Luxembourg (LLC) Limited Liability Company (SARL) Description

A Luxembourg LLC or Limited Liability Company is officially known as a “Société à Responsabilité Limitée” (SARL). It is a cross between a corporation and a partnership. Its members (partners) liability is limited to their contributions to the company. Approximately 66% of all Luxembourg companies are SARL’s making it the most popular type of company in the country.

Benefits of SARL

A Luxembourg Limited Liability Company (SARL) obtains the following benefits:

  • Limited Liability: All of the partners have limited liability beyond their contributions to the company’s capital.
  • One Member: A SARL can have a minimum of one member who has total control.
  • Low Minimum Capital: The minimum authorized capital is 12,500 Euro.
  • Simple Business Structure: Reduced administrative formalities to run the business.
  • Privacy: The only document filed to register a SARL is a Memorandum of Association which does not contain the names of partners (shareholders).

SARL Registration

The following document must be prepared, notarized, and filed with the Trade and Companies Register (registre de commerce et des sociétés – RCS):

Memorandum of Association for a Luxembourg SARL.

The Memorandum can be prepared in English, French, or German. In addition, the document is published in the Official Bulletin (Mémorial C) which is similar to other countries’ Official Gazette.

Registered Agent and Office

Every SARL must have a registered office in Luxembourg. However, a registered agent is not required.

Registration Time

Since only one document is filed to register the SARL, registration can be completed in one day.