NEW: Incorporation Of A Company With €1 Equity: S.A.R.L.-S.

New in Luxembourg: Simplified Limited Liability Company or S.A.R.L.-S.

It is now possible to incorporate a company with €1 equity and with reduced costs and fees!

Since 16 January 2017, the Law of 23 July 2016 (reforming of the Law of 10 August 1915) is applicable in Grand Duchy of Luxembourg.

Luxembourg Government decided to implement an alternative structure to the ordinary Limited Liability Company (or S.A.R.L.-S), faster and cheaper in its process of incorporation, in order to promote the entrepreneurship.

The main characteristics of the S.A.R.L.-S. are the following :

The SARL-S pursuing commercial activities falls in the scope of the Law of 02 September 2011 on business permit ; The SARL-S is reserved for commercial activities with low capital needs ; A minimum share capital between1 and11,999 by contribution in cash or in kind ; A sum corresponding to one-twentieth of the annual net profit shall be allocated to a legal reserve ; Incorporation under private deed ; Only natural persons can be shareholders (from 1 to 100 people) and one cannot be associates in several S.A.R.L.-S. (except in the case of transmission of shares upon death) ; Managers must be natural persons too ; No restriction regarding the nationalities and functions of the shareholders and the managers ; Specific indications must appear in the articles of association such as...