Luxembourg financial district

Luxembourg

An EU financial center specializing in investment funds, holding companies, and private banking, with an attractive tax environment and political stability.

EU Financial CenterInvestment FundsHolding CompaniesPrivate Banking

The Luxembourg Advantage

Luxembourg is a small sovereign state in Western Europe, renowned for its political stability, innovative financial services, and strategic location at the heart of the European Union. As a founding member of the EU, Luxembourg offers businesses direct access to the European single market while providing a favorable tax environment and robust legal framework.

The Grand Duchy has established itself as a leading global center for investment funds, private banking, and holding companies. Luxembourg's sophisticated financial ecosystem, combined with its business-friendly policies, attracts companies seeking efficient corporate structures for European and international operations while maintaining full EU compliance.

Key Benefits

  • EU Membership: Full access to European single market with EU passporting rights
  • Investment Fund Expertise: World's second-largest investment fund center with specialized legal frameworks
  • Holding Company Benefits: Favorable participation exemption regime and extensive tax treaty network
  • Political Stability: Strong government support for business with consistent regulatory policies
  • Multilingual Environment: Business conducted in English, French, and German with multinational workforce

Company Types Available

Société à responsabilité limitée (S.à r.l.)

Limited liability company with minimum capital of €12,000, suitable for most business activities.

Société anonyme (S.A.)

Public limited company with minimum capital of €30,000, ideal for larger operations.

SOPARFI (Société de Participation Financière)

Financial participation company specialized in holding and managing investments.

Société en Commandite par Actions (SCA)

Partnership limited by shares offering flexibility and governance advantages.

Regulatory Framework

Luxembourg maintains a sophisticated regulatory framework that balances business-friendly policies with robust oversight. The Luxembourg financial sector is regulated by the Commission de Surveillance du Secteur Financier (CSSF), which ensures compliance with both national and EU regulations while maintaining the jurisdiction's reputation for excellence and innovation.

Luxembourg is fully compliant with EU directives and international standards on transparency, anti-money laundering, and exchange of information. The jurisdiction has implemented the Common Reporting Standard (CRS) and FATCA, and actively participates in the OECD's Base Erosion and Profit Shifting (BEPS) initiatives. This commitment to international standards reinforces Luxembourg's status as a reputable financial center while preserving its competitive advantages.

Company Formation Requirements

  • Timeframe2-3 weeks
  • Directors RequiredMinimum 1 (no nationality requirement)
  • Shareholders RequiredMinimum 1 (S.à r.l.) or 1 (S.A.)
  • Minimum Capital€12,000 (S.à r.l.) or €30,000 (S.A.)
  • Physical PresenceLocal registered office required
  • Annual RequirementsAnnual accounts, audit (for larger companies), tax returns

Luxembourg Company Fees

  • Incorporation FeeFrom €3,500
  • Annual MaintenanceFrom €5,000
  • Corporate ServicesSee our fee schedule

Ready to Incorporate?

Our team of experts can guide you through the entire process of establishing your Luxembourg company with specialized EU market entry support.

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