The most popular incorporation for foreign investors setting up a presence in Luxembourg is to incorporate a private limited liability company, also known as Société à responsabilité limitée or S.à r.l.
The minimum paid-up capital amount for the incorporation is at least EUR 12,500. The funds must be deposited into a company bank account in the name of the proposed company. The bank will then temporarily block the funds and issue a document called the Block Certificate, which will then need to be addressed to the instructed notary in Luxembourg.
Once the instructed Luxembourg notary has signed off on the necessary paperwork for the share capital, the funds will then be released to the company. Lastly, the incorporation documents, including the articles of incorporation, will need to be filled with the Registrar within 1 month. The details of the Shareholder(s) and Director(s) will be published on the public register, also known as the Luxembourg electronic gazette (Recueil Electronique des Sociétés et Associations).
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