Luxembourg SARL (Private Limited Company) Setup
Establish a corporate vehicle in Europe's premier financial center. Leverage Luxembourg's prestigious SARL structure, holding company (Soparfi) benefits, and institutional wealth protections.
The Luxembourg SARL
The SARL (Société à Responsabilité Limitée) is the most common corporate form in Luxembourg, representing over 70% of registered companies. It is highly valued for asset management, private equity investments, intellectual property holdings, and multinational subsidiary coordination.
Luxembourg requires a minimum share capital of €12,000, which must be fully paid up at incorporation. The setup is formalized by a notary deed and entered into the Trade and Companies Register (RCS).
Soparfi & Holding Schemes
Luxembourg limited companies often operate as a **Soparfi (Société de participations financières)**, a fully taxable holding company that qualifies for the participation exemption. Dividends, capital gains, and liquidation proceeds from qualifying participations are 100% exempt from corporate tax.
For individuals, Luxembourg also offers the **SPF (Société de gestion de patrimoine familial)** status, a dedicated family wealth management entity exempt from corporate tax, municipal business tax, and net wealth tax, subject only to a 0.25% subscription tax.
Luxembourg Corporate Taxation
Taxable Luxembourg companies are subject to corporate income taxes:
- Corporate Income Tax (CIT): 17% on taxable income exceeding €200,000.
- Municipal Business Tax: 6.75% in Luxembourg City.
- Employment Fund Surcharge: 7% calculated on the CIT rate.
- Combined CIT rate: ~24.94% (for Luxembourg City).