Company Set Up In Luxembourg
The Grand Duchy of Luxembourg is a viable choice for interested business investors. Despite being one of the smallest members of the European Union, Luxembourg has one of the highest GDP per capita in the world.
With over 600,000 residents, this country enjoys extremely high standards of living and low unemployment. Strategically positioned in the heart of Western Europe and surrounded by some of the strongest European economies, Luxembourg is the ideal destination for business owners looking to expand outside their jurisdiction.
Luxembourg’s economy predominantly relies on the service sector, which is one of the most developed in the world. However, that doesn’t mean that the country doesn’t have an equally-prosperous industrial side; abundant natural resources such as timber and iron ore are also present here.
Some of Luxembourg’s thriving sectors include freight shipping, satellite and transmission, steel production, and e-commerce. Biotechnology, health, and television broadcasting are also lucrative investment opportunities.
Luxembourg is a popular choice among foreign investors for many reasons. Some of them are the large financial sector, continuous economic growth, and excellent infrastructure that enables the export of local industrial products.
Forms Of Companies In Luxembourg
- S.A.R.L “Société à responsabilité limitée”—Private Limited Company
- S.A “Société anonyme”—Public Limited Liability Company
- S.C.S “Société en commandite simple”—Limited Partnership
- S.C.Sp “Société en Commandite Spéciale”—Special partnership
What is the difference between S.A.R.L and S.A companies in Luxembourg?
To register a S.A.R.L. company in Luxembourg, there has to be a minimum of 1 and a maximum 40 partners. The requirements for registration of S.A.R.L. are various, such as a diploma or proof of managing experience for the Manager of the company. Depending on the activity of the company, permits or certificates must be obtained. CompyCo will determine required steps for each client depending on your business’s activities. Lastly, we will register the company with the tax authorities and apply for a VAT number if needed.
The minimum deposit required to set up an S.A. in Luxembourg is 31 000 EUR, all of which must be paid upfront. S.A has to have a minimum of 1 director if there is 1 shareholder. If there are more shareholders, there has to be a board of 3 directors. One of these will be the Elected Chief Executive of the company.
Fundamentals Of A Limited Liability Company
Corporate Tax in Luxembourg | VAT in Luxembourg |
|---|---|
25% | 16% |
Fundamentals of limited liability companies in Luxembourg
| Limited liability company | SARL |
| Minimum Share capital | 12500 EUR |
| Registered office required | Yes |
| Physical office required | No |
| Min. number of Shareholders | 1 called partner |
| Min. number of Directors | 1 |
| Local Director required | No |
| Other requirements | Trade license |
| Bank signatory must travel | In some cases |
| Timescale for company formation | 30 days |
| Timescale for bank account opening | 14 day |
| Timescale for obtaining VAT number | 7 days |
| Statutory audit requirements | Yes |
| Shelf companies available | No |
How can I set up my company in Luxembourg?
Luxembourg is often considered an ideal location for foreign company owners, thanks to its strategic proximity to lucrative European markets.
CompyCo has the experience and network to coordinate company formation in Luxembourg, acting as your guide throughout the process. The entire process typically takes about 4 weeks.
The first step is selecting your company’s name and obtaining approval from the relevant authorities. Before drafting the Memorandum and Articles of Association, certain documents must be collected. Based on the residency of shareholders and directors, as well as your business activities and prior experience, CompyCo can help you identify which documents are required.
The Memorandum and Articles of Association must be notarized in Luxembourg, and a bank account needs to be opened to pay the share capital. Once these steps are complete, CompyCo can coordinate registration with the Trade Register and guide you in obtaining any necessary licenses, ensuring your business is legally compliant and ready to operate.
Setting up a company outside your jurisdiction can be daunting, especially when you’re unfamiliar with local laws and regulations.
Company formation in Luxembourg is a straightforward process for both foreign and national investors. With the guidance of experienced company formation agents, you can focus on making the most of your investment without worrying about procedural details. CompyCo has the experience and network to coordinate these processes, connecting you with local professionals across financial, HR, and legal sectors.
Serving as your single point of contact, CompyCo helps ensure a smooth flow of information between you and the local incorporation agents, simplifying communication and keeping you informed every step of the way.
