Costs of setting up a company in Luxembourg in 2025

Luxembourg as a business hub

Before fully calculating the cost of setting up a company in Luxembourg, it is important to bear in mind that the mere fact of seeking to establish a company in Luxembourg influences the costs of setting it up. Creating a company does not have the same cost depending on where it is created. Some countries may be cheaper than others in this aspect; however, not all of them offer the same advantages.

It is then important to briefly recall some of the main advantages of the Grand Duchy to the companies that inhabit it. This country is one of the richest countries in Europe and presents an ideal environment for entrepreneurs, it has a strong and stable economy, a strategic location in the heart of Europe, and a regulatory framework favorable to business activity. A company in the Grand Duchy can benefit from the following aspects, among many others:

Strategic geographical position

Luxembourg is located in a strategic geographical position in the heart of Europe and has an excellent transport infrastructure.

Political and economic stability

Luxembourg's political stability and diversified economy offer a secure and reliable environment for business.

Favorable tax environment

Luxembourg's tax framework is extremely attractive, as evidenced by the high quality of offshore companies or holding companies, although the tax advantages are not limited to this type of company.

Support for entrepreneurship and innovation

Luxembourg has a large number of programs and resources to support innovation and entrepreneurship which makes starting a project from scratch much easier.

How to choose the right business structure in Luxembourg

One of the most important factors influencing the cost of setting up a company in Luxembourg is the minimum initial share capital required. It is therefore essential to carefully choose the type of company that best suits the business model you have in mind and to keep in mind the costs involved in this legal structure. Let us then briefly review some of the main legal forms attaching next to their name the minimum share capital required for their incorporation.

What are the costs of opening a business in Luxembourg

When setting up a company in Luxembourg it is important to consider five main cost categories: the minimum share capital required, the administrative costs of establishment, the cost of the company premises, the costs of installation and inventory, and other operating expenses. Let's go through them one by one.

Minimum share capital requirement

One of the most important expenses is the one we mentioned in the previous section, the minimum required share capital. This is composed of the contributions in cash or kind made by the partners to the company and must be paid into a bank account opened in the name of the company. It will be immobilized until the incorporation of the company. However, it must be taken into account that not always the whole minimum capital must be paid in from the beginning. For example, in some structures such as the SA or the SAS, only a fraction of this capital must be contributed at the beginning. The minimum amount for the most common structures in Luxembourg is:

• No minimum requirements: SCS, SCSp and SCOP.
• 1 euro: SARL-S (fully subscribed and paid-up capital).
• 12,000 euros: SARL (fully subscribed and paid-up capital).
• 30,000 euros: SA, SAS and SCA (fully subscribed and paid-up capital up to at least one-quarter of the total).

Administrative expenses

This category includes multiple expenses with the most important and representative one being the notary fees, let's see them in detail:

1. Notary expenses 

   Some legal structures require a notary for their incorporation such as SARLs, SA or SAS. Their main role is to authenticate the deed of incorporation of the company, verify that the founders comply with the legal requirements such as the minimum share capital and verify that the articles of association are in order. Notary fees vary depending on the complexity of the process and the value of the share capital, but are usually in the range of 1,000 to 3,000 euros. This figure may be higher if the company has a complex structure or a high share capital.

2. Publication costs in the Commercial Registry (RCS) 

   In order for the company to be legally incorporated it is necessary to register it in the Registre de Commerce et des Sociétés, (RCS). If the company is incorporated before a notary, the notary will take care of the procedure and its cost, otherwise the entrepreneur must do it. The registration costs range from 10 to 106 euros depending on the legal form of the company and can be consulted on the RCS website.

3. Registration fees

   At the time of incorporation of a civil or commercial company, a fixed registration fee of 75 euros must be paid to the Administration of Registration, Domains and TVA (AED).At the time of incorporation of a civil or commercial company, a fixed registration fee of 75 euros must be paid to the Administration of Registration, Domains and TVA (AED).

4. Certificate of name availability

   It is advisable to check the availability of the trade name before the company's incorporation by applying to the Luxembourg Trade Register (LBR) for a “Certificate of availability of the trade name.” This procedure is subject to an administrative fee of between 4.75 and 10 euros.

5. Business permit

   In Luxembourg, authorization is required to create a company for the purpose of exercising a commercial or artisanal activity or in certain liberal professions. To obtain this authorization, one must meet certain criteria of honorability and qualification and pay a fee of 50 euros.

Cost of company premises

Every company must operate from somewhere, therefore when creating a company it is necessary to procure such a space. At this point there are several alternatives with different associated costs:

1. Purchase of real estate

   Buying real estate in Luxembourg to operate a business can provide long-term stability, as the property appreciates over time and there is no risk of rent increases. It also provides independence from third parties. However, it requires a considerable initial investment.

