LIQUIDATION 
IN LUXEMBOURG

Company liquidation in Luxembourg

Closing a company in Luxembourg is not simply an administrative formality, it is a structured legal process governed by the Law of 10 August 1915 on commercial companies. Liquidation involves settling all outstanding debts, finalising obligations with employees and creditors, and distributing remaining assets to shareholders before the company can be struck off the Luxembourg Business Register (RCS).

Liquidation in Luxembourg is the formal process of closing a company, settling its debts, and distributing remaining assets to shareholders.

Whether you are considering :

• a voluntary dissolution: initiated by shareholders when the company is solvent. 
• facing a judicial liquidation: imposed by the court in cases of insolvency or regulatory breaches., or 
• dealing with bankruptcy: managed under strict supervision, where assets are sold to cover debts in order of priority.

Each pathway requires strict compliance with statutory procedures, accounting standards (LuxGAAP or IFRS), and often regulatory filings with the CSSF if financial institutions are involved. Mistakes or delays can result in personal liability for directors, disputes with creditors, or tax penalties.

Understanding the legal framework and procedural steps is essential to protect your interests and comply with local regulations.