How to open a company in Luxembourg in 2026: step by step

In short

• Almost all commercial and craft activities, and some liberal professions, require a business permit (autorisation d’établissement) before you can start.
• The right order is: activity and legal form, permit, capital and articles of association, registration with the RCS, VAT and social security.
• In 2026, the permit application costs 50 euros in chancellery fees, and the authorities have, in principle, up to 3 months to respond to a complete application.

Opening a company in Luxembourg is not difficult, but there is an order to it. People who skip steps end up waiting weeks for a document they should have requested at the start, or redrafting their articles of association because the corporate purpose does not match the permit.

This guide summarises the typical route for anyone who wants to set up a company (SARL or SARL-S) or establish themselves as a sole trader. Use it to find your way and to prepare the right questions before speaking to an accountant or notary.

1. Define your activity precisely

Everything starts here. The activity you describe will determine:

• whether you need a business permit, and of which type (commercial, craft or liberal profession);
• whether you have to prove a professional qualification (mandatory for most craft activities and for liberal professions that require a permit);
• which professional chamber supports you: the Chambre de Commerce (through the House of Entrepreneurship) or the Chambre des Métiers.

A common mistake is writing a corporate purpose that is too vague or too broad. If you later want to add an activity, you will have to apply for a new permit. It is worth thinking about the next two or three years, not just your first client.

2. Choose the legal form

The most common options for small businesses are:

• Sole trader (entreprise individuelle): no minimum capital, but you are liable with your personal assets.
• SARL: minimum capital of 12,000 euros, fully subscribed and paid up on incorporation, by notarial deed.
• SARL-S: capital between 1 and 12,000 euros, can be incorporated by private deed without a notary, reserved for natural persons.

We explain the differences in detail, with a comparison table, in the article SARL, SARL-S or sole trader.

3. Apply for the business permit

The business permit is issued by the Ministry of the Economy. The application is preferably made online, on MyGuichet.lu, with a LuxTrust certificate. In 2026, the chancellery fees are 50 euros, paid during the application itself.

To obtain it, the manager must meet these conditions:

1. Professional integrity (criminal record extract and sworn statement).
2. Professional qualification, where the activity requires it.
3. Appropriate physical premises in Luxembourg: an address that matches the nature and size of the activity.
4. Effective and permanent management: the permit holder must run the company day to day and have a genuine connection with it.
5. Tax and social security affairs in order, including in companies they have managed in the past.

The application is, in principle, processed within 3 months of receipt of the complete file. If there is no response within that period, the permit is deemed to have been tacitly granted. Note one detail: for a company, the final grant requires the articles of association to be filed with the RCS, so both tracks move forward in parallel.

The permit comes with a 2D barcode, which must appear on invoices, quotes, e-mails, your website and your shop window.

If you are a national of a country outside the European Union, the business permit application is submitted together with the application for a residence permit as a self-employed person, in a single file addressed to the ministry responsible for immigration.

4. Deposit the capital and prepare the articles of association

For an SARL, the capital of 12,000 euros is deposited into a bank account in the name of the company being formed. The bank issues a blocking certificate (certificat de blocage), which you hand to the notary. After incorporation, the notary issues the document that allows the funds to be released.

In practice, opening this account can take longer than expected: Luxembourg banks carry out demanding checks on identity and the source of funds. Start early and keep your business plan, identity documents and supporting documents to hand.

The articles of association set out the company name, registered office, corporate purpose, capital, management and operating rules. The name must be different from that of any existing company; availability is checked with the RCS.

5. Incorporation: notary or private deed

• SARL: the deed must be executed before a notary. The notary files the deed with the RCS within one month of signing and registers it with the tax authorities.
• SARL-S: can be incorporated by private deed. The electronic filing with the RCS, using LuxTrust, must be made within one month of signing, together with the business permit.

After filing, the deed is published in the RESA (the official electronic gazette for companies) on the same day or on a chosen date up to 15 days later.

Do not forget the Register of Beneficial Owners (RBE), also managed by the LBR: the company must declare the natural persons who own or control it.

6. VAT number from the AED

VAT registration is done with the Administration de l’enregistrement, des domaines et de la TVA (AED), through the initial declaration.

Since 1 January 2025, the small business VAT exemption scheme (régime de franchise) applies to businesses whose annual turnover in Luxembourg does not exceed 50,000 euros, with a 10% tolerance in the year the threshold is exceeded. Under this scheme:

• you do not charge VAT on your invoices, which must state “TVA non applicable – Article 57bis de la loi modifiée du 12 février 1979”;
• you do not recover VAT on your purchases;
• you must report the previous year’s turnover to the AED before 1 March.

The scheme is optional. If you work mainly with businesses and have significant expenses subject to VAT, it may pay to opt for the standard scheme. This is a decision to make with your accountant, right at the start.

7. Social security (CCSS)

Self-employed people register with the Centre commun de la sécurité sociale (CCSS) as self-employed.

In a company, the managing partner who holds the business permit and more than 25% of the shares is treated as self-employed. Curiously, registration is done using the form for registering an employee, not the one for the self-employed. If you applied for the permit on MyGuichet.lu, the pre-filled form is available in your professional area.

If you are going to hire staff, the company must also register as an employer with the CCSS before the first hire.

8. Bank account, accounting and the rest

Once the company is registered, the capital account becomes a current account. From here on:

• organise your accounting from day one (invoices, receipts, statements);
• confirm tax and VAT filing dates with your accountant;
• check your membership of the professional chamber and the insurance your activity requires;
• prepare your digital presence: website, Google profile and contact channels.

Typical timelines, in short

Every case is different, but the sequence is usually this:

Step	What depends on you	Reference timeline
Business permit	Complete and correct file	Up to 3 months after complete file (statutory deadline)
Account and blocking certificate	Documents and the bank’s response	Varies greatly from bank to bank
Notarial deed or private deed	Articles of association ready	Filing with the RCS within 1 month of signing
Publication in the RESA	Filing with the RCS	Same day or up to 15 days later
VAT and CCSS	Initial declarations	Immediately after registration

The factor that causes the most delays is almost always the same: incomplete documentation. A file that is well prepared first time saves weeks.

Mistakes we see often

• Starting to invoice before obtaining the business permit. Operating without a permit can lead to criminal penalties and the closure of the business.
• Using a “letterbox” address that does not correspond to real premises.
• Choosing the SARL-S without knowing that each person can only be a partner in one SARL-S at a time.
• Ignoring VAT in your prices: moving from the exemption scheme to the standard scheme changes the numbers overnight.

Next step

To organise all these steps on a single page, download our free framework Launch Your Company in Luxembourg. It includes the list of documents, the order of the steps and the decisions you need to make before seeing the notary. You can also order it already filled in by an In Digi consultant (AI-assisted) for €49.

If you would rather talk to us, book a one-hour consultation (€100 + VAT, deducted if you hire us within 90 days). We work with a licensed chartered accountant (expert-comptable) and support the incorporation process from start to finish, including the new company’s website and digital presence.

Sources

• Guichet.lu – Applying for a business permit
• Guichet.lu – Société à responsabilité limitée (SARL)
• Guichet.lu – SARL-S
• Guichet.lu – Blocage du capital social
• Guichet.lu – Dépôt des statuts au RCS
• Guichet.lu – Affiliation de l’indépendant
• AED / PFI – FAQ on the new small business VAT exemption scheme
• LBR – Luxembourg Business Registers (RCS and RBE)

General information only; it does not replace professional advice. Always check your situation with an accountant or lawyer.