Entity comparison
Understand the differences, advantages and similarities of the most common entity forms in Luxembourg.
Know your options
You are looking for a legitimate business structure for your activities, but which one? Do you need a Sarl? Or perhaps a Sarl-S could be sufficient? Or maybe you could do with a personal VAT number and then upgrade? In this page we are presenting the characteristics of the main options for you to understand the best way for your company to come to existence.
Personal VAT number
SARL-S
SARL
Personal VAT number
You want to start a fresh business and you are not looking for the most optimized tax structure, nor for the maximum operational credibility, nor you are worried about the limited liability protection granted by structured companies; you may then think about registering for business permit and for your own personal VAT number in Luxembourg as a natural person. This will already allow you to issue invoices, deal with business partners, and benefit from VAT-specific accounting.
SARL-S
You want to start a business and you are looking for a somehow-optimized tax structure and for the limited liability protection granted by structured companies, but at the same time you want to try saving some money throughout the incorporation process; you may then think about incorporating a Sarl-S (i.e. a simplified limited liability company) in Luxembourg. This process will allow you to incorporate without needing for a notary to notarize your articles of association. Your partners will likely see you as a “baby company”, and investors may not see you as fully credible, but that’s only true if you are planning to raise funds or to sign very large contracts.
SARL
You want to start a business and you want an optimized tax structure and the limited liability protection granted by structured companies. You also care of being regarded as a credible company by institutions, large partners, and investors; you may then think about incorporating a Sarl (i.e. a limited liability company) in Luxembourg. This process will give you the most comprehensive company structure and the greatest flexibility associated to it. Where you go from there will only depend upon you.
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