Legal forms & share capital
The three company forms most founders choose between, and the capital each one requires. The Sàrl-S is the entry form: it trades a €1 minimum capital for an activity restriction and a reserve obligation.
Last verified July 2026
Official sources only, linked per figure
Minimum share capital
Sàrl — minimum capital
€12,000
guichet.public.lu - SARL page (minimum share capital; already published on /company-formation) · verified July 2026
Sàrl-S — minimum capital
€1
guichet.public.lu - Sàrl-S page · verified July 2026
Sàrl-S — maximum capital
above this, the company must convert to a standard Sàrl
€12,000
guichet.public.lu - Sàrl-S page · verified July 2026
SA — minimum capital
€30,000
guichet.public.lu - société anonyme (SA), minimum capital · verified 23 July 2026
SA — paid-up requirement
capital fully subscribed and at least one quarter paid up at incorporation
guichet.public.lu - société anonyme (SA) · verified 23 July 2026
Sàrl-S specifics
Annual reserve obligation
% of yearly net profits set aside until capital + reserve reach €12,000
5%
guichet.public.lu - Sàrl-S page · verified July 2026
Who can use the Sàrl-S
craftsmen, traders, manufacturers and certain liberal professions, activities covered by a business permit
compliance doc §1 / guichet.public.lu - Sàrl-S page · verified July 2026
How founders usually decide
The Sàrl is the default operating company: fixed capital of €12,000 and no activity restriction. The Sàrl-S exists to remove the capital barrier for natural-person founders whose activity needs a business permit; it cannot be held by a company. The SA is chosen where shares must circulate — outside investors, share classes, or a future transfer.
A Sàrl-S is not a permanent home. Once capital plus the legal reserve reach €12,000, conversion into a standard Sàrl is the designed exit.
Common questions
What is the minimum capital for a company in Luxembourg?
A simplified limited liability company (Sàrl-S) can be created with share capital from €1. A standard Sàrl requires €12,000, and a public limited company (SA) requires €30,000 with at least one quarter paid up.
Can a Sàrl-S have more than €12,000 in capital?
No. €12,000 is the legal ceiling for a Sàrl-S; reaching it triggers conversion into a standard Sàrl.
Related in the database
Reference material from official Luxembourg sources, linked per figure. This is document automation support, not legal or tax advice; confirm figures against the linked source for your specific case.