capital |
| SARL | €12,000 | Yes | 1 to 100 | Most small and medium businesses |
| SA | €30,000 (25% paid up) | Yes | 1 or more | Investors, frequent share transfers |
| Sole trader | None | No | You alone | Business in your own name |
| Branch | None (capital of the parent company) | Depends on the case | Foreign company | Setting up a group presence |
The company types in one definition
- SARL-S
- simplified private limited company, formed without a notary by individuals, with share capital of €1 to €11,999.
- SARL
- private limited company with 1 to 100 shareholders, minimum share capital of €12,000 fully subscribed and payable in cash within 12 months, formed before a notary.
- SA
- public limited company (société anonyme) with minimum share capital of €30,000 divided into freely transferable shares, a quarter of which is paid up at incorporation.
- Sole proprietorship
- a business run in your own name, with no company, capital or articles, and unlimited liability.
- Branch
- the Luxembourg establishment, without separate legal personality, of a foreign company, registered with the RCS.
- SOPARFI
- financial holding company, an ordinary commercial company that holds and manages shareholdings.
- SPF
- family wealth management company, limited to managing financial assets for private investors.
- SCSp
- special limited partnership, without legal personality, used notably for investment funds.
- SCI
- real estate civil company, which holds and manages property without commercial activity.
Next step
Not decided yet?
Describe your project and we will recommend a company type and quote the formation.
Frequently asked questions
What is the cheapest company type to set up?
Running a business in your own name, then the SARL-S, which does not need a notary. Formation cost is only one criterion, however: liability, taxation and credibility matter more over time.
Can you change company type later?
Yes, by conversion, with an amendment of the articles. A SARL-S can become a SARL, and a SARL can become an SA.