INCORPORATE
A BUSINESS
IN LUXEMBOURG
Starting a Business in Luxembourg:
Your Comprehensive Guide on How to incorporate a business in Luxembourg
When embarking on a business venture, either by establishing a new setup or acquiring an existing one, one definitely needs to go through or execute the administrative formalities involved.
Such procedures for your business would include:
-gaining the business license,
-filing VAT registration,
-submit the RBE in a month,
-declare company and director to CCSS,
-further declaring with tax authorities like ACA, and
-providing notifications to the Luxembourg Business Register (LBR).
Find out how to take advantage of tax benefits in Luxembourg and receive a complete checklist of required documents.
Almost 20 years of expertise in company formation services are bundled herein for ambitious entrepreneurs, SMEs, and international investors.
Save time, avoid mistakes, and join the ranks of successful companies thriving in Luxembourg.
Why Choose Luxembourg for Your Business?
Luxembourg is known for its:- business-friendly environment,
- tax regim (SOPARFI) is attractive and competitive with a lot of benefits, and
- strategic location in the heart of Europe.
By following our expert guide, you’ll navigate the complexities of business registration and management with confidence.
Contact Us to incorporate a business in Luxembourg Let's talk about your Luxembourg private limited company requirements
LUXEMBOURG company REGISTRATION
WANT TO REGISTER A COMPANY IN LUXEMBOURG
SARL-S
Starting from €690
- ⚠ ONLINE OFFER
- SARL-S PACKAGES
- Min. capital: 1€
- Scope of services:
- ✅ KYC Compliance
- ✅ First call
- ✅ Article of incorporation drafting
- ✅ LBR Filling
SARL
€2500
- ⚠ SPECIAL OFFER
- SARL PACKAGE
- Min. capital: 12 000 €
- Scope of services:
- ✅ KYC Compliance
- ✅ First call - Choose type
- ✅ Article of incorporation drafting
- ✅ LBR filling
- Not included:
- 🚫 Notary fees
SA
€4500
- SPECIAL OFFER
- SA PACKAGE
- Société anonyme
- Min. capital: 32 000 €
- Scope of services :
- ✅ KYC Compliance
- ✅ First call - Choose type
- ✅ Article of incorporation drafting
- ✅ LBR Filling
- Not included:
- 🚫 Notary fees
- 🚫 Applying for business licence
PACK PREMIUM FAST DELIVERY
Starting from €7500
- SPECIAL OFFER
- PACK FAST DELIVERY
- SARL-S / SARL / SA
- Incorporation offer include:
- ✅ KYC Compliance
- ✅ First call - Choose type
- ✅ Fast delivery
- ✅ Applying for Business licence
- ✅ Article of incorporation drafting
- ✅ LBR Filling
- ✅ Notary fees
- ✅ Filling bank form
- ✅ Criminal record request
- See our offers for:
- ➡ VAT registration
- ➡ Diploma conversion
- ➡ Documents translation
- ➡ Criminal record checks
- ➡ No bankruptcy attestation
- ➡ Funds blocking attestation
COMPANY SET UP - BUSINESS FORMATION
Guide for Company formation in Luxembourg
Start Your Business Journey in Luxembourg
Unlock the full potential of Luxembourg’s thriving and dynamic business environment with our personalized support and expert company formation services.
Whether you’re a startup, entrepreneur, or investor, we help you navigate the complexities of establishing a business in one of Europe’s most strategic and innovative hubs.
You need to create a company in Luxembourg
Your Path to Business Success in Luxembourg
Starting a business in Luxembourg has never been more seamless.With Financial Services, you gain access to:
- Expert Guidance: Decades of experience to ensure every phase of your company setup is straightforward and efficient.
- Strategic Advice: Whether launching a commercial enterprise, setting up a Luxembourg holding company, or beginning as a freelancer, we ensure you make informed decisions every step of the way.
Tailored Solutions for Investors
Luxembourg is a premier destination for investors seeking:
- Outstanding Opportunities: Leverage Luxembourg’s tax-efficient frameworks and strong financial ecosystem.
- Special Limited Partnerships (SCSPs): Our expertise ensures optimal structuring and management of investment funds and agreements.
- Maximized Returns: Expert advice on tax optimization and regulatory compliance to enhance profitability.
Our Services at a Glance
- Luxembourg Commercial Companies
- Comprehensive support for legal, administrative, and financial requirements.
- Build a solid foundation for sustainable growth.
- Holding Companies in Luxembourg
- Streamlined asset management with secure and efficient holding structures.
- Independent Businesses in Luxembourg
- Simplified incorporation processes and strategies for long-term success.
- Luxembourg Investment Funds
- Expert guidance on launching and managing SCSP funds, with a focus on compliance and tax optimization.
Why Choose Financial Services?
- Extensive Expertise
- Over 20 years of experience in Luxembourg’s legal, financial, and business landscape.
