Frequently asked questions

The questions we are actually asked, companies and individuals.

We take between one and seven calls a day. More than 400 engagements since 2017. These are the real questions, grouped by profile, with our answers. Field data, not generic content.

Companies and entrepreneurs

Formation and structure

Can I set up a company in Luxembourg without being a resident?

Residence is not required to be a shareholder. Depending on the activity, a business permit and a director with genuine substance in Luxembourg may however be necessary. Company setup & lifecycle →

Do I need to travel to Luxembourg to set up my company?

Not necessarily. Most of it is handled remotely: KYC, documents, power of attorney. The notarial signature can be arranged by proxy depending on the structure. Company setup & lifecycle →

Can a company be formed in five days?

That is realistic for a simple structure once KYC is complete. The limiting factor is rarely registration, it is the bank file and the business permit. Company setup & lifecycle →

SARL, SARL-S or SA: which should I choose?

The choice depends on the capital you can lock in, the shareholding and the intended positioning. Minimum capital and the detailed comparison of the three forms are on the Company formation in Luxembourg page. Company setup & lifecycle →

Can a foreign company establish through a branch or a subsidiary?

Both routes exist, with different substance, VAT and accounting implications. We choose according to your objective. Company setup & lifecycle →

Can I buy a vehicle in my company's name?

Yes, under conditions. Deductibility, VAT treatment and benefit in kind depend on business use. We frame the arrangement before purchase. Accounting, accounts & closing →

What is a SOPARFI and when should it be used?

The financial participation company is the standard vehicle for holding shareholdings, with participation exemption under conditions. Holdings, SOPARFI & wealth →

Accounting and tools

Can you take over overdue accounting?

Yes. Entry review, identification of anomalies, regularisation, with no break in reporting obligations. Accounting, accounts & closing →

Who can file my annual accounts with the RCS?

A licensed accountant, via eCDF. We prepare and file on your behalf. Regulatory compliance →

When must I file my accounts?

Approval by the general meeting within six months of year-end, then filing with the RCS within one month of approval. Regulatory compliance →

Do you work with Odoo?

Yes. Configuration, Lux GAAP chart of accounts, automation of the accounting flow and team training. Accounting, accounts & closing →

Tax and VAT

I received an AED letter requesting a tax instalment. What should I do?

The instalment is an advance on estimated tax. It can be adjusted or contested based on your forecast result. We review the letter and reply to the administration. Tax, VAT & payroll →

What are the corporate tax rates?

Corporate income tax, the solidarity surcharge and municipal business tax combine. The aggregate rate depends on the municipality and the level of profit. Tax, VAT & payroll →

How do I obtain a VAT number?

Registration according to thresholds and activity. We handle the application, configuration and returns. Tax, VAT & payroll →

How does intra-Community VAT work?

A specific regime with reverse charge and VIES checks. We configure your flows and file the returns. Tax, VAT & payroll →

What is the participation exemption?

An exemption of dividends and capital gains under the holding conditions set out in article 166 LIR. Holdings, SOPARFI & wealth →

Payroll, governance and liquidation

I am a manager. Must I register with the CCSS?

In principle yes: a manager carrying out an activity falls under social security, with a status varying by shareholding and remuneration. Tax, VAT & payroll →

Can you run payroll for my employees?

Yes: payslips, CCSS affiliations, withholding tax, indexation. For employees, self-employed people and managers. Tax, VAT & payroll →

What is economic substance (ATAD) and why does it matter?

It is the company's economic reality in Luxembourg. It can contribute to establishing tax residence, without on its own determining it. Governance & directorship →

Do you provide a resident independent director?

Yes, within the permitted framework, with board meetings genuinely held locally and a documented substance file. Governance & directorship →

How do I liquidate my company?

Dissolution, appointment of a liquidator, settlement of liabilities, tax clearance, striking-off at the RCS. We run the whole process. Regulatory compliance →

Individuals and self-employed

Income tax return

Do you prepare personal income tax returns?

Yes, for residents and cross-border workers alike: tax classes, deductible expenses, foreign income, deadlines. Tax, VAT & payroll →

I am a cross-border worker, how does my return work?

Tax classes, income from both countries, double-taxation treaties. We optimise within the legal framework. Tax, VAT & payroll →

Which expenses can I deduct?

Professional expenses, loan interest, certain insurance premiums and contributions, depending on your situation. Tax, VAT & payroll →

I have foreign income. How do I declare it?

Under the applicable treaties, with exemption or tax credit. We integrate it correctly into your return. Tax, VAT & payroll →

I received a letter from the ACD. What should I do?

We review the letter, prepare the reply and liaise with the administration on your behalf. Tax, VAT & payroll →

Self-employed and international

How do I establish myself as self-employed?

Business permit where required, social affiliation, VAT and accounting. We frame each step. Company setup & lifecycle →

Must I charge VAT as a self-employed person?

It depends on the exemption threshold and your activity. We determine your regime. Tax, VAT & payroll →

Do you handle accounting for self-employed people?

Yes: bookkeeping, VAT, income tax return and CCSS follow-up, with advice included. Accounting, accounts & closing →

Can I set up or invest from abroad, outside the European Union?

Yes. We work with clients from Europe, China, the United States, Switzerland, the United Kingdom and elsewhere, in nine languages. Company setup & lifecycle →

General scoping

Services, timelines, languages and how the firm works

What services do you offer in Luxembourg?

Company formation, bookkeeping and annual accounts, tax and VAT, payroll/CCSS, consolidation, directorship and substance, compliance (AML/KYC, DAC6, CRS/FATCA), holding and fund structuring, and outsourced CFO, with a single point of contact.

How long does it take to set up a company?

Usually 2 to 3 weeks, at most one month, once the file is complete (KYC, capital deposit, notarial deed, RCS and RBE registration). A SARL-S can be faster.

When must annual accounts be filed?

Accounts must be approved by the general meeting within 6 months of the financial year-end, then filed with the RCS within one month of approval, i.e. within 7 months of the closing date. Late filing triggers penalties.

Is an approved statutory auditor mandatory?

It becomes mandatory when the company exceeds, over two consecutive years, two of these three thresholds: balance-sheet total EUR 7.5m, net turnover EUR 15m, 50 employees on average. Below that, a commissaire may suffice depending on the legal form.

What is the hourly rate of an accountant or expert-comptable in Luxembourg?

Indicatively, expect EUR 70-150/h for standard accounting and EUR 150-300/h for specialised advisory, whether the provider is a licensed accountant (comptable autorisé) or an expert-comptable. The distinction is worth understanding: the expert-comptable is a member of the Ordre des Experts-Comptables (OEC); the licensed accountant operates under a business permit from the Ministry of the Economy. Both keep your books, prepare your annual accounts and file them with the RCS. Financial Services Luxembourg acts as a licensed accountant (authorisation 10077274), and favours a fixed monthly fee over hourly billing: you know what you pay, and asking a question does not trigger an invoice.

Do I need a physical office in Luxembourg?

The company must have a registered office in Luxembourg. Domiciliation is provided by a partner attorney at law, registered on List I of the Bar roll, who contracts directly with you; we coordinate it and, where needed, the substance layer (governance, local director).

Which languages do you work in?

Mainly French and English. The firm serves an international client base (entrepreneurs, holdings, investors, funds, family offices).

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General information only, not individual legal or tax advice. Questions representative of enquiries actually received, anonymised.

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