Comparing legal forms in Luxembourg
Published on 10 October 2026 · Updated on 10 October 2026
In short
Luxembourg legal forms compared here come as six side-by-side choices, each setting two close options against the same criteria: capital, liability, formalities, formation cost, business permit and standing with banks. Read the one that matches your hesitation, then request a quote for the form you retain.
The comparisons
- SARL-S or SARLCapital of €1 or €12,000, with or without a notary, individuals or companies.
- SARL or SAShares or stock, transferability, governance and capital of €30,000.
- SARL-S or sole traderPersonal assets protected or not, formalities, annual accounts and social status.
- Branch or subsidiaryFor a foreign company: legal personality, parent company liability, permit.
- Domiciliation or officeWhen a domiciliation is enough and when the business permit requires real premises.
- SOPARFI or SPFTwo holding vehicles with very different tax regimes and authorised activities.
A comparison is not advice
Our comparisons describe the legal and administrative rules. The choice also depends on your personal taxation and your project. We do not give tax advice: an independent licensed accountant or a partner lawyer can work out the options with you.
Next step
Still undecided?
Describe your project: we will tell you which form fits and the matching price.
Frequently asked questions
What is the most common company type in Luxembourg?
The SARL and the SARL-S are the forms most used by entrepreneurs and SMEs, because they limit liability to contributions with reasonable formalities. The SA suits projects with several investors or a prospect of selling shares.
Which comparison should you start with?
If you are starting alone, begin with SARL-S or sole trader, then SARL-S or SARL. If you represent a foreign company, read branch or subsidiary, then domiciliation or office. To hold shareholdings, the SOPARFI or SPF comparison is the most useful.
Can you change legal form later?
Yes. A SARL-S can become a SARL, and a SARL an SA, by conversion. These operations have a cost, notably for the notary, and require RCS filings and sometimes an update of the business permit. It is better to choose well from the start.