Company type, or legal structure, determines the framework under which a business operates – such as a SARL (limited liability company), SA (public limited company), SCS (limited partnership), or SCSp (special limited partnership).
In Luxembourg, each company type carries different implications for liability, taxation, and regulatory requirements. Choosing the right company type is crucial as it influences capital requirements, management structures, and governance standards. Entrepreneurs must carefully assess their business needs and long-term goals when deciding on the company type, ensuring alignment with Luxembourg’s legal system.