Luxembourg, with its strong financial reputation and welcoming business environment, is an appealing destination for entrepreneurs worldwide. If you’re a non-resident looking to create a business in Luxembourg, understanding the various legal forms and the process for opening a business bank account is crucial. Damalion introduces you to the popular legal structures and explain how you can easily open a bank account online with the help of Damalion.
Popular Legal forms for non-resident entrepreneurs
- Société à Responsabilité Limitée (SARL)
- Overview: The SARL, or Private Limited Liability Company, is a favorite among small and medium-sized enterprises. It’s ideal for entrepreneurs who want a straightforward setup with limited personal liability.
- Capital Requirements: To start a SARL, you’ll need a minimum share capital of €12,000, which must be fully paid up at registration.
- Liability: This structure protects your personal assets since shareholders are only liable for the company’s debts up to the amount of their share capital.
- Management: You can manage the SARL with one or more appointed managers, making it flexible and efficient.
- Société Anonyme (SA)
- Overview: The SA, or Public Limited Company, is designed for larger businesses and those considering public investment. It’s a great choice if you’re planning for significant expansion or public listing.
- Capital Requirements: An SA requires a minimum share capital of €30,000, with at least 25% of this amount paid up before the company is registered.
- Liability: Like the SARL, shareholders’ personal assets are protected as they are only liable up to their investment in the company.
- Management: This structure offers flexibility with management options, including a Board of Directors or a Management Board.
- Société à Responsabilité Limitée Simplifiée (SARL-S)
- Overview: The SARL-S, or Simplified Private Limited Liability Company, is tailored for startups and small businesses, making it a cost-effective and simplified option.
- Capital Requirements: You can start a SARL-S in Luxembourg with a minimal capital of just €1, which makes it very accessible for entrepreneurs with limited initial funds.
- Liability: The SARL-S provides the same limited liability protection as the SARL, keeping your personal assets secure.
- Management: Its management structure is straightforward, similar to the SARL, allowing for ease of operation.
Requirements for opening a business bank account
Opening a business bank account in Luxembourg is a straightforward process, especially with the convenience of online services provided by platforms like Damalion. Here’s what you typically need:
- Company Documentation: You’ll need to provide key documents such as the Articles of Association, proof of company registration, and information about your business structure.
- Identification: Non-residents must submit valid identification, such as a passport, along with proof of address. This helps verify your identity and comply with regulatory requirements.
- Proof of Address: Both your company’s and your personal proof of address documents are needed to ensure compliance with anti-money laundering laws.
With the support of platforms like Damalion, non-residents can navigate these requirements smoothly and set up their business accounts online. This makes Luxembourg an accessible and attractive option for entrepreneurs looking to expand their business horizons.
Luxembourg’s welcoming business climate and efficient banking services make it a great choice for international entrepreneurs. Whether you choose a SARL, SA, or SARL-S, setting up your business and opening a bank account here can be a seamless and rewarding experience with the right support.
Damalion has been supporting various companies to register their businesses and corporations in Luxembourg with business bank accounts. Please contact your Damalion expert now.
