Luxembourg · Operating company

An operating company in Luxembourg, ready to trade

For trading, services, IT, consulting and e-commerce: the S.à r.l., the business permit Luxembourg requires before you trade, VAT registration, payroll and the office that makes it all work. We set it up and run the compliance side, so you can sell.

Free first call. Fixed quote within one business day.

At a glance
CompanyS.à r.l. (EUR 12,000) or SARL-S
Business permitRequired before trading
VAT17% standard
Corporate taxFrom 14% up to EUR 175,000
TimelinePermit decision within 3 months
Holding or operating?

A trading company is not a holding with a website

Luxembourg treats an operating company very differently from a holding. The permit, the office and the manager decide whether you can start at all.

Holding

Owns shares, does not trade

No business permit, no VAT in most cases, a domiciliation address can do.

  • Participation exemption on dividends and gains
  • Minimum net wealth tax each year
  • Board meetings and books in Luxembourg
Operating company

Sells goods or services

Needs a business permit, a real place of business, a manager who runs it and VAT registration.

  • Business permit (autorisation d'établissement)
  • Fixed establishment, not only a domiciliation
  • VAT returns, payroll if you hire, yearly accounts
Operating plan

Your Luxembourg operating plan

Five questions. You get the steps in order, the permits, the VAT regime, payroll and the points to fix, and can send it to us as a brief.

A planning aid, not legal advice.

1. What will the company do?

2. Will you hire staff?

3. Selling to consumers in other EU countries?

4. Where will the company work from?

5. Who will run it day to day?

The rules

The rules in 2026

What an operating company in Luxembourg must have and do. Amounts are statutory, not our fees.

Business permitNeeded for commercial, craft and industrial activity. Integrity of the manager and main shareholders; a qualification for crafts. EUR 50 fee, decision within 3 months, silence means approval.
Fixed establishmentA real place of business suited to the activity, from which the company is managed. A domiciliation address alone is not enough.
ManagerOne named person holds the permit, runs the business day to day and must be reachable; tax or social debts disqualify.
VAT17% standard, 14%, 8% and 3%. Exempt below EUR 50,000 turnover if you choose; annual returns up to EUR 112,000, quarterly up to EUR 620,000, monthly above.
Corporate tax14% up to EUR 175,000, 16% above EUR 200,000, plus solidarity surcharge and municipal tax: about 23.87% in Luxembourg City.
StaffRegister with the CCSS as employer; employer contributions of roughly 12.5% to 15%. Social minimum wage EUR 2,771 a month (unskilled) from June 2026.
Non-EU hiresEU Blue Card from EUR 65,652 a year (2026).
CapitalEUR 12,000 for an S.à r.l., payable within 12 months since June 2026; SARL-S from EUR 1 for individual founders.
How it works

From first call to first invoice

1Week 1

Plan and documents

Activity, manager, office, capital. KYC on founders and the permit file.

2Weeks 1–3

Incorporation

Notary deed and RCS registration; the permit application runs in parallel.

3Up to 3 months

Permit and VAT

Business permit from the Ministry, VAT number, employer registration if you hire.

4From the permit

Trade

Bank account, invoicing, and we take over bookkeeping, VAT and payroll.

After registration

What we run for you every month and year

One team for the monthly and yearly side, so nothing is missed.

VAT returns

Annual, quarterly or monthly, filed on time through eCDF.

Payroll

Payslips, CCSS declarations, withholding tax.

Bookkeeping and accounts

Monthly books, yearly accounts filed at the RCS.

Tax returns

Corporate, municipal and net wealth tax returns.

Permit upkeep

Changes of manager, address or activity reported to the Ministry.

FAQ

Operating company questions

Can I open a company in Luxembourg without living there?+

Yes, the company can be owned from anywhere. But the business permit needs a manager who actually runs the business, and a place of business in Luxembourg. Many founders appoint a resident manager or move.

Is a domiciliation address enough for a trading company?+

No. A holding can use a domiciliation, but the business permit requires a fixed establishment from which the company is managed. A serviced office can work if the activity is really run from it.

How long does the business permit take?+

The Ministry decides within three months of a complete file; if it does not reply, the permit is deemed granted. The company can be incorporated meanwhile but cannot trade.

S.à r.l. or SARL-S?+

The SARL-S starts from EUR 1 but is only for individual founders, one per person, and needs the permit before registration. The S.à r.l. suits anything with partners, investors or growth plans.

Do I need to register for VAT from day one?+

Below EUR 50,000 turnover you can choose the franchise, but you then charge no VAT and recover none. Most B2B businesses register at once.