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Question 1 of 5 Purpose

What is the primary purpose of your new business or activity?

Luxembourg companies require specific structures depending on whether they operate commercially, hold capital assets, or support non-profit causes.

Commercial operations Operating an active retail, freelance, trade, or service-based business.
Investment or asset holding Holding investments, real estate, patent royalties, or acting as an asset holding firm.
Non-profit organisation Fostering cultural, social, charitable, or community-based goals without sharing profit margins.

Will your investors remain passive?

Passive investors are not involved in day-to-day management or strategic operational decisions.

Yes, investors remain passive Ideal for investment structures or manager-led partnership configurations.
No, they will take an active role All equity holders are involved in core executive decisions.

How many owners will the business have?

Your structure differs if you operate as a sole freelancer or have multiple co-founding partners.

Only myself (One owner) Suitable for individual freelancers, consultants, or single-founder startups.
Two or more owners For co-founding partners, multiple team shareholders, or corporate alliances.

Do you want your personal assets to be protected?

Limited liability separates your business debts from your personal home, bank savings, and property.

Yes, protect my personal assets (Limited liability) Your personal liability is capped at your direct capital contributions.
No, I am comfortable with unlimited liability No corporate shield. Your personal assets are exposed to business debts.

Will every owner actively run the business and accept unlimited personal liability?

This helps distinguish between a partnership where every owner has unlimited liability and one where some investors remain passive.

Yes, every owner will be active and accept unlimited liability All partners will be personally responsible for the partnership's debts.
No, some investors will remain passive and want limited liability At least one active partner will accept unlimited liability, while passive investors will have limited liability.
We actually want to protect everyone's personal assets Choose this to opt for a limited-liability company instead.

How much capital are you able or willing to contribute at launch?

Luxembourg private limited companies (SARL) require a minimum capital deposit of €12,000, while public structures (SA) require €30,000.

€30,000 or more You are able to deposit the minimum capital required for a public limited company (SA).
Between €12,000 and €29,999 You can meet the standard private limited company (SARL) capital requirement.
Less than €12,000 Ideal if you prefer starting with low launch capital (minimum is €1 under simplified rules).

Are all owners individual people?

An SARL-S cannot have another company or corporate entity as a shareholder.

Yes, all owners are individual people No corporate entities or holding companies hold shares.
No, at least one owner is a company At least one partner is a registered business, holding firm, or LLC.
I'm not sure Unsure of the legal classification of your shareholders.

Is any owner already a shareholder in another SARL-S?

Under Luxembourg law, a natural person can only hold shares in one SARL-S at any given time.

No None of the co-founders hold shares in any other active simplified SARL-S.
Yes At least one founder already owns shares in an active simplified SARL-S.
I'm not sure Unsure of other simplified corporate holdings among your co-founders.

What type of outside investment do you expect?

Structuring requirements vary depending on whether you rely on a closed circle, venture capital, or public exchanges.

No outside investors planned The business will remain privately held by founders or active managers.
A small number of private investors Relying on a few angel investors, family, or closed partners.
Many investors or regularly changing shareholders Ideal for fast-growth startups raising multiple institutional funding rounds.
A possible public offering or stock-exchange listing Required if you intend to list shares on a public trade exchange.
I'm not sure Unsure of future expansion capital structures.

Will the company have a small, closed group of shareholders?

Private companies (SARL) restrict free share transfers to outsiders, protecting the company from unapproved shareholders.

Yes, small restricted circle (family, friends, founders) Requires majority approval of existing shareholders to transfer shares.
No, larger investor base or corporate entities Shares can be transferred more freely to attract outside venture capital.

Will there be an active general partner responsible for managing the structure?

Active partners run daily operations and accept unlimited personal liability for partnership actions.

Yes, managing active partner At least one partner accepts unlimited liability and manages the trust.
No active general partner No managing partner wants unlimited personal liability exposure.

Should passive investors have liability limited to their investment?

Limited liability ensures passive stakeholders do not risk their personal assets beyond capital commitments.

Yes, limit passive liability Protect passive investor personal assets from investment debts.
No All partners remain comfortable with joint unlimited personal liability.

Is the structure mainly holding the founders' own assets?

Private assets and family estates are managed differently than collective investment funds raising outside money.

Holding founders' private assets Managing personal savings, family trust capital, or proprietary patents.
Taking money from outside investors Raising third-party capital or pooling collective investments.

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Disclaimer: This legal form selector provides an automatic assessment for informational and planning purposes only. Choosing a company configuration features far-reaching fiscal, administrative, and personal asset liabilities. For definitive structuring rules, operational requirements, and corporate entity registration procedures, please check the authoritative guides on Guichet.lu or consult a Finbros advisor.