Company Formation in Luxembourg

Luxembourg is a good destination to set-up your company to cater to the large EU Market. YourGlobalPro can assist in Luxembourg for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval, Trademark Registration and Citizenship Services.

About the Country

The Grand Duchy of Luxembourg (Luxembourg) is a landlocked country in western Europe sharing border with Belgium to the west and north, Germany to the east, and France to the south. The Country is one of the smallest sovereign states in Europe. The Luxembourgian passport 6th in the world as citizens had visa-free or visa-on-arrival access to 172 countries and territories. It is also one of the world’s best performers in environmental protection. The below content will explain you in detail about the requirements for company formation in Luxembourg, know more about the process of trademark registration in Luxembourg and understand the Luxembourg Legal and Compliance requirements.


Doing Business Introduction

The Country is having stable and high-income market economy features moderate growth, low inflation, and a high level of innovation. Luxembourg is ranked as the 2nd safest tax haven in the world due the Banking secrecy laws.

As per Doing business report of The World Bank –Luxembourg ranks 59 for 2017 survey. YourGlobalPro professionals can assist with any type of company formation, trademark registration and other recurring services for your business in Luxembourg.

Incorporation - Types of Business Entities

There are several types of entities that can be incorporated in Luxembourg are as mentioned below:

  • société anonyme (SA);
  • the limited liability company (GmbH);
  • the company en nom collectif (SNC);
  • the limited partnership (SCS);
  • the company limited by shares (SCA);
  • the cooperative society (CS);
  • the cooperative society functioning as a SA (COOPSA).

Time Frame for Incorporation of Company in Luxembourg varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. YourGlobalPro estimates the time required for the process of Company formation in Luxembourg to be completed is 25-30 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Luxembourg:

  • Efficient road, rail and air transport facilities and services
  • Electronic communications networks are significantly developed
  • Highest numbers of tax treaties with other countries
  • Profits that directly derive from a brand are subject to a very low tax percentage
  • working conditions strongly resemble those of other Western European countries
  • Political and social stability
  • Privileged geographical location
  • Freedom for cross-border financial and capital flows
  • Discretion and confidentiality in business

Tax Registration and Filing

The tax year coincides with the calendar year. In Luxembourg, all the Resident companies are subject to tax on their worldwide income.

Corporate Income Tax Rate 21 %
Capital Gains Tax Rate 21%
Branch Tax Rate 21%
Value-Added Tax 17%
Dividends 15%
Interest 10%
Royalties 0%
Branch Remittance Tax 0%
Tax Returns Must be filed before 31 May in the year following the fiscal year.
Tax Payment Payable within one month after receipt of the tax assessment notice.
Quarterly Advance Payments Paid quarterly by 10 March, 10 June, 10 September and 10 December for corporate income tax and by 10 February, 10 May, 10 August and 10 November for municipal business tax and net worth tax.
Tax Credit Available to Luxembourg resident companies for foreign-source income

Double Tax Treaty

Double Tax Agreements regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Luxembourg has double taxation treaties with about 80 countries.

Trademark registration

For trademark registration in Luxembourg application needs to be made to Benelux Office for Intellectual Property (BOIP). It takes approximately 4-6 months’ timeframe to complete the trademark registration process. A Trademark Registration in Luxembourg is valid for 10 years from the application date and can be renewed six months before the trademark right expires by payment of renewal fees for 10 years indefinitely.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Luxembourg for your business in Luxembourg. For assistance or advice in the matter of the trademark registration in Luxembourg or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Luxembourg:

  • Auditors are appointed for a period laid down by contract by the general meeting of shareholders or members of the entity or at the constitution of the entities
  • Must get the Account audited Annually – company first has to prepare the annual accounts
  • Proper records must be maintained by the companies
  • Convene the shareholders to the Annual General Meeting
  • Filing the approved accounts with the Trade and Companies Registers
  • Publishing by extract the decision of approval to the Luxembourg official gazette, if required

Accounting Services

In Luxembourg, all business entities are required to prepare full annual accounts including a balance sheet, a profit and loss account and notes to the annual accounts. However, it is optional for Non-listed small sized entities to file abbreviated annual accounts

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Luxembourg Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Luxembourg, the entities must have their annual accounts audited by one or more approved statutory auditors and members. All audit firms are required to carry out audits and express an opinion on the consolidated annual accounts as per the International Standards on Auditing (ISAs) as adopted for Luxembourg by the Commission de Surveillence du Secteur Financier (CSSF).

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide auditing services for business as required.


The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. The major banks in Luxembourg are Deutsche Bank, CACEIS Bank,  BCEE, Societe Generale, BGL BNP Paribas, BIL, UniCredit. In Luxembourg, there are 79 foreign-controlled banks from 23 countries and 19 domestic banks. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals can facilitates all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Luxembourg.

Legal and Compliance

In Luxembourg, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Luxembourg legal and compliance requirement to be followed by incorporated entities:

  • All the business entities are required to prepare annual accounts and file these at the Trade and Companies Register
  • File their annual accounts at the Trade and Companies Register within 1 month after the annual general meeting approving the accounts and deciding the profit allocation
  • Listed entities are required to prepare their consolidated annual accounts in accordance with International Financial Reporting Standards (IFRS).
  • Other entities have the option to prepare their annual accounts and consolidated annual accounts in accordance with accounting principles promulgated by Luxembourg Company Law.

YourGlobalPro professionals can assist on Luxembourg legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Luxembourg:

  • Standard working week consists of 40 hours
  • Employees need to be compensated by the employer for overtime or work completed outside of normal office hours at a premium rate
  • Employee get minimum of 5 weeks paid annual leave, in addition to public holidays.
  • Sunday work is forbidden
  • Many types of special leave allowed to the worker: for sport, education and cultural activities
  • Employees and self-employed persons must be covered by social security
  • Minimum wage for skilled workers is EUR 2,307.56 per month and for unskilled workers EUR 1,922.96 per month
  • When hiring foreign and Luxembourg wage earners, employers must notify the Labor Administration the Social Security Registration Authority
  • Before foreign worker must submit a written request for a temporary residence authorization to the Ministry of Immigration
  • Within three months after the date of arrival, the foreign worker must submit a form to obtain a definitive residence authorization (Issuing Request for a Residence Authorization)
  • Definitive residence authorization is valid for one year from the date of registration with the municipality

Country Statistics

Capital Luxembourg City
Largest City Luxembourg City
Total Area 2,586.4 Sq. Km.
Population 576,249
Density 222.8 / Sq. Km.
Currency Euro (u20ac) (EUR)
Government Unitary Parliamentary Constitutional Monarchy
Official Language French, German, Luxembourgish
Religion Roman Catholic (67%)
Protestant (3%)
Orthodox Christian (1%)
Other Christian (3%)
Muslim (3%)
Buddhist (1%)
Other religion (1%)
Non-religious/Agnostic (14%)
Atheist (6%)
Unknown (1%)
Government Offices Hours Monday to Friday (08:00-17:00 Hrs)
Business Offices Hours Monday to Friday (08:00-17:00 Hrs)
Banks and Exchange Houses Hours Monday to Friday from 8:30 a.m. to 5:00 p.m., except on the public and banking holidays

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