The establishment of a company in Luxembourg involves the following steps:
- Verify the uniqueness of the company name and reserve it with the Trade and Companies Register
- Open a bank account, deposit the initial capital, and obtain an escrow certificate
- Have the company deed drafted and notarized by a notary public
- Register the company at the one-stop shop, which includes registering the articles of association with the tax administration and the Trade and Companies Register
In case of limited liability companies proposed to be set-up by natural persons, the government has introduced simplified business forms, wherein the companies can be formed by a notarial deed or a private agreement, and registration/ formation time is just 1 day. The simplified procedure also envisages lower establishment costs, as compared to other legal entity forms.
Following registration, the incorporation deed is published in the Official Gazette and a release certificate is issued to the bank along with a copy of the deed to release the initial capital
In addition to the company registration, a business license/permit must be obtained in order to conduct business in Luxembourg. The process is typically done at the same time as the registration process.
Application for the license/permit is made with the Ministry of Middle Classes for a commercial activity or with the Ministry of Economy and Foreign Trade for an industrial activity. The application includes the submission of the following:
- Application form
- Copy of applicants ID
- Articles of association
- Documentation providing proof of knowledge of business management for operating the company
- Verification of non-bankruptcy
- Applicants police record
Total time to complete the company registration process is 5 to 6 days, and 15 days for the licensing process.