To create a company in Luxembourg attracts many French and Belgian freelancers, self-employed professionals, and entrepreneurs. The country offers a stable environment, a strategic location, and attractive taxation for certain activities. However, many people believe that to create a company in Luxembourg requires a large budget, while the reality is quite different.
Today, several solutions make it possible to create a company in Luxembourg without renting an expensive office or signing a long-term commercial lease. Coworking spaces in particular are completely changing access to entrepreneurship.
Here are the essential steps to create a company in Luxembourg while keeping costs under control.
Why create a company in Luxembourg?
Luxembourg attracts entrepreneurs for several practical reasons.
The country offers a stable economic environment. Administrative procedures are relatively fast. In addition, Luxembourg’s geographical location facilitates cross-border business with Belgium, France, and Germany.
Luxembourg also enjoys an excellent reputation for international activities, service companies, and commercial businesses.
For many cross-border entrepreneurs, to create a company in Luxembourg also makes it possible to clearly separate professional activity from private life. At Colors, many entrepreneurs have made this choice. Discover what a typical day looks like with us.
Which legal structure should you choose to reduce costs?
The choice of legal structure directly impacts the startup budget.
The Sàrl-S: the most accessible solution
Since the law of July 23, 2016, Luxembourg has allowed the creation of a simplified limited liability company called a Sàrl-S.
This structure makes it possible to create a company in Luxembourg with share capital ranging from €1 to €12,000.
The Sàrl-S is perfectly suited for:
- self-employed professionals
- freelancers
- small service businesses
- first-time entrepreneurs
Liability remains limited to the contributions made to the company.
This solution significantly reduces the cost to create a company in Luxembourg and is highly popular among our clients.
The traditional Sàrl
The traditional Sàrl remains widely used in Luxembourg.
It requires a minimum share capital of €12,000. A notary becomes mandatory.
This structure often provides greater credibility with banks and business partners.
The main costs to create a company in Luxembourg
To create a company in Luxembourg involves several fixed expenses.
Administrative costs
You should plan for:
- registration with the Luxembourg Trade and Companies Register (RCS)
- the business permit application
- possible publication fees
- administrative fees
The registered office
This is often the largest expense.
A traditional office in Luxembourg can quickly cost several hundred or even several thousand euros per month.
Many startups therefore choose a more flexible solution:
- coworking in business centers
- shared offices
- small private offices
This approach allows companies to keep a professional business address without bearing the burden of a long-term commercial lease. In addition, scaling according to future needs remains possible.
Why does coworking significantly reduce costs?
Coworking is becoming an increasingly popular solution for entrepreneurs who want to create a company in Luxembourg.
Today’s entrepreneurs are looking for greater flexibility and fewer fixed expenses.
A coworking space often includes:
- internet
- furniture
- cleaning services
- kitchen access
- meeting rooms
- energy costs
The monthly cost remains much lower than a traditional office.
This solution is ideal for entrepreneurs who want to work in a professional environment without committing to major daily expenses.
Can you create a company in Luxembourg without renting a large office?
Many activities do not require a traditional office.
Consultants, developers, graphic designers, digital agencies, and administrative service providers often work from a shared office or coworking desk.
This approach allows entrepreneurs to invest more in business development rather than real estate.
However, if your activity is sensitive, such as the legal profession, a dedicated private office is necessary.
Administrative procedures to create a company in Luxembourg
Define the business activity
The first step is to clearly define the business activity.
Certain professions require diplomas or specific authorizations.
Apply for a business permit
This permit is mandatory for many commercial, craft, and service activities.
The application must be submitted to the Ministry of the Economy.
Register the company
The company must be registered with the Luxembourg Trade and Companies Register.
Open a professional bank account
Banks generally request:
- the articles of association
- the business permit
- identification of shareholders
- the registered office address
Declare the registered office
The professional address officially becomes the company’s registered office.
This is where a coworking solution or a competitively priced private office becomes particularly attractive for reducing costs.
How much does it really cost to create a company in Luxembourg?
The budget varies depending on the chosen structure.
For a small business using coworking, startup costs remain reasonable.
The main expenses generally include:
- administrative procedures
- office type selection
- possible furniture purchases
- insurance
- banking fees
Real estate expenses often represent the largest savings when entrepreneurs avoid a traditional office.
Entrepreneurs should not hesitate to choose coworking. These spaces have become extremely popular in Luxembourg in recent years. They offer modern infrastructure at a lower cost.
Why do French and Belgian entrepreneurs choose Luxembourg?
Luxembourg attracts many cross-border entrepreneurs.
The country offers:
- immediate proximity to France and Belgium
- an international environment
- an excellent professional image
- modern infrastructure
- strong economic stability
For many small businesses, Luxembourg also makes it possible to obtain a serious professional address without excessive real estate costs.
FAQ – Create a company in Luxembourg with a small budget
Can you create a company in Luxembourg with less than €1,000?
Yes. The Sàrl-S allows entrepreneurs to start with very little capital. In fact, it is possible to create a company in Luxembourg with an initial capital of only €1.
The costs mainly depend on administrative fees and the chosen registered office.
Is a registered office address enough to create a company?
Yes, provided that the domiciliation provider has the required legal authorization in Luxembourg and that your business activity is compatible with it.
For information purposes, Colors is not a domiciliation agent and therefore does not provide domiciliation services.
Can a coworking space be used as a registered office?
Yes, provided that the business center offers dedicated coworking desks. In other words, fixed desks clearly displaying the name of your company or activity and that remain assigned to you permanently.
This is the case at Colors with our dedicated coworking offices starting at €199 per month.
Is it absolutely necessary to rent a private office?
No. Many entrepreneurs use shared spaces or coworking solutions to reduce costs.
Is the Sàrl-S suitable for all activities?
No. Certain regulated professions require specific legal structures or particular conditions.
The House of Entrepreneurship can guide you toward the best solution according to your needs thanks to their expertise.
How much does an office cost in Luxembourg?
Prices vary greatly depending on location and included services. Coworking spaces often remain the most cost-effective solution.
