How to open a company in Luxembourg

Small countries are always a good place to start a business from a logistics point of view. In Europe, one of the best-positioned is Luxembourg, as it is located right in the heart of the continent. Moreover, the Grand Duchy is one of the primary seats of European Union institutions such as the European Commission and Council, so sharing a country with them makes the idea of having a company there even more appealing. So, discover below how exactly to do that.

Choose a legal form for your future company

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You cannot simply register a Luxembourg company without knowing anything about the legal forms you can use. In this case, asking professional advice is recommended; however, here are the entities that are often employed by locals:

• the private limited liability company, which is by far the best option for most operations, but also pocket-friendly;
• the public company, which could be an option if you aim to start a financial business, for example;
• the sole proprietorship, if you want to start small, or you want to carry out a profession.

Make sure you meet the registration requirements

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Before starting the incorporation procedure, you should make sure you prepare everything you need. By everything, you should understand not only documents, but also certain preparations, such as securing a legal seat or registered address for your company – after all, your business will be located in Luxembourg.

With respect to the documents, pay attention to foreign ones: they need to be translated and certified, so you should do that before or at the same time you draft the other paperwork.

The documents

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You don’t need to worry, as the application file is not a big one when you set up a company in Luxembourg. You must draft or have drafted:

• the Articles of Association, if you decide on a private or public limited liability company;
• the company name reservation form;
• your ID or passport, depending on your country of origin;
• a proof of address – a recent utility bill is accepted;
• a proof of address for the director, as well;
• the document attesting to the legal seat of the company – the fastest option is the virtual office.

Company incorporation: Where and how

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All the documents listed above must be submitted to the Companies Register. With respect to the how part, you have two options: online or in person. But, if you plan to come from another country just to register your company, also make sure to check the entry requirements and whether you need a visa or not. Otherwise, there are plenty of professional firms that can represent you without having to worry about anything.

The remaining steps

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Once you register the company, there are a few more steps to complete:

• open the bank account to deposit the capital;
• register for taxation;
• apply for a business permit.

This is a general presentation of how to open a company in Luxembourg, no matter if you are a local or a foreign entrepreneur seeking to make profits in one of the most exclusive economies in the European Union. With this information at hand, all you need to do is decide on the best business form for you.

 

This content is provided for informational purposes only and is not a substitute for professional advice. AFP editorial staff were not involved in the creation of this content.