2. Renting premises

   Renting premises offers great flexibility as it does not require a large initial investment and also makes changing premises much easier. However, rents can be high, especially in centrally located commercial areas. Prices range from around 300 euros per month for a shared office on the outskirts of Luxembourg to several thousand euros for a store or premises in the city center.

3. Operating from home

   This is an economical and flexible option, ideal for entrepreneurs who are just starting or who have businesses with low space requirements. However, this option can generate difficulties if the business grows and you must separate your personal and professional life. In addition, the process is highly regulated, the property must be located in Luxembourg, and the exercise of professional activity must be authorized by the municipal ordinances. The co-ownership and/or the owner, and the property must include an office or workshop appropriate to the profession.

Other expenses must also be taken into account: in the case of choosing a rental a rental guarantee which can be up to 3 months' rent plus agency fees and expenses and whatever the case (rental or purchase) charges (water, electricity, heating, Internet and telephone subscriptions), etc. must also be taken into account.

Set-up and inventory costs

For a company to start operating, it needs to be legally incorporated and have a place to operate from, as well as the necessary equipment and tools. These can represent only some computer equipment, a smartphone and some professional software, although the costs can be much higher if it is necessary to set up a store or equip a workshop.

In addition, if the business model involves the sale of physical products, it may be necessary to create an initial stock, which may also involve buying raw materials and incurring transportation and storage costs.

Accounting services in Luxembourg

Finally, we will present some accounting companies that can be of great help in estimating the costs of setting up a company in Luxembourg, in finding ways to reduce them. And also in framing the whole cost structure within the business plan.

Digits Solutions

This company is both a firm of accountants and a continuing professional training (CVT) organization established in the Grand Duchy of Luxembourg. Its accounting services are aimed at all types of companies from startups to holding companies and include a wide range of services including consolidation of financial statements, CBCR reporting and BCL reporting. Additionally Digits Solutions provides business management training, digital tools and advice on e-signatures, audit assistance and iXBRL reporting.

Good location

Offers professional training

Wide range of services

Human-sized company

EasyBiz

EasyBiz is a Luxembourg startup that offers company incorporation and professional accounting services for companies of all sizes. This company was founded by Daniil Kirikov, a serial investor with 12 years of experience in innovative products and is headed by Aurore Calvi as CEO, a tax expert, accountant and financial advisor who has 25 years of experience in fiduciary services.

EasyBiz offers accounting services that combine fiduciary expertise with a digital platform to simplify accounting management. It handles all tax obligations and timely tax filings, while providing access to expert accountants via live chat with quick responses. In addition, it offers real-time interactive reports to provide clarity on the cash flow and financial status of the company.

The company's platform includes intuitive tools for managing invoices and documents, automatically linking bank transactions and contacts. EasyBiz also ensures tax compliance with reminders and assistance in filing tax and VAT returns. In addition, EasyBiz has a strong focus on security and ensures RGPD compliant storage of all documents.

Wide range of services

Incorporation services

Experienced team

Startup

LPL Expert Comptable au Luxembourg

LPL is a firm of chartered accountants with a team of 7 people led by Ludovic Lo Presti, founder of the company and OEC-certified expert-accountant. LPL specializes in fiduciary activities, including auditing, bookkeeping, accounting, tax advice, administrative services, company formation and domiciliation. LPL offers a wide range of services including full accounting, tax and legal advice, payroll management, assistance in setting up companies and registered offices as well as preparation and filing of tax and VAT returns, tailored to the specific needs of each client.

Additional services outside accounting

Wide range of services

Experienced team

Human-sized company

RSM Luxembourg

RSM is a global network of independent firms offering accounting, audit, tax and consulting services and is the sixth largest worldwide in its sector. In Luxembourg, RSM is comprised of five legal entities that provide a wide range of services tailored to the needs of companies of all types, from large international corporations to local businesses and independent individuals. They have a team of about 120 employees which makes of RSM in Luxembourg a solid mid-sized organization.

Additional services outside accounting

Wide range of services

International company

Global reach with local focus

Devaux et Associés

Devaux & Associés is a Luxembourg-based firm of chartered accountants offering comprehensive accounting and tax services. They provide detailed reports on a monthly or quarterly basis and assist in the analysis of these reports through performance indicators, offering customized solutions for long-term planning. The firm also helps in administration and payroll management, offers domiciliation services and handles the incorporation and management of various corporate structures. They stand out for their personalized approach and their ability to adapt to the specific needs of each client.

Additional services outside accounting

Wide range of services

Personalized approach

Presence and experience in Belgium

Throughout this guide we have taken a look at the main costs to be taken into account when setting up a company in Luxembourg, however, moving from theory to practice is much more complicated. It is therefore essential to carry out this process carefully, placing it within the framework of a strong business plan and requesting the help of specialized advisors when necessary.