Choosing the right legal status is an important step in setting up a business. EI (Entreprise Individuelle) and Sarl (Société à responsabilité limitée)/Sarl-s (Société à responsabilité limitée-simplifiée) are the statutes most frequently used by small businesses. To help you make the right choice, we’ve provided a description and a table summarizing the characteristics of these two types of company.
These information are only a general approach before choosing the legal status. Other legal forms exist. Do not hesitate to ask other professionals for advice and visit the website: guichet.lu by clicking here.
|NUMBER OF PARTNERS||1||from 1 to 100||from 1 to 100|
|CAPITAL AMOUNT||no capital required||minimum €12,000||from €1|
|FINANCIAL RESPONSIBILITY||Personal liability towards third parties||Liability limited to the amount of the contribution||Liability limited to the amount of the contribution|
|TAX REGIME||Contractor’s tax return||Subject to corporate income tax||Subject to corporate income tax|
|CONSTITUTIONAL DOCUMENTS||No need to draw up articles of association|
RCS registration if commercial activity
|Notarized articles of association|
|Articles of association (no need to go before a notary)|
|No constitutional documents (statuts) needed, the entrepreneur acts on his own name||The private assets of the entrepreneur are mixed with the assets of the business activity|
|Management of accounting and tax is quite easy||The entrepreneur is responsible for all the debts of the business|
|No minimum capital required||Not possible to have shareholders|
|Personal goods are not impacted by debts or financial difficulties||More formalism to produce accounting documents (balance sheet, profit and loss table,…)|
|Limited responsibility towards the capital brought into the company||Constitutional documents, memorandum of association (statuts) are mandatory. (you can download a model here)|
|Possibility to have one or more partners|
Depending on the progress of your project, we’ll give you advice, put you in touch with one of our volunteers, or refer you to another entrepreneurial support organization.