You dream of starting your business with minimal startup capital, while enjoying a modern and flexible legal framework?
The SARL‑S (Société à Responsabilité Limitée Simplifiée) in Luxembourg may be your ideal solution!
Discover in this article the strengths and weaknesses of the SARL‑S and how to benefit from the services of Financial Services may make your entrepreneurial project a success.
The SARL‑S is a simplified form of the classic SARL, developed expressly to make it easier to set up a business in Luxembourg. With a minimum capital that can be defined from 1 euro (up to 11,999 euros), this form offers an inexpensive entry into the business world, and in particular to individual entrepreneurs and small businesses.
1. Low Starting Capital: One of the strong points of the SARL‑S is the possibility of launching with very small capital. This characteristic gives project leaders the possibility of launching their company without putting in place large initial capital.
2. Simplified Formalities: The formation of an SARL‑S requires fewer administrative formalities than an ordinary SARL. The incorporation can be done privately, which reduces the cost and increases the speed of the registration process.
3. Limited Liability: Just as with all SARLs, the partners of an SARL-S are only responsible to the extent of their contribution. This legal coverage limits personal financial risks and gives confidence to potential investors.
4. Management Flexibility SARL-S offers organizational flexibility and availability which are appropriate for small structures.
The operating modes can be adjusted according to the specific needs of the company, with great freedom of governance being offered.
1. Limitation of Social Capital:
That the capital is capped at 11,999 euros may be a constraint for businesses that are looking to mobilize lots of money or raise big investors. The cap may also act as a constraint on the credibility of the company towards the financial partners.
2. Accounting and Administrative Accounts:
Although the creation is facilitated, a SARL-S is still subjected to rigorous accounting and administration duties (book-keeping duty, annual accounts filing, etc.). Entrepreneurs need to ensure they possess the means or the support necessary in order to respect these duties.
3. Distribution of Dividends:
Assuming the capital is not exceeding 12,000 euros, the distribution of dividends is restricted. Such a restriction could be an hindrance to the company rewarding its partners, particularly during the period of expansion.
Expertise and Personalized Advice
Financial Services offers you access to a team of expert business set-up advisors in Luxembourg. They are there with you throughout the process, from defining the legal form to registering your business to improving your tax structure.
Time saving and low risk
By calling on Financial Services, you have the advantage of being accompanied to the extent of your needs by streamlining the legal and administrative procedures. Their expertise saves you the costs of mistakes and speeds up the creation phase, leaving you with your free time to focus on developing your activity.
Post-Creation Support Help
It does not stop at the establishment of your SARL-S.
Financial Services also offers additional services such as accounting, tax advisory and compliance support. This long-term monitoring ensures that your business is managed with a strong robustness and helps you prepare for regulatory changes.
Trust partner
By choosing Financial Services, you are choosing a proven partner in Luxembourg's startup development community. Their extensive knowledge of the local market and regulatory requirements gives you a secure platform upon which to set up and grow your business venture in tranquility.
The SARL-S offers an exceptional opportunity to entrepreneurs who want to enter Luxembourg with a minimum investment and a flexible legal organization. Although there are certain limitations to this structure, such as share capital and dividend distribution, its many advantages – low start-up costs, minimal formalities, and limited liability – make it a very attractive opportunity.
Let us manage for you this administrative complexity hinder your dream!
With Financial Services, you have the benefit of an experienced and personalized guidance, so your company is not only established on the best terms, but also in a position to thrive on the Luxembourg market. Start now and turn your dream into a reality.
Contact Financial Services to discuss your project and receive a personalized quote.
Your entrepreneurial success starts here!