Luxembourg’s law for the introduction of a new form of incorporation, namely the simplified private limited company (S.à.r.l.-S), was adopted by the government on 21 January 2015.
Initiated by Félix Braz, the minister of Justice, this law is designed to encourage entrepreneurship by simplifying the process of creating a new company.
The new S.à.r.l.-S pares down the official formalities to the bare minimum in order to enable entrepreneurs to form their company more rapidly, with fewer prerequisites and at a reduced cost.
This new form of incorporation is primarily aimed at natural persons who wish to start a new business and who, on account of the nature of their planned activity, do not necessarily require a large capital to start off with. The companies they form are known as “one one one” companies: they are formed in one day, by one person, for one euro.
Yes, you read it right: the starting share capital required to form such a company is just a single euro. This is one of the key attractions of the S.à.r.l.-S form of incorporation, when compared with the 12,394.68 euros required for the formation of a traditional S.à.r.l. company in Luxembourg. It is expected to boost entrepreneurship, especially among young people and job seekers.
