Luxembourg Business Services Overview
About Luxembourg Setting up a Business in
The Luxembourg corporate legislation defines six forms of entity through
which business can be carried out from Luxembourg. Each of these 6 forms has a
legal personality distinct from that of its members. The choice of legal form
depends on economic and legal considerations (e.g. the extent of members’
liability, the extent to which shares are transferable, etc).
No company may adopt a name giving rise to confusion with that of an existing
The principal forms normally used are:
In practice, the SA and SARL have proved to be the most popular. The main
features of these two corporate forms are presented in the summary table below:
The Luxembourg constitution of 1868 guarantees to every citizen the freedom
of trade and industry, as well as the freedom to establish a business.
However, in the interest of industry and commerce and in order to guarantee
the administrative supervision of the business environment of the country, local
legislation lays down some specific conditions for access to and exercise of
trades and occupations.
Under the law of 28 December 1988, a government permit is required for any
industrial or trade activity to be carried out in Luxembourg. The permit is
issued by the Ministry of Middle Classes based on the applicant’s professional
qualifications and good standing. The permit is strictly personal, and cannot be
transferred to other persons. Legal entities, including partnerships, must apply
in the same way as physical persons, demonstrating necessary professional
qualifications and good standing of the firm’s management.