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How to set up a business
in Luxembourg

 

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There are several steps you will need to take to set up a company in Luxembourg : acquiring necessary permits, choosing the suitable legal form, dealing with residence permits, visas and social security affiliations etc. We have put together a practical guide to walk you through the different steps.

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Apply for your business permit

All businesses established in Luxembourg must acquire the necessary governmental permits. Commercial, skilled craft and industrial activities as well as certain liberal professions are subject to a business permit.

Define your company’s legal form

Whatever the size and nature of their business, it is crucial for entrepreneurs to choose a legal form that suits their activity (sole proprietorship or company).

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Handle immigration issues

Any third-country national (a person who is not an EEA national – i.e. from an EU Member State, Iceland, Norway and Liechtenstein – or a Swiss Confederation national) planning to stay in Luxembourg for a period exceeding three months (90 days) must apply for a residence permit before entering the territory.

Explore financing and support measures

Companies that establish a sustainable presence in Luxembourg can draw on several financing and support measures that help them expand their activities, develop innovative concepts and products and strengthen their competitiveness. (Investment aid, Young innovative enterprise measure, R&D and innovation, PHD and Postdoctoral research).  

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Learn about taxation

Companies in Luxembourg are subject to corporate tax and have to apply value added tax (VAT) to their products and services. Individuals are taxed based on their personal situation.

Affiliate to the social security system

All companies need to fill in an operating declaration and a declaration of start of employment to the Joint Social Security Centre, which handles the data, registration of affiliations and collection of contributions for the different insurance funds.

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Settle down with your family 

Luxembourg is an attractive place to live and offers an excellent work-life balance. Short commutes enable you to maintain a healthy and well-balanced family and social life. Luxembourg City ranks 1st out of 230 cities in terms of safety according to Mercer's Quality of Living Survey, 2019. 

 Receive an international education

Luxembourg's offer in terms of schooling constantly grows all over the country in order to welcome more international pupils and students. School attendance is compulsory between the ages of 4 and 16 years and includes a minimum of twelve years, divided between primary and secondary school. 

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Business creation: information, advice and administrative procedures

Making entrepreneurship easy is a priority. The House of Entrepreneurship offers free information and personalised advice to aspiring entrepreneurs and managers of established businesses on topics such as the creation, sale or acquisition of a company, in particular in the area of right of establishment, and legal and tax matters.

Detailed information and required forms covering a large number of administrative matters can be found on Luxembourg’s business portal Guichet.lu.

Download the full brochure "How to set up a business in Luxembourg":