- Customized Solutions
- Every business is unique. We craft bespoke strategies tailored to your goals, from incorporation to ongoing management.
- Full-Service Support
- From registration to compliance, we provide end-to-end solutions to help you focus on what matters most: growing your business.
- Global Network
- Leverage our industry connections in Luxembourg and beyond to support your success.
Let’s Make Your Business Idea a Reality
Take the first step toward launching your company in Luxembourg today.Whether you’re an entrepreneur, investor, or business leader, our team is here to guide you with expertise and precision.
Contact us now to explore the limitless potential of Luxembourg’s business environment.
Your success starts here with Us
START YOUR BUSINESS IN LUXEMBOURG
Starting point
"New business" or Acquire an "Existing one"
Deciding to establish a new business or acquire an existing one involves navigating through essential:
Administrative procedures
Obtaining necessary authorizations (Business licence) and,
Selecting the appropriate legal framework for the company.
Key steps include securing establishment permits, making initial VAT and tax declarations, and completing registration with the Luxembourg Business Register.
BUSINESS LICENCE APPLICATION
WANT TO APPLY FOR BUSINESS LICENCE
COMPANY NAME SELECTION
Starting from €100
- Company name selection
- Included:
- ✅ CHECK NAME
- ✅ LBR FEES
APPLYING BUSINESS LICENCE
Starting from €1400
- Busines licence
- Scope of services :
- ✅ KYC
- ✅ FIRST CALL
- ✅ APPLYING BUSINESS LICENCE
BANK ACCOUNT OPENING
Starting from €1200
- Bank account opening
- Basic package for resident
- Scope of services:
- ✅ KYC
- ✅ FIRST CALL
- ✅ BANK OPENING
BUSINESS PLAN FOR BANK
Starting from €350
- Business plan for bank
- Included:
- ✅ First call
- ✅ Data collection
- ✅ 3 Years business plan (Excel format)
DIPLOMA CONVERSION
€650
- SPECIAL OFFER
- Convert your diploma for Luxembourg
- Included:
- ✅ Data collection
- ✅ Diploma conversion
- See our offer for:
- ➡ Documents translation
DOCUMENTS TRANSLATION
€600
- SPECIAL OFFER
- With local translator
- Included:
- ✅ Data collection
- ✅ Translation
VAT REGISTRATION
Starting from €160
- Busines licence
- Included:
- ✅ KYC Compliance
- ✅ Data collection
- See our offers for:
- ➡ Bank account opening
- ➡ Applying Business licence
- ➡ Address in Luxembourg
- ➡ Diploma conversion
COMPANY TAKEOVER
Starting anew or seizing an existing venture
Contemplating the journey of entrepreneurship involves crucial decisions for any aspiring business owner.
One must carefully weigh the paths available:
Starting anew or seizing an Existing venture?
In certain sectors, acquiring a business offers distinct advantages such as immediate access to established infrastructure, a seasoned team, and an existing client base.
These elements not only expedite the launch but also facilitate strategic planning for future growth and revenue.Opting for a business takeover is a time-saving strategy, bypassing the need for scouting premises, recruiting and training staff, and devising a launch strategy from scratch.
To ensure a seamless transition, it is essential to align your entrepreneurial vision with your professional competencies and personal strengths, while also considering the available capital.
Thorough preparation significantly enhances the likelihood of a prosperous business acquisition.
Financial Services, in collaboration with esteemed Law firms, presents a comprehensive guide featuring a myriad of opportunities for company transfers and takeovers within the Grand Duchy.
Our dedicated Incorporation Services team at Financial Services stands ready to support you through every stage of the process.
Gain further insights with our complimentary training video on "Company Registration in Luxembourg" tailored for entrepreneurs.
Reach out to us via email at info@financialservices.lu or call us directly at +352 661 198 544 to embark on this transformative journey.
BUSINESS IDEA
Every entrepreneurial journey begins with an idea
A seed of intuition or aspiration that evolves over time. Regardless of its origin or nature, professional background, or specific expertise, developing and challenging your idea before launching a business is crucial.
The first step involves creating a roadmap and conducting an initial feasibility study to analyze the opportunities and challenges ahead.
Interacting with experienced individuals and seeking their observations and advice is essential during this phase.
This process must be approached rigorously to ensure that the idea transforms into a tangible project.
The realization of the idea hinges on the entrepreneur, encompassing their strengths, weaknesses, skills, personal circumstances, and expectations.
It is imperative for every aspiring entrepreneur to identify their existing competencies and areas for improvement objectively.
This self-assessment enables them to gauge their potential realistically and seek partnerships or additional training to acquire new skills.
Challenge and structure your idea with Financial Services, which offers guidance from inception to business launch.
Contact US via the contact form to embark on your entrepreneurial journey.
BUSINESS SET UP | FINANCIAL SERVICES
Get essential guidance for business setup in Luxembourg. Explore the steps, regulations, and requirements needed to successfully set up a company in the region.
