Business set up Luxembourg

 

Step 1: Obtain the Necessary Business Permits

The first step to establishing a business in Luxembourg is securing the required authorizations. Depending on the nature of your business, you may need a business permit ("autorisation d’établissement") issued by the Ministry of the Economy. This applies to commercial, skilled trades, and certain freelance professions. You'll need to prepare: Proof of professional qualifications or experience Identification documents (passport or ID card) A clean criminal record (if applicable) The application process can be completed online or through official government channels, and it generally takes 2-6 weeks for approval.

 

Choose a Legal Structure and Register Your Company

Next, select a legal structure that suits your business model. Common structures include: SARL (Limited Liability Company): Ideal for small to medium enterprises. SARL-S (Simplified Limited Liability Company): A cost-effective option for startups with a minimal capital requirement of €1. SA (Public Limited Company): Suitable for larger enterprises. Once the structure is chosen, register your company with the Luxembourg Business Register (LBR). This requires submitting the company’s articles of incorporation, prepared and notarized by a Luxembourgish notary. You'll also need to provide proof of your registered business address and initial capital deposit.

 

Fulfill Tax and Administrative Obligations

The final step involves registering your business for tax purposes with the Luxembourg Inland Revenue (Administration des Contributions Directes). You'll also need to: Enroll in social security for employees and yourself if self-employed. Register for VAT, depending on your annual turnover. Complete the RBE (Register of Beneficial Owners) declaration for transparency regarding ownership. Ensure compliance with all ongoing administrative requirements, including maintaining proper accounting records and submitting annual returns. Hiring a professional accountant or consulting service can streamline these processes.