A company choosing to establish itself in Luxembourg to offer logistics services or organize the distribution of its products from Luxembourg, must have a commercial entity in Luxembourg. For that, a certain number of mandatory rules must be followed.
Additional steps are necessary if the entity wishes to offer or to use customs-bonded storage, customs clearance or tax representation services.
The steps indicated below are a summary of the required steps for a company that wishes to become established in Luxembourg.
Step 1. Business permit request
Before starting its business activity, a company established in Luxembourg needs a business permit delivered by the General Directorate for SMEs and Entrepreneurship at the Ministry of the Economy. This permit is delivered in the name of the executive manager of the company. Residents of third countries must request an authorization to stay at the same time that they request a business permit prior to their entry in the territory.
Step 2. Registration with the Trade and Companies Register
Regardless of the legal form chosen, companies established in Luxembourg must be registered with the Trade and Companies Register.
Step 3. Registration with Social Security
The holder of the business permit must register with the Joint Social Security Center (CCSS) in Luxembourg, either as an independent or as an employee.
The use of salaried employees also requires filing an application to operate with the CCSS.
Step 4. Registration with fiscal and customs authorities
Companies established in Luxembourg must register their business with the Luxembourg Inland Revenue (ACD).
They must moreover be compliant with the VAT prerequisites and as needed, the excise prerequisites and customs prerequisites.
Step 5. Authorization for storage services
In addition to these formalities, companies wishing to offer storage services (operating a warehouse for example), need an operating permit for classified establishment (Commodo/Incommodo).