01
APPLYING FOR A BUSINESS LICENCE IN LUXEMBOURG
Before applying for a business license in Luxembourg, identify the specific business activity you intend to engage in. Different types of businesses may require different licenses or permits.
02
CHOOSE A LEGAL FORM SARL, SARL-S, SA ou SAS
Explore the ideal legal structure for your business with expert guidance. Navigate the complexities of company formation effortlessly and choose the right legal form for your venture's success.
03
IMMIGRATION PROCESS
Embark on your journey to Luxembourg with confidence. Navigate the immigration process seamlessly with expert assistance, ensuring a smooth transition to your new life and opportunities in this vibrant European destination.
04
FINANCING & SUBSIDIES
Unlock financing opportunities and secure subsidies for your ventures in Luxembourg. Let our experts guide you through the intricate process, ensuring optimal funding solutions to fuel your growth and innovation.
05
LUXEMBOURG TAXATION
Master taxation in Luxembourg with precision and ease. Our seasoned professionals navigate the intricate tax landscape, ensuring compliance and optimizing strategies to maximize your financial efficiency and success.
06
SOCIAL SECURITY
Dive into the realm of social security in Luxembourg with savvy and sophistication. Our seasoned guides unravel the complexities, sculpting tailored solutions to safeguard your workforce and navigate the intricacies of employee benefits with finesse and flair.
BUSINESS LICENCE LUXEMBOURG
Applying for business licence
Once your business concept is clearly defined, the next crucial step is determining the necessary authorizations to effectively launch your project.
In Luxembourg, all commercial, craft, and industrial activities are subject to compulsory authorization under the "Business licence," as mandated by the Luxembourg legislator.
The business permit must be sought by the company's head from the General Directorate for Small and Medium-Sized Enterprises of the Ministry of the Economy.
To secure this authorization, applicants must meet several key criteria:
Fixed premises in Luxembourg
Professional qualification corresponding to the activity: While commercial sector activities generally require no specific qualifications, certain specialized activities may necessitate qualifications, even up to a university degree.
Professional integrity
Navigating these requirements ensures a smooth path to obtaining your business permit and launching your venture successfully.
Explore more about the process and how we can assist you by contacting us via our contact form or directly at +352 661 198 544.
LEGAL FORMS OF BUSINESS IN LUXEMBOURG
Exploring Company Types for Registration in Luxembourg
Beyond obtaining necessary authorizations, selecting the right legal form is paramount, tailored to your activity and personal circumstances.
This decision carries significant weight, influencing the operations and outcomes of your new venture across financial, social, and tax realms.
Exploring the range of legal structures allows for a thorough analysis of their respective benefits and drawbacks in relation to your project and individual situation.
Ensure you make an informed choice that aligns perfectly with your aspirations.
Connect with us through our contact form or reach out directly at +352 661 198 544 to embark on this pivotal decision-making journey.
Let's shape the future of your business together.
LUXEMBOURG PRIVATE LIMITED COMPANY REQUIREMENTS
In Luxembourg, there are several legal forms under which companies can operate.
Here are the main types:
Public Limited Company (Société Anonyme - SA):
Requires a minimum share capital of EUR 30,000.
Shares can be freely transferred.
Suitable for large businesses with significant capital needs.
Private Limited Company (Société à Responsabilité Limitée - SARL):
Requires a minimum share capital of EUR 12,000.
Restrictions on share transfer.
Suitable for smaller businesses and startups.
Partnerships:
General Partnership (Société en Nom Collectif - SENC): All partners are jointly and severally liable.
Limited Partnership (Société en Commandite Simple - SECS): Composed of general partners (liable) and limited partners (liable up to their contribution).
Branch of a Foreign Company:
A foreign company can establish a branch in Luxembourg, subject to registration and compliance with local regulations.
Cooperative Company (Société Coopérative - SC):
Operates based on cooperative principles.
Can be formed as a public or private limited company or a partnership.
European Company (Societas Europaea - SE):
Allows for the creation of a single European entity, suitable for cross-border operations within the EU.
European Cooperative Society (Societas Cooperativa Europaea - SCE):
Allows cooperatives to operate across European borders under a unified legal framework.
Each type of company has its own requirements regarding formation, governance, share capital, liability, and taxation.
Choosing the right legal form depends on factors such as the size of the business, the number of shareholders, the desired level of liability protection, and the specific business objectives, including international expansion plans.
TALK TO AN EXPERT
Engage directly with our team of dedicated experts for trusted guidance on seamlessly incorporating your business and efficiently managing your funds.
