Foreign investors can choose between the types of structures provided for in the Luxembourg Commercial Code when deciding to open a company in the Grand Duchy. Apart from the limited liability company, enterprisers may also choose to open a partnership. There also several types of partnerships available for registration in Luxembourg:
Our lawyers in Luxembourg can offer information on all types of partnerships available for registration in this country.
The general partnership, shortly known as SNC (Société en nom collectif) is the simplest form of business among all types of partnerships in Luxembourg. In order to create a general partnership in Luxembourg it suffices for two or more individuals or companies to agree to start a business. There is no restriction related to nationality of those setting up a general partnership in the Grand Duchy.
Unlike in other types of partnerships, the participants to a Luxembourg SNC will be held liable for the business’ debts and obligations with their personal assets in equal measure.
One of the greatest advantages of general partnerships in Luxembourg is that there are no requirements related to a minimum amount to start such a business. Also, compared to the registration of a company in Luxembourg, the SNC does not need articles of association, but only a partnership agreement which must be signed before a public notary in the Grand Duchy. The deed can also be drafted through a law firm in Luxembourg.
The participants, called general partners, must select a trade name which will be made up of their names. The general partnership must register with the Ministry of Small and Medium-sized Businesses, Tourism and Housing which will issue a trading license and it must also register with the Commercial Register in Luxembourg. Like any other company, the SNC must keep accounting records at its registered address in Luxembourg.
For full information on the requirements to open a general partnership in Luxembourg or for assistance in drafting the partnership agreement, do not hesitate to contact us.
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