What are the key steps to create your company in Luxembourg?

Step 1: Build a solid business plan

Once your idea is clear, the first step is to create your business plan. A true roadmap, this document turns your vision into a concrete, coherent action plan. It helps you anticipate, convince, and succeed.

Whether you are starting a new business or taking over an existing one, a well-designed business plan allows you to:

• clearly present your mission, concept, and objectives;
  
• highlight the key people in the project and their skills;
  
• showcase your strengths and identify areas for improvement;
  
• define your target market and competitive advantage;
  
• specify your commercial and marketing strategies to reach your clients;
  
• structure your operational organization (HR, technical, logistics);
  
• establish a complete financial forecast: funding needs, costs, revenue, profitability, etc.
  

A solid business plan demonstrates the feasibility, viability, and growth potential of your project. It is also an essential tool to convince partners, investors, or financial institutions and obtain the resources needed to launch or develop your business.

Step 2: Obtain your business permit

Whether you are self-employed or creating a company to conduct commercial, craft, or liberal activities in Luxembourg, a business permit is essential to operate legally.
Some professions are regulated and require specific prerequisites. In most cases, you will need to provide supporting documents such as:

• Diplomas or Master Craftsman Certificates;
  
• Proof of professional qualifications;
  
• Documents confirming your good standing and establishment in Luxembourg.

How to prepare your application?

1. Check whether your activity is regulated on portail.lu
2. Submit the application online or by post
3. Pay the administrative fees
4. Gather the required documents:

• ID card;
  
• Draft articles of association (if creating a company);
  
• Diplomas and qualifications;
  
• Proof of establishment in Luxembourg;
  
• Business plan.
  

5. Submit your application

Step 3: Choose the appropriate legal structure

Choosing the legal structure is a strategic decision: it influences the operation of your business, your responsibilities, taxation, and organization.
The first question to ask yourself: will you start alone or with partners?

Here are the main legal structures in Luxembourg:

• Sole proprietorship (auto-entrepreneur): ideal if starting alone, simple structure but unlimited personal liability;
  
• General partnership (SENC): at least two partners;
  
• Limited partnership (SCS): one general partner and one or more limited partners;
  
• Private limited liability company (SARL): very common for SMEs, minimum capital EUR 12,000;
  
• Simplified private limited liability company (SARL-S): simplified version, minimum capital EUR 1;

For more ambitious projects, there are structures such as Public Limited Company (SA), Cooperative Company (SC), or European Company (SE).

Tip: criteria to compare before choosing

• Partner liability;
  
• Minimum required capital;
  
• Governance and organization;
  
• Taxation;
  
• Growth and fundraising potential.
  

Take the time to carefully analyse these factors: your choice will impact the daily management and the protection of your assets.

Step 4: Find financing

Financing is often the key to make your project a reality. To convince partners or investors, you must present a solid business plan with a financial forecast for 2 to 4 years. This document demonstrates profitability and your ability to meet financial commitments.
What are the financing options in Luxembourg?

• Banks.
  A bank loan remains the most common solution to start or take over a business. Discover our financing solutions here.
• Public grants
  The Luxembourg government and certain organizations offer grants to support business creation, innovation, and energy transition.
  
• Private investors
  They may inject funds in exchange for equity.
  
• Crowdfunding
  Less common in Luxembourg, it allows raising funds from the public.
  

Good to know:
The Mutualité de Cautionnement can act as guarantor if you do not have the required collateral for your bank.

Step 6: Open a professional bank account

Opening a professional bank account in Luxembourg is an essential step to start your activity. However, it can be complex and time-consuming due to legal and administrative requirements, often involving many back-and-forth exchanges with the bank.
To simplify this process, the ABBL offers a practical guide to help you:

• understand the required documents;
  
• establish an effective relationship with your bank;
  
• anticipate the steps for smooth banking management.
  

At BGL BNP Paribas, we do everything possible to make this step faster and simpler thanks to solutions tailored to entrepreneurs and SMEs.

Step 7: Capital blocking for incorporation

For certain legal forms, such as the SARL, it is legally mandatory to deposit the share capital into a Luxembourg IBAN bank account blocked in the name of the company being incorporated. This step is essential before registration.

How does this work?

• Once the capital is deposited, the bank issues a certificate for the notary.
  
• This certificate allows the signing of acts and registration with the Trade and Companies Register (RCS).
  
• After the signature, the account is unblocked and the capital becomes operational.

Did you know?

Notarial intervention is not always required: for a SARL S, formalities are simplified.
For a standard SARL, the notary drafts and signs the articles and handles the filing and publication with the RCS.
 

Step 8: Post creation formalities

Once your company is created, several essential steps remain to ensure compliance and start your activity smoothly:

• Check registration with the LBR: Make sure the registration is complete and that the number has been assigned;
  
  
• Register for VAT: As soon as your revenue exceeds EUR 35,000, you must apply for registration with the AED;
  
  
• Register with the CCSS: For social security coverage for your business and your employees;
  
  
• Tax declarations: Register your company with the tax authorities.

Once these formalities are completed, all you have to do is :move to your premises, set up your resources, tools, and internal processes… and launch your business with peace of mind!