Explanation of Legal Forms
Understanding Legal Forms in Luxembourg
What are Legal Forms?
Choosing the legal form is one of the most important steps in creating a business. It defines the liability structure, management and taxation of your business. Company Creation offers specialized expertise to help you make the best decision.
Legal Forms Options
SARL
Ideal for small and medium-sized businesses, with liability limited to the capital invested.
SA
Recommended for larger companies, with higher minimum capital.
SC
Used by cooperatives and non-profit organizations.
Sole Proprietorship
Sole proprietorship with full responsibility for the activity.
Understand How
How to Choose the Right Legal Form?
Choosing the legal form goes far beyond a mere formality. It directly influences the daily operations, legal responsibilities and even the economic viability of your business. The main factors to consider are:
Number of partners
Whether the company will have partners or will be individual. The SARL is ideal for up to 100 partners, while the SA is recommended for large companies with several shareholders.
Financial capacity
The SA requires a minimum capital of 30,000 euros, while the SARL requires only 12,000 euros, which makes it more accessible to small and medium-sized businesses.
Legal responsibilities
The Sole Proprietorship offers full control, but with full liability for debts. The SARL and the SA limit liability to the invested capital, which is advantageous for higher risk sectors.
Advantages of Each Structure
Maximizing Opportunities and Reducing Risks
SARL
(Limited Liability Company)
Flexibility in management and liability limited to the invested capital. Ideal for small and medium-sized businesses with up to 100 partners.
SA
(Public Limited Company)
Allows the issuance of shares and facilitates the raising of capital from investors. Ideal for large companies looking to expand.
SC
(Cooperative Society)
Collaboration between members around a common goal. Ideal for cooperatives and groups with a social or community vocation.
Business
Individual
Offers full control to the owner, but also full liability for debts. Ideal for micro-entrepreneurs and freelancers.
Find the Ideal Legal Structure
Choose the Business Form that Best Suits Your Needs
- SARL: Ideal for small and medium-sized businesses with limited liability and flexible management.
- SA: Recommended for large companies looking to attract investors.
- SC: Perfect for cooperatives and non-profit organizations.
- Sole Proprietorship: Full control, but with full liability for debts.
