Luxembourg introduced the Sàrl-S (Société à responsabilité limitée simplifiée) to make incorporation faster and cheaper for small businesses. No notary deed, no minimum capital beyond 1€, and the whole process can run electronically through the House of Entrepreneurship.

But the form has real limits. Here's exactly what it is — and isn't.

What the Sàrl-S is

A Sàrl-S is a private limited liability company governed by the same law as a standard Sàrl (the 1915 Companies Act), but with a simplified incorporation process. You skip the notarial deed, which saves roughly €1,000–1,500 in upfront costs and several weeks of appointment-scheduling.

The key requirements:

  • 1€ minimum capital — though you'll want more to open a bank account and operate practically.
  • Natural persons only — a Sàrl-S cannot be formed by another company; only individuals.
  • One Sàrl-S per person — you can't hold multiple simplified companies simultaneously.
  • You need a business permit — same as any Luxembourg company, issuance by the Ministry of the Economy.

Step-by-step incorporation

  1. Apply for your business permit — submit to the Ministry of the Economy with your qualifications (professional experience, diplomas) and proof of premises (registered address).
  1. Open a bank account — a bank account is practically necessary, but unlike a notarial Sàrl there is no blocked-capital certificate requirement; capital from 1€ is simply confirmed in the filing.
  1. File with the RCS — filing happens electronically with the Luxembourg Business Registers (LBR) portal. The House of Entrepreneurship can assist with preparing the file, but the register is the RCS.
  1. RCS publication — once accepted, your company appears in the Luxembourg Business Register (RCS) and you receive an RCS number.

What the Sàrl-S is NOT

It's not a shortcut around regulatory requirements. You'll still need: - A registered office in Luxembourg - Annual accounts filed within 7 months of year-end - VAT registration if your turnover exceeds thresholds - Free of reserve obligations — each year, 5% of profits must be set aside until capital plus reserve reach €12,000 - A full business permit (not just a declaration)

For most first-time founders, the Sàrl-S is the right starting point — fast, cheap, and fully recognised. If you later raise capital or add corporate shareholders, you'll convert to a standard Sàrl.

Read Luxembourg startup funding in 2026: the complete map for the grants and incentives available once your company is set up.