BUSINESS PLAN AND FORMALITIES
REQUIERT ASSISTANCE AT ALL STEPS
BANK ACCOUNT OPENING
Starting from €1500
- Bank account opening
- Essential package
- For resident
- Scope of services:
- ✅ KYC
- ✅ FIRST CALL
- ✅ FILL BANK FORM FOR BANK OPENING
- ✅ RBE
- ✅ REGISTRATION CCSS
- ✅ VAT REGISTRATION
BUSINESS PLAN FOR BANK
Starting from €350
- Business plan for bank
- Included:
- ✅ First call
- ✅ Data collection
- ✅ 3 Years business plan (Excel format)
APPLYING BUSINESS LICENCE
Starting from €1400
- Busines licence
- Scope of services :
- ✅ KYC
- ✅ FIRST CALL
- ✅ APPLYING BUSINESS LICENCE
DIPLOMA CONVERSION
€650
- SPECIAL OFFER
- Convert your diploma for Luxembourg
- Included:
- ✅ Data collection
- ✅ Diploma conversion
- See our offer for:
- ➡ Documents translation
DOCUMENTS TRANSLATION
€600
- SPECIAL OFFER
- With local translator
- Included:
- ✅ Data collection
- ✅ Translation
VAT REGISTRATION
Starting from €160
- Busines licence
- Included:
- ✅ KYC Compliance
- ✅ Data collection
- See our offers for:
- ➡ Bank account opening
- ➡ Applying Business licence
- ➡ Address in Luxembourg
- ➡ Diploma conversion
COMPANY NAME SELECTION
Starting from €100
- Company name selection
- Included:
- ✅ CHECK NAME NOT ALREADY IN USE
- ✅ LBR FEES
EXPLORE LUXEMBOURG'S DYNAMIC BUSINESS ENVIRONMENT
Your Gateway to Success!
Register your SARL-S in Luxembourg with Confidence
Start Your Company Today!
We take care of everything in 1 month !
-Business licence
-Article of association
-VAT Registration
-RBE declaration
We take care of everything in 1 month !
-Business licence
-Article of association
-VAT Registration
-RBE declaration
F.A.Q
0. What is KYC?
1. What is KYC, and why is it important for accounting firms?
KYC, or Know Your Customer, refers to the process of verifying the identity and assessing the risk associated with clients to prevent fraud, money laundering, and other financial crimes. For accounting firms, KYC ensures compliance with regulatory requirements, builds trust with clients, and mitigates risks associated with serving potentially high-risk individuals or entities.
2. What information is typically collected during the KYC process?
During the KYC process, accounting firms collect various information from clients, including personal details (name, address, date of birth), identification documents (passport, driver's license), business ownership structure, source of funds, and nature of business activities. This information helps assess the client's identity, assess the risk level, and ensure compliance with regulatory obligations.
3. How does the KYC process benefit clients of the accounting firm?
By implementing robust KYC procedures, our accounting firm ensures the integrity and security of client relationships. Clients can trust that their information is handled confidentially and securely, reducing the risk of identity theft, fraud, or financial misconduct. Additionally, KYC compliance demonstrates our commitment to ethical business practices and regulatory compliance, providing clients with peace of mind and confidence in our services.
4. Is KYC compliance mandatory for all clients of the accounting firm?
Yes, KYC compliance is mandatory for all clients of our accounting firm, regardless of the nature or size of their business. This requirement is essential for fulfilling regulatory obligations, maintaining the integrity of our services, and safeguarding against financial crime risks. Rest assured, our KYC procedures are designed to be efficient, non-intrusive, and conducted with the utmost respect for client privacy and confidentiality.
5. How does the accounting firm ensure the security and confidentiality of client information collected during the KYC process?
Our accounting firm employs industry-leading security measures and strict confidentiality protocols to safeguard client information collected during the KYC process. This includes encrypted data transmission, restricted access to sensitive information, and regular security audits to ensure compliance with data protection regulations. Clients can trust that their information is handled with the highest level of care and integrity.
6. Can clients provide electronic copies of identification documents for the KYC process?
Yes, clients can provide electronic copies of identification documents for the KYC process, subject to verification and validation procedures. Our accounting firm utilizes secure online platforms and encrypted communication channels to facilitate the submission and processing of electronic documents, ensuring compliance with regulatory requirements while maintaining the convenience and efficiency of digital processes.
7. How often is the KYC information updated for existing clients of the accounting firm?
KYC information for existing clients is regularly reviewed and updated as part of our ongoing due diligence process. The frequency of updates depends on various factors, including changes in regulatory requirements, significant changes in the client's business activities or ownership structure, or the identification of new risk factors. Clients can expect periodic requests for updated information to ensure continued compliance with KYC regulations.
8. What happens if a client fails to provide the required KYC information to the accounting firm?
Failure to provide the required KYC information may result in the inability to onboard or continue providing services to the client. KYC compliance is a legal and regulatory requirement, and our accounting firm is committed to upholding the highest standards of integrity and compliance. We work closely with clients to facilitate the KYC process and ensure a smooth and efficient onboarding experience while adhering to regulatory obligations.
9. How does the accounting firm keep clients informed about changes or updates to KYC procedures?
Our accounting firm maintains open communication channels with clients to keep them informed about changes or updates to KYC procedures. This includes providing regular updates via email newsletters, website announcements, or direct communication with dedicated client relationship managers. Clients are encouraged to reach out to our team with any questions or concerns regarding KYC compliance or related procedures.
