Types of companies in Luxembourg

Luxembourg enjoys economic prosperity, representing a fertile territory for investments. It is known as an excellent banking center and its jurisdiction is also popular for establishing holding and investment companies. Foreign entrepreneurs find a secure and favorable environment for setting up a company. There are various business entities they can form, choosing from the following:

Registration of Joint Stock Company in Luxemburg (Luxembourg Societe Anonyme - SA)
A joint stock company in Luxemburg is formed by at least two members who can be residents or non-residents, individuals or legal entities. This company type is regulated by the Commercial Companies Law 1915 and is designated for business at a large scale. The partners of a joint stock company must provide a minimum capital of EUR 31,000 which is divided into freely transferable shares. The shareholders' liability is limited to the amount of their subscribed contribution to the company's capital.

Registration of Limited Liability Company in Luxemburg (Luxembourg Societee a Responsabilite Limitee - SARL)
The limited liability company is also formed under the Commercial Companies Law and is the most common form chosen by entrepreneurs. The maximum number of shareholders cannot exceed 40. The shareholders must provide a minimum capital of EUR 12,400 divided into participation certificates which cannot be transferred freely. The partners of a limited liability company are liable for the company's debts and obligations only to the extent of their own contribution.

Registration of General Partnership in Luxemburg
A general partnership in Luxemburg is formed by at least two members. It is known either as Societe Civile, for professional partnerships, either as Societe en Nom Collectif, chosen for smaller entities, like family business. All the partners are general and have the right to manage the company, obtaining profit and sustaining losses equally. They have full liability to the company's debts and obligations,

Registration of Limited Partnership
A limited partnership in Luxembourg is established by two partners who establish a partnership agreement. This kind of partnership has at least one general partner who is fully liable to the company's debts and may interfere in the management of the partnership, and at least one limited partner who is liable only to the extent of his or her contribution to the company's assets.

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