Bank Account Opening
With one of the highest rate of international banks in Europe, Luxembourg’s sophisticated banking sector powers the businesses in the country. Of the 144 international and local banks in the country, you have plenty of choice when deciding who to partner with on your business venture.
One of the initial steps of setting up a new company in Luxembourg is opening a bank account with your preferred bank. Since the share capital needs to be deposited before you can begin registering your company, a corporate bank account is essential.
As one of Europe’s most important financial centers, Luxembourg’s efficient banking system makes it incredibly easy to set up a bank account. With an extensive network of professionals in the financial sector and relationships with many of the country’s leading banks, CompyCo can connect you with a bank that’s most likely to open your corporate account. One of the most important factors that your approval depends on is the nature of your business activity; our experts will gain insight from you and guide you on the banks that will work best for your needs.
After depositing the share capital, the bank will issue a blocking certificate that gives the green signal for the incorporation process to continue.
Learn more about opening a bank account here.
Accounting & Taxation
The accounting and taxation obligations to take into consideration are:
- The tax year is the calendar year in Luxembourg
- Trading profits, sale of assets more than their original cost, and investments are all considered taxable profits
- Every business has to maintain their accounting books
- In Luxembourg, the corporate tax rate is 25%
- The current VAT rate is 17% on most goods and services. Exceptions apply depending on the type of products or service
- Luxembourgish companies are issued VAT numbers with the format of the country code LU followed by a 9-digit number
How can you employ staff in Luxembourg?
Hiring the right employees is a key step toward business success. Once your company is registered with the Trade Register, you can hire according to Luxembourg’s local legislation.
Before accessing Luxembourg’s diverse and dynamic workforce, your company must register for pension benefits, social security, and work insurance. This process can be challenging, especially when operating from abroad. CompyCo has the experience and network to coordinate these steps, helping you manage employment requirements remotely where possible.
From employment contracts to work permits for non-EU citizens, CompyCo can connect you with local HR professionals and guide you through Luxembourg’s labor market.
Whether you need a single remote employee or a larger team, your solutions can be tailored to your unique needs, covering employment agreements, recruitment, and payroll services, while keeping operations cost-efficient.
Have any questions? Take a look at our HR services page for more information about our International HR services!
Register a Company in Luxembourg
Luxembourg Company Register: How To Find Your Luxembourg Company
Luxembourg is not a new country by any means, but it is one that is quickly gaining traction as a business destination. In addition to its low taxes and regulations, Luxembourg also offers a wealth of business-friendly services and infrastructure. One of the benefits of doing business in Luxembourg is that you are required to register your company with the Ministère du Développement économique et Financier (MDECF). This guide will teach you how to do just that. Once you have registered your company, make sure to keep track of all the legal proceedings and updates related to your company. By doing so, you will be able to protect your investments and maintain control over your company’s future.
What is a company register?
A company register is a document that lists the names and addresses of all the companies registered in Luxembourg. A company register can be obtained from the government offices that administer it. The main purpose of a company register is to keep track of the business activities of all the companies registered in Luxembourg.
Where can I find my company register?
If you are looking for a company register in Luxembourg, there are a few options open to you. The Office du Commerce et de l’Industrie (OCI), the country’s business registry, publishes a list of all registered companies every week on its website. You can also access the register through the Companies Registry Portal, which is operated by the Registry of Societies and Associations (RSSA).
You can also search for companies through the Commercial Register database, which belongs to Luxembourg’s tax authority, the Direction Générale des Finances Publiques (DGFiP). This database contains information on all commercial entities registered with DGFiP.
How to use my company register?
If you’re looking to establish a company in Luxembourg, there are a few things you’ll need to do first. The first is to register with the relevant authorities, which can be done through the Ministry of Economy and Finance. Once you’ve registered your company, you’ll need to start filling out some important paperwork. This includes registering your company’s name, filing an annual report, and appointing a management team. You’ll also need to make sure that your company has the correct legal form and is in good standing with the authorities. If everything looks good, you can finally start trading as a Luxembourg company!
Conclusion
If you’re planning on setting up a business in Luxembourg, it’s important to be familiar with the company register. This document contains all the information you’ll need to establish your company, including its name and registered office. In addition, the company register provides access to public records and financial data. So if you’re looking to start or expand your business in Luxembourg, make sure you know where to find the company register.
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