Setting up a business in Luxembourg
26 October 2009by Ina Dimireva -- last modified 28 October 2009
An overview of the process of starting a new business in Luxembourg and useful information on the documents required.
Legal requirements
Within the Grand Duchy of Luxembourg, company law is governed by the law on commercial companies, as well as by articles 1832 to 1873 of the Civil Code.
Civil Code, articles 1832 to 1873
Legal forms of company
Every entrepreneur must seek a description available on the website of the Trade and Companies Register, in order to then choose the legal form of company, namely:
- sole trader (most suitable for small companies);
- commercial company.
Seeking a company name on the website of the Trade and Companies Register
Information brochure - Dare to be an entrepreneur
Forms of support
The various forms of financial support offered by the Grand Duchy of Luxembourg may be extremely useful for establishing a company. In the same way, the process preceding establishment plays a major role in the outcome of the project.
Access to finance — European Union
Process prior to establishment
Administrative procedures
The Centre de formalités (Chamber of Trades) and the Espace entreprises (Chamber of Commerce) represent a reception and assistance point for formalities and administrative procedures for creators of companies.
Centre de formalités - Chamber of Trades
Espace entreprises - Chamber of Commerce
Every company requires an establishment authorisation, which is issued on demand by the Ministry of Small Enterprises and Traders. Activities subject to autorisation include all commercial activities (crafts, industry and trade) as well as trade-related liberal professions (architects, engineers, surveyors, tax advisers, accountants and financial advisers).
Creation of a company - formalities
Administrative steps - simplified diagram
In addition to the authorisation of the establishment, the entrepreneur must take a certain number of other steps, such as:
- registration with the Trade and Companies Register;
- requesting a value added tax (VAT) number from the Administration de l'enregistrement et des domaines;
- initial declaration to the Direct Tax Administration;
- initial declaration to the Centre commun de la sécurité sociale;
- registration with professional chambers.
Forms of the Direct Tax Administration
Forms of the Centre commun de la sécurité sociale
If the entrepreneur is seeking to recruit staff, they must indicate their human resources requirements to the Employment Administration.
Resources
The Companies portal proposes numerous services to future company directors, from advice and project evaluation to the provision of online forms.
From the idea to the establishment project
Information file on the establishment of a company
The Luxembourg innovation and research portal collects information on existing aids which benefit creators of companies with an innovative character.
Luxembourg innovation and research portal
Sharing new ideas — Luxembourg
Conducting research — Luxembourg
Personalised help and advice
The Chamber of Commerce (commerce, industry and services) and the Chamber of Trades (crafts) offer entrepreneurs their support.
The Guichet unique PME (Single service point for small and medium-sized companies) provides free assistance to companies and creators of companies established in one of the 21 municipal authorities which participate in the project. Among other things, it offers individualised advice and training courses.
Participating municipal authorities
In order to promote innovative entrepreneurs, Luxinnovation, the National Agency for the promotion of innovation and research, assists creators of innovative companies in their approaches and undertakes to introduce them to technological partners.
The Enterprise Europe Network provides businesses with information and advice through its local partners.
Enterprise Europe Network – contact points – Luxembourg
SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.
SOLVIT – contact points – Luxembourg
Source: European Commission
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