Drafting the Corporate Purpose of a Luxembourg Company
Published on 10 October 2026 · Updated on 10 October 2026
In short
How to draft a corporate purpose in Luxembourg? The corporate purpose is a mandatory clause of the articles of association that describes the activities the company may carry out. It must be precise enough to match the business permit and be understood by the bank, yet broad enough to cover foreseeable growth. No universal template is legally safe.
Definition
The corporate purpose is the clause of the articles of association that defines the scope of the company’s activities. It sets what the managers may commit the company to and serves as a reference for the authorities, banks and partners.
What the corporate purpose affects
- Articles of association
- Mandatory clause
- Business permit
- Consistency with the activities requested
- Bank
- How the activity is read in the KYC review
- Amendment
- Change of the articles
A four-step method
- 1
Describe the real activity
What the company will do from day one, in its own words: services, products, clients, locations.
You - 2
Qualify the activity
Identify the matching permit: commercial, craft, liberal profession, or sector licence.
Us - 3
Add foreseeable growth
Realistic related activities over two or three years, without listing everything imaginable.
You, with the partner lawyer - 4
Have the clause drafted
Legal drafting suited to the company type and the activity, then a review against the permit application.
Partner lawyer
Purpose too broad or purpose that fits
| Purpose too broad | Purpose that fits | |
|---|---|---|
| How the ministry reads it | Activities unrelated to the manager’s qualification | Clear match with the permit requested |
| How the bank reads it | Risk profile hard to establish, extra questions | Identifiable activity, consistent expected flows |
| Regulated activities | Risk of unintentionally targeting an activity that requires a licence | Regulated activities excluded or covered by the licence |
| Change over time | Apparent flexibility, but the permit remains limited to the activities granted | Amend the articles and the permit when the activity changes |
Why we do not publish a “ready to copy” template
A corporate purpose copied from another company may target a regulated activity without you knowing, contradict the business permit application or trigger questions from the bank. A template is not a legal guarantee: the clause is drafted for your activity, your company type and your permit. The examples below illustrate a method, not a clause to reuse.
Two illustrations of the method
IT consultant. The purpose describes IT consulting and development services, related training and ancillary activities. It avoids wording such as “any commercial activity” or “wealth management”, which have no link with the activity and may raise questions about a financial activity.
Electrician. The purpose covers electrical installation, the craft activity matching the manager’s qualification, and where relevant the sale of related equipment, which falls under a separate commercial permit. The purpose follows the structure of the permits requested.
To describe the activity in the permit file, use the business activity description sheet. To find out which permit matches your activity, use the business permit finder. To change activity later, see changing the corporate purpose.
Next step
A corporate purpose drafted for your activity
We qualify the activity and coordinate the drafting of the articles by a partner lawyer.
Frequently asked questions
Is a very broad corporate purpose safer?
Not necessarily. The business permit only covers the activities granted, whatever the purpose says. A very broad purpose may also target a regulated activity by mistake and slow down the opening of the bank account.
Does the Ministry of the Economy read the corporate purpose?
The ministry examines the activities requested and the manager’s qualification. In practice, an inconsistency between the articles and the application can lead to requests for additional documents; we align the two before filing.
Can the corporate purpose be changed later?
Yes, by amending the articles, before a notary for a SARL or an SA. If the new activity requires another permit, the business permit must also be amended.
Must regulated CSSF activities be mentioned?
Only if the company holds or applies for the matching licence. A company without a licence should avoid targeting them, and the lawyer can include a clause excluding activities that require a licence.
Must the corporate purpose be in French?
It follows the language of the articles: French or German for a notarial deed, with English accepted if accompanied by a French or German version.