How to open a branch of a foreign company in Luxembourg
Published on 10 October 2026 · Updated on 10 October 2026
In short
To open a branch in Luxembourg, a foreign company obtains the business permit its activity requires, appoints a manager holding a commercial power of attorney from head office, then registers the branch with the RCS. The branch has no legal personality and no capital of its own: the parent company answers for its commitments.
Definition
A branch is a Luxembourg establishment of a foreign company, with a degree of management autonomy but no separate legal personality: it is part of the parent company, which remains the holder of its rights and its debts.
The branch at a glance
- Legal personality
- None
- Own capital
- Not required
- Liability
- That of the parent company, without limit
- RCS
- Registration mandatory
Steps to open a branch
- 1
Qualify the activity
We identify the business permit and the qualifications to be evidenced.
businessregistration.lu - 2
Head office decision
The competent body of the parent company decides on the opening and appoints the branch manager by commercial power of attorney.
Parent company - 3
Foreign documents
Articles and register extract of the parent company, legalised or apostilled and translated if necessary.
Parent company - 4
Business permit
File submitted to the Ministry of the Economy with the address of the establishment in Luxembourg.
Ministry of the Economy - 5
RCS registration
Filing of the branch file and publication in the RESA, UBO declaration where applicable.
LBR - 6
VAT and CCSS
VAT registration, employer affiliation if employees are hired.
AED and CCSS
What a branch involves
The branch directly binds the parent company, without limit of liability. According to Guichet.lu, a branch of a foreign company sends financial data on its parent company to the Direct Tax Administration each year. Permanent establishment taxation is outside our remit: it should be validated with a tax adviser and, for bookkeeping, with an independent licensed accountant (comptable autorisé).
Branch or subsidiary: the essentials
| Branch | Subsidiary | |
|---|---|---|
| Legal personality | No, part of the parent company | Yes, a Luxembourg company |
| Capital | No own capital required | Capital of the chosen form |
| Parent’s liability | Total | Limited to capital, unless guarantees are given |
| Formalities | Lighter at opening | Full incorporation |
Going further
The choice between the two structures is detailed in the comparison branch or subsidiary in Luxembourg. If you opt for a separate company, see setting up a subsidiary in Luxembourg. Documents issued abroad follow the rules set out in apostille and foreign documents.
Next step
Open your branch
We qualify the activity, prepare the file and coordinate the filings. Written quote.
Frequently asked questions
Does a branch need a business permit?
Yes, where the parent company is established in another State, in the EU or not, and the activity falls under the establishment law. If the parent company is already established in Luxembourg, opening a branch is simply notified to the Ministry of the Economy.
Is capital needed to open a branch?
No. The branch has no capital of its own. An endowment may be allocated by the parent company, but it is not required and may be nil. The branch’s creditors turn directly to the parent company, which answers for its commitments with all of its assets.
Who runs the branch?
A manager appointed by the parent company, who holds a commercial power of attorney from head office. If the activity requires a business permit, the manager must also meet the good standing and, where applicable, qualification conditions.
Is a notary needed to open a branch?
Opening a branch does not involve a notarial deed of incorporation, since no new company is created. The decisions and documents of the parent company must, however, be provided in an evidentiary form.
Can a branch employ staff?
Yes. The parent company then registers as an employer with the Joint Social Security Centre (CCSS) for its Luxembourg activity and declares the branch’s employees. Employment contracts are governed by Luxembourg law where the work is performed in Luxembourg.