On February 2nd 2015 the draft law N°6777 having the purpose of creating a simplified private limited liability company (Société à responsabilité limitée simplifiée) (SàrlS) amending the law of August 10th 1915, on commercial companies, as amended (the "Draft Law 6777") was filed.
"The Draft Law 6777 intends to stimulate the development of the entrepreneurial spirit."
In compliance with the Luxembourg governmental program presented in December 2013, the Draft Law 6777 intends to stimulate the development of the entrepreneurial spirit by creating, for entrepreneurs that are natural persons, a legal structure that not only offers a protection in terms of personal liability, but also enhances their visibility.
Indeed, one of the toughest hurdles to overcome for young entrepreneurs or those that have access to limited resources is constituted by the minimum required capital necessary for the setting up of a company. Henceforth, the Luxembourg government wished to provide, through the creation of the SàrlS, entrepreneurs with a legal structure that will enjoy a simplified, fast and efficient setting-up process and allow for the reduction of costs that the incorporation of a company usually implies.
The main characteristics of the Draft Law 6777 are as follows:
- only natural person(s) shall be authorised to incorporate a SàrlS, which may be created for a limited or unlimited period of time;
- the subscribed corporate capital shall be comprised between Euro 1 and Euro 12,394.68; and
- the management shall be reserved to natural person(s) only.
For further information on the SàrlS please see our dedicated Newsflash of February 2015.