How to Open a Business in Luxembourg

Starting a business in Luxembourg can be very rewarding both in the short and long terms.

Luxembourg has a diversified economy. This includes e-commerce, research and development, health and environment, engineering and manufacturing. It is a good place to start a business due to the high quality infrastructure and a good Internet Communication Technology (ICT) infrastructure, making it easier and cheaper for businesses to conduct their operations efficiently. In addition, by starting a business in Luxembourg you will have the advantage of tapping into the professional environment of major accounting, legal and consulting firms.

Difficulty:

Moderate

Instructions

1. Settle on the type of business structure you want. There are several allowed options in Luxembourg, which include: sole proprietorship, partnerships, public companies or corporations, limited partnerships, partnerships limited by shares, limited liability companies and cooperative companies.

2. Apply for a business permit, which requires that the business owner is qualified to run the business. All crafts businesses, commercial and industrial businesses and independent professions require a permit. You need an application form, proof of identity, copies of school certificates, notarized certificate of nonbankruptcy and company stamp. The permit is obtained from the Business Permit Authority at:

   Ministère des Classes Moyennes - Service des Autorisations de Commerce

   6 Avenue Emile Reuter, L-2937 Luxembourg

   Tel: [phone]/24

   Fax: 478-740

3. Get a company name and logo to help in the identification and branding of your company. Business logo image by Max creative from Fotolia.com

   Register your company name. Reserve the name of the business with the commercial registry at a cost of EURO 6. Verify the availability of the name from the Trade and Companies Registrar. You will receive an electronic certificate indicating that the business name is available. This can be done within 24 hours.

4. Open a bank account. The account should be in the name of the business. You will have to deposit the statutory capital in this account. The bank will issue you a blocking certificate. The account will be unblocked once you present a notarial deed of incorporation.

5. Apply for business license. This takes 20 days to complete and the charges are 24 euros. The license can be obtained from the Ministry of Middle Classes when you submit a request and show proof of management skills. Documents you will need include a company stamp, copies of school certificates, the applicant's police record and identity card.

6. Get a business number. Obtain the number from the commercial registry. This number will be used to identify the business for official purposes, for instance when filing tax returns and when registering for social security.

Tips & Warnings

• Have all the documents required for the registration, including the application form, proof of identity, a tax stamp, certified copies of school certificates and an affidavit as you process each step of your business registration.

References

• Anglo Info: Starting a Business in Luxemborg
• Doing Business: Starting a Business in Luxemborg