10. How can clients of the accounting firm access assistance or support with the KYC process?
Clients can access assistance or support with the KYC process by contacting our dedicated client services team or their designated client relationship manager. Our team is available to provide guidance, answer questions, and assist clients throughout the KYC onboarding process, ensuring a seamless and efficient experience. We are committed to providing exceptional client service and support at every stage of the relationship.
KYC, or Know Your Customer, refers to the process of verifying the identity and assessing the risk associated with clients to prevent fraud, money laundering, and other financial crimes. For accounting firms, KYC ensures compliance with regulatory requirements, builds trust with clients, and mitigates risks associated with serving potentially high-risk individuals or entities.
2. What information is typically collected during the KYC process?
During the KYC process, accounting firms collect various information from clients, including personal details (name, address, date of birth), identification documents (passport, driver's license), business ownership structure, source of funds, and nature of business activities. This information helps assess the client's identity, assess the risk level, and ensure compliance with regulatory obligations.
3. How does the KYC process benefit clients of the accounting firm?
By implementing robust KYC procedures, our accounting firm ensures the integrity and security of client relationships. Clients can trust that their information is handled confidentially and securely, reducing the risk of identity theft, fraud, or financial misconduct. Additionally, KYC compliance demonstrates our commitment to ethical business practices and regulatory compliance, providing clients with peace of mind and confidence in our services.
4. Is KYC compliance mandatory for all clients of the accounting firm?
Yes, KYC compliance is mandatory for all clients of our accounting firm, regardless of the nature or size of their business. This requirement is essential for fulfilling regulatory obligations, maintaining the integrity of our services, and safeguarding against financial crime risks. Rest assured, our KYC procedures are designed to be efficient, non-intrusive, and conducted with the utmost respect for client privacy and confidentiality.
5. How does the accounting firm ensure the security and confidentiality of client information collected during the KYC process?
Our accounting firm employs industry-leading security measures and strict confidentiality protocols to safeguard client information collected during the KYC process. This includes encrypted data transmission, restricted access to sensitive information, and regular security audits to ensure compliance with data protection regulations. Clients can trust that their information is handled with the highest level of care and integrity.
6. Can clients provide electronic copies of identification documents for the KYC process?
Yes, clients can provide electronic copies of identification documents for the KYC process, subject to verification and validation procedures. Our accounting firm utilizes secure online platforms and encrypted communication channels to facilitate the submission and processing of electronic documents, ensuring compliance with regulatory requirements while maintaining the convenience and efficiency of digital processes.
7. How often is the KYC information updated for existing clients of the accounting firm?
KYC information for existing clients is regularly reviewed and updated as part of our ongoing due diligence process. The frequency of updates depends on various factors, including changes in regulatory requirements, significant changes in the client's business activities or ownership structure, or the identification of new risk factors. Clients can expect periodic requests for updated information to ensure continued compliance with KYC regulations.
8. What happens if a client fails to provide the required KYC information to the accounting firm?
Failure to provide the required KYC information may result in the inability to onboard or continue providing services to the client. KYC compliance is a legal and regulatory requirement, and our accounting firm is committed to upholding the highest standards of integrity and compliance. We work closely with clients to facilitate the KYC process and ensure a smooth and efficient onboarding experience while adhering to regulatory obligations.
9. How does the accounting firm keep clients informed about changes or updates to KYC procedures?
Our accounting firm maintains open communication channels with clients to keep them informed about changes or updates to KYC procedures. This includes providing regular updates via email newsletters, website announcements, or direct communication with dedicated client relationship managers. Clients are encouraged to reach out to our team with any questions or concerns regarding KYC compliance or related procedures.
10. How can clients of the accounting firm access assistance or support with the KYC process?
Clients can access assistance or support with the KYC process by contacting our dedicated client services team or their designated client relationship manager. Our team is available to provide guidance, answer questions, and assist clients throughout the KYC onboarding process, ensuring a seamless and efficient experience. We are committed to providing exceptional client service and support at every stage of the relationship.
1. What are the different legal structures available for companies in Luxembourg?
In Luxembourg, the main legal structures available for companies are:
- Société Anonyme (SA): A public limited company.
- Société à Responsabilité Limitée (SARL): A private limited liability company.
- Société en Nom Collectif (SNC): A general partnership.
- Société en Commandite Simple (SCS): A limited partnership.
- Société en Commandite par Actions (SCA): A partnership limited by shares.
- Société Coopérative (SC): A cooperative company.
2. What are the key steps involved in registering a business in Luxembourg?
Registering a business in Luxembourg involves several key steps we will take care with you:
- Choose a Legal Structure: Decide on the appropriate legal form for your business, considering factors like liability, taxation, and ownership.
- Name Reservation: Verify the availability of your chosen business name with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés - RCS) and reserve it if necessary.
