Branches - Luxembourg

Updated 01/2010

Legal requirements

Types of secondary establishment

There are various alternatives if you decide to develop your business. You can choose between setting up a branch or a subsidiary, depending on your aims and the desired level of independence regarding the parent company. There is a specific legal and tax status for each option.

With no legal personality

A branch is a secondary and dependent commercial facility, and is set up in a location where there is a legal representative of the company. A branch must meet several requirements before it can operate. Branches offer tax and legal advantages which differ from those of a subsidiary.

Tax implications of doing business abroad from a foreign branch or subsidiary

You may also use the services of an independent agent who carries out legal and commercial transactions on your behalf. The agent's business generally involves selling or leasing the products or services of his clients. In some cases, it may also involve purchasing goods on behalf of the clients.

Tax implications of doing business with other countries from Luxembourg

Legally independent

A subsidiary is a company with local nationality, legal independence of the parent company and where the parent company has majority control. Subsidiaries offer numerous tax and legal advantages.

Many of the requirements and procedures for opening a secondary establishment are the same as for starting up a business.

Start-ups — Luxembourg

Administrative procedures

Registration

Branch

While a branch is not a separate legal entity distinct from the principal company, it must still carry out the same registering, submitting and notifying formalities as companies in Luxembourg. Branch managers must send certain documents to the Trade and Companies Register and also publish them in the Mémorial C publication.

address and activities of the branch;
registration of the company in the Trade Register of a Member State;
identity of the people appointed to represent the company when dealing with third parties and courts;
accounting documents audited according to the law of the company's Member State.
Forms: "Paper" submissions - Trade and Companies Register
Forms: "Electronic" submissions - Trade and Companies Register

Subsidiary

A subsidiary is an entirely separate company, incorporated according to the Law of Commercial Companies. It is thus subject to the same procedures as a company, namely:

the incorporation permit issued by the Ministry of Small Firms and Traders;
registration in the Trade and Companies Register;
request for a VAT number from the Luxembourg Registry;
initial declaration to the Direct Taxation Authority;
initial declaration to the Joint Social Security Centre;
registration with professional chambers.
Forms - Guichet entreprises
Forms: "Paper" submissions - Trade and Companies Register
Forms: "Electronic" submissions - Trade and Companies Register
eVAT online
Forms - Direct Tax Administration
Forms - Joint Social Security Centre
professional chambers

Many of the requirements and procedures for opening a secondary establishment are the same as for starting up a business.

Setting up a new business - Luxembourg

Check also the legislation on this topic in:

Branches - Luxembourg

Legal requirements

Types of secondary establishment

With no legal personality

Legally independent

Administrative procedures

Registration

Branch

Subsidiary

Still need help?

Enterprise Europe Network - Contact points

Further help

Branches - Luxembourg

Legal requirements

Types of secondary establishment

With no legal personality

Legally independent

Administrative procedures

Registration

Branch

Subsidiary

Legal texts

Still need help?

Enterprise Europe Network - Contact points

Further help