BUSINESS SET UP Luxembourg

 

Step 1: Get the Business Licence online

Needed to Operate a Business The first step in establishing a business in Luxembourg is obtaining the Business license. Depending on the nature of your business, you may be required to obtain a business permit ("autorisation d'établissement") issued by the Ministry of the Economy. It applies to commercial activities, skilled trades, and certain liberal professions. You will be expected to provide the following: Proof of professional qualifications or experience Identity documents: passport or ID card A clean criminal record where applicable The application can be made both online and via official government procedures, and usually takes 2-6 weeks to get approval.

 

Step 2: Choose a Legal Structure and Register Your Company

Next, select a legal structure that fits your business model. The most common structures include: SARL - Limited Liability Company: this is suitable for small and medium-sized enterprises. SARL-S (Simplified Limited Liability Company): It is cheaper, and the minimum capital, which has to be deposited, is €1 only. SA (Public Limited Company): Suitable for large-scale enterprises. Once the structure has been decided upon, register as a company with the Luxembourg Business Register: this involves notarizing, by a Luxembourg notary, the legal articles of your company and proof of the regularity of an address, in addition to the evidence of the deposition of the commencement capital.

 

Step 3: Fulfill Tax and Administrative Obligations

The final step will be to register your business for tax purposes with the Luxembourg Inland Revenue. You also have to: -Register yourself and your employees (if any) with social security. -Register for value-added tax, based on your annual turnover. -Complete the declaration in the RBE for transparency in ownership. The company shall comply with all the continuing administrative requirements, including properly maintaining accounting records and submitting annual returns. This can be done through a qualified accountant or an accounting consulting service.