- Draft Articles of Association: Prepare the Articles of Association (statuts) outlining key details about your company, including its purpose, shareholders, and management structure.
- Open a Bank Account: Establish a business bank account with a Luxembourg-based financial institution and deposit the required share capital.
- Notarial Deed: Have the Articles of Association notarized by a Luxembourg notary public.
- Registration with RCS: Submit the notarized Articles of Association and other required documents to the RCS for registration.
- Obtain Tax Identification Numbers: Register for tax identification numbers with the Luxembourg Tax Administration (Administration des Contributions Directes - ACD) for corporate income tax, VAT, and other applicable taxes.
- Apply for Business Licenses: Depending on your business activities, obtain any necessary licenses or permits from relevant authorities.
- Register with Social Security: If hiring employees, register with the Luxembourg social security system (Centre Commun de la Sécurité Sociale - CCSS) for employer contributions.
- Compliance and Ongoing Requirements: Ensure ongoing compliance with regulatory obligations, such as filing annual financial statements and maintaining corporate records.
3. What are the requirements for obtaining establishment authorization in Luxembourg?
Obtaining establishment authorization in Luxembourg typically involves fulfilling the following requirements:
- Business Plan: Prepare a comprehensive business plan outlining your proposed activities, market analysis, financial projections, and organizational structure.
- Legal Form Selection: Choose an appropriate legal structure for your business, considering factors such as liability, taxation, and ownership.
- Registered Office: Have a registered office address in Luxembourg where official communications can be sent and where company records are kept.
- Share Capital: Depending on the chosen legal form, contribute the required minimum share capital to the company's bank account.
- Notarial Deed: Draft the Articles of Association (statuts) detailing key aspects of the company's operation and have them notarized by a Luxembourg notary public.
- Appointment of Directors: Appoint directors or managing partners to oversee the company's affairs, if applicable.
- Compliance Checks: Ensure compliance with anti-money laundering (AML) regulations by providing due diligence documentation for shareholders, directors, and beneficial owners.
- Application Submission: Submit the required documents, including the notarized Articles of Association, to the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés - RCS) for registration.
- Tax Registration: Register for tax identification numbers with the Luxembourg Tax Administration (Administration des Contributions Directes - ACD) for corporate income tax, VAT, and other applicable taxes.
- Additional Permits or Licenses: Depending on the nature of your business activities, obtain any necessary permits or licenses from relevant authorities.
4. How do I register for VAT in Luxembourg, and what are the associated obligations?
To register for VAT in Luxembourg and understand associated obligations, follow these steps:
1. Eligibility: Determine if your business exceeds the mandatory VAT registration threshold, currently set at EUR 35,000 for taxable supplies of goods and services.
2. Application Submission: Complete the VAT registration application form and submit it to the Luxembourg Tax Administration (Administration de l'Enregistrement et des Domaines - AED).
3. Supporting Documents: Provide necessary supporting documents, such as proof of business establishment, identification documents, and relevant financial records.
4. VAT Number Allocation: Upon approval, you will receive a VAT identification number (TVA number) from the AED.
5. Compliance Obligations: Fulfill various VAT compliance obligations, including:
- Charging VAT on taxable supplies of goods and services.
- Issuing VAT invoices to customers in accordance with Luxembourg VAT regulations.
- Submitting periodic VAT returns detailing taxable transactions and VAT amounts collected and paid.
- Paying VAT liabilities to the tax authorities within specified deadlines.
- Maintaining accurate VAT records and supporting documentation for audit purposes.
6. Intrastat Reporting: If your business engages in cross-border trade within the EU, comply with Intrastat reporting requirements by submitting statistical declarations on intra-EU movements of goods.
7. Recapitulative Statements: File recapitulative statements (EC Sales Lists) if supplying goods or services to VAT-registered customers in other EU member states.
8. VAT Rates and Exemptions: Familiarize yourself with Luxembourg VAT rates and exemptions applicable to different goods and services.
9. Reverse Charge Mechanism: Understand and apply the reverse charge mechanism for certain transactions involving services received from non-established suppliers.
10. Continuous Compliance: Stay informed about changes in VAT regulations and ensure ongoing compliance with all VAT obligations to avoid penalties and sanctions.
Seeking assistance from tax advisors or professionals specializing in Luxembourg VAT matters can provide guidance tailored to your business's specific needs and ensure compliance with VAT regulations.
1. Eligibility: Determine if your business exceeds the mandatory VAT registration threshold, currently set at EUR 35,000 for taxable supplies of goods and services.
2. Application Submission: Complete the VAT registration application form and submit it to the Luxembourg Tax Administration (Administration de l'Enregistrement et des Domaines - AED).
3. Supporting Documents: Provide necessary supporting documents, such as proof of business establishment, identification documents, and relevant financial records.
4. VAT Number Allocation: Upon approval, you will receive a VAT identification number (TVA number) from the AED.
5. Compliance Obligations: Fulfill various VAT compliance obligations, including:
- Charging VAT on taxable supplies of goods and services.
- Issuing VAT invoices to customers in accordance with Luxembourg VAT regulations.
- Submitting periodic VAT returns detailing taxable transactions and VAT amounts collected and paid.
- Paying VAT liabilities to the tax authorities within specified deadlines.
- Maintaining accurate VAT records and supporting documentation for audit purposes.
6. Intrastat Reporting: If your business engages in cross-border trade within the EU, comply with Intrastat reporting requirements by submitting statistical declarations on intra-EU movements of goods.
7. Recapitulative Statements: File recapitulative statements (EC Sales Lists) if supplying goods or services to VAT-registered customers in other EU member states.
8. VAT Rates and Exemptions: Familiarize yourself with Luxembourg VAT rates and exemptions applicable to different goods and services.
9. Reverse Charge Mechanism: Understand and apply the reverse charge mechanism for certain transactions involving services received from non-established suppliers.
10. Continuous Compliance: Stay informed about changes in VAT regulations and ensure ongoing compliance with all VAT obligations to avoid penalties and sanctions.
Seeking assistance from tax advisors or professionals specializing in Luxembourg VAT matters can provide guidance tailored to your business's specific needs and ensure compliance with VAT regulations.
5. Is it necessary to have a physical office address in Luxembourg to set up a company?
C'est l'un des endroits que vous pouvez utiliser pour ajouter des réponses FAQ sur votre site Web. Vous pouvez modifier tout ce texte et le remplacer par tout ce que vous voulez répondre pour votre client. Modifiez votre page FAQ à partir de l'onglet Pages en cliquant sur le bouton Modifier.
6. What taxes are applicable to companies operating in Luxembourg, and how are they calculated?
Yes, it is a legal requirement to have a physical office address in Luxembourg to set up a company.
This address serves as the official registered office of the company and is where official communications, notices, and legal documents are sent.
The registered office address must be a physical location where the company's statutory books and records are maintained and accessible for inspection by relevant authorities.
It's important to ensure compliance with this requirement when establishing a company in Luxembourg.
We work with local company which offer a professionnal service for registering an address in Luxembourg.
This address serves as the official registered office of the company and is where official communications, notices, and legal documents are sent.
The registered office address must be a physical location where the company's statutory books and records are maintained and accessible for inspection by relevant authorities.
It's important to ensure compliance with this requirement when establishing a company in Luxembourg.
We work with local company which offer a professionnal service for registering an address in Luxembourg.
7. Can foreign nationals or non-residents establish a company in Luxembourg?
Foreign nationals or non-residents are indeed permitted to establish a company in Luxembourg, contributing to the country's vibrant and diverse business landscape. Luxembourg's business-friendly policies and its status as an international financial center make it an attractive destination for entrepreneurs from around the world.
However, the process of establishing a company in Luxembourg as a foreign national or non-resident involves adherence to specific legal requirements and procedures. These may include:
However, the process of establishing a company in Luxembourg as a foreign national or non-resident involves adherence to specific legal requirements and procedures. These may include:
- Legal Structure: Choose an appropriate legal structure for the company, such as a Société Anonyme (SA), Société à Responsabilité Limitée (SARL), or others, considering factors like liability, taxation, and ownership.
- Residency Requirements: While there are generally no residency requirements for shareholders or directors of a Luxembourg company, appointing a local director may be necessary in certain cases to fulfill regulatory obligations.
- Registered Office: Have a registered office address in Luxembourg where official communications and legal documents can be sent and where company records are kept. This address must be a physical location in Luxembourg.
- Representation: If the company does not have a physical presence in Luxembourg, it may need to appoint a local representative or agent to act on its behalf for certain administrative purposes.
- Legal Compliance: Ensure compliance with all legal and regulatory requirements for company formation, including submitting necessary documentation, obtaining permits or licenses if required, and adhering to anti-money laundering (AML) regulations.
- Tax Considerations: Understand the tax implications of establishing a company in Luxembourg, including corporate income tax, VAT, and other applicable taxes, and seek advice from tax professionals to optimize tax planning.
8. What are the ongoing compliance requirements for companies registered in Luxembourg?
For companies registered in Luxembourg, ongoing compliance with regulatory requirements is essential to maintain legal standing and operate smoothly. Some of the key ongoing compliance requirements include:
- Annual Financial Statements: Prepare and file annual financial statements in accordance with Luxembourg accounting standards. These statements typically include a balance sheet, profit and loss statement, and notes to the financial statements.
- Corporate Income Tax Returns: Submit annual corporate income tax returns to the Luxembourg Tax Administration (Administration des Contributions Directes - ACD) within the specified deadline. This includes reporting taxable income, deductions, and tax credits.
- VAT Returns: File periodic VAT returns detailing taxable transactions and VAT amounts collected and paid. VAT returns are typically submitted quarterly or monthly, depending on the company's turnover and VAT obligations.
- Annual General Meeting (AGM): Hold an annual general meeting of shareholders to approve financial statements, elect directors or managers, and address other corporate matters. Private limited liability companies (SARLs) and public limited companies (SAs) are required to hold AGMs.
- Shareholder Register: Maintain an up-to-date shareholder register, detailing the names, addresses, and shareholdings of all shareholders. This register must be kept at the registered office of the company and made available for inspection by shareholders and authorities.
- Annual Statutory Filings: Make annual filings with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés - RCS) to update corporate information, such as changes in directors, registered office address, or share capital.
- Compliance with Industry Regulations: Comply with any industry-specific regulations or licensing requirements applicable to the company's activities. This may include obtaining permits, licenses, or certifications from relevant authorities.
- Employment Law Compliance: Adhere to Luxembourg employment laws and regulations, including labor contracts, working hours, employee benefits, and health and safety requirements.
- Corporate Governance: Implement effective corporate governance practices to ensure transparency, accountability, and compliance with legal and ethical standards.
- Regulatory Updates: Stay informed about changes in laws, regulations, and tax policies affecting the company's operations in Luxembourg and adjust business practices accordingly.
9. Are there any specific industry regulations or licensing requirements to consider when starting a business in Luxembourg?
When starting a business in Luxembourg, specific industry regulations and licensing requirements may apply depending on the nature of the business activities.
Some industries are subject to sector-specific regulations and may require permits, licenses, or authorizations from relevant authorities. Here are a few examples:
Some industries are subject to sector-specific regulations and may require permits, licenses, or authorizations from relevant authorities. Here are a few examples:
- Financial Services: Companies operating in the financial services sector, including banking, insurance, investment funds, and asset management, are regulated by the Commission de Surveillance du Secteur Financier (CSSF). They may need to obtain licenses or approvals from the CSSF to operate legally.
- Professional Services: Certain professions, such as lawyers, accountants, auditors, and architects, are subject to professional regulations and licensing requirements administered by professional bodies or chambers. Practitioners may need to fulfill specific education, training, and registration criteria to practice their profession in Luxembourg.
- Healthcare and Pharmaceuticals: Businesses involved in healthcare services, pharmaceuticals, medical devices, and related activities are regulated by the Ministry of Health and may require permits or authorizations to operate. This includes compliance with healthcare standards, licensing for healthcare facilities, and approval for the sale or distribution of pharmaceutical products.
- Food and Beverage: Companies engaged in food production, distribution, catering, or food service activities must comply with food safety and hygiene regulations enforced by the Ministry of Agriculture, Viticulture, and Rural Development. They may need to obtain hygiene certificates, food handling permits, or approvals for specific food products.
- Transportation and Logistics: Businesses operating in transportation, logistics, freight forwarding, or customs clearance services may need to comply with regulations administered by the Ministry of Mobility and Public Works. This includes obtaining licenses or permits for road transport, freight forwarding activities, or operating certain types of vehicles.
- Construction and Real Estate: Companies involved in construction, real estate development, property management, or architectural services must adhere to building codes, zoning regulations, and construction standards enforced by municipal authorities and the Ministry of Housing.
- Environmental Regulations: Businesses with potential environmental impacts, such as manufacturing, energy production, waste management, or chemical processing, must comply with environmental regulations administered by the Ministry of the Environment, Climate, and Sustainable Development. This includes obtaining permits for emissions, waste disposal, or environmental impact assessments.
10. How long does it typically take to complete the company registration process in Luxembourg?
The timeline for completing the company registration process in Luxembourg can vary depending on various factors, including the chosen legal structure, the complexity of the company's activities, and the efficiency of the administrative process. However, in general, the company registration process in Luxembourg can typically be completed within a few weeks to a couple of months.
Here's a rough breakdown of the steps involved and their estimated durations:
Here's a rough breakdown of the steps involved and their estimated durations:
- Preparation and Notarization of Documents: This stage involves preparing the necessary documents, such as the Articles of Association, and having them notarized by a Luxembourg notary public. This process usually takes a few days to a week, depending on the availability of the parties involved and any revisions required.
- Submission to the Trade and Companies Register (RCS): Once the documents are notarized, they are submitted to the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés - RCS) for registration. The RCS typically processes registrations within a few days to two weeks, depending on the workload and any additional documentation required.
- Obtaining Tax Identification Numbers: After company registration, the next step is to obtain tax identification numbers from the Luxembourg Tax Administration (Administration des Contributions Directes - ACD). This process can take a few days to a couple of weeks, depending on the complexity of the application and any additional information required.
- Opening a Bank Account: The company will need to open a bank account with a Luxembourg-based financial institution. This process can vary depending on the bank's requirements and may take anywhere from a few days to a couple of weeks.
- Compliance Checks and Additional Permits: Depending on the nature of the business activities, there may be additional compliance checks or permits required from regulatory authorities. The duration of this process can vary significantly depending on the specific requirements and any potential delays in obtaining approvals.