Cross-border workers from France: forming a Luxembourg company
Published on 10 October 2026 · Updated on 10 October 2026
In short
A French resident can form a Luxembourg company and be its shareholder and manager without moving. They provide extract no. 3 of their criminal record and a notarised no-bankruptcy statement, have a fixed establishment in Luxembourg if the activity needs a permit, and ask a tax adviser to validate the company’s place of management and their own situation.
Five situations not to confuse
| Situation | What it implies | To check |
|---|---|---|
| Holding shares | Being a shareholder does not in itself create any obligation to be present in Luxembourg. | RBE declaration if you hold more than 25% or control the company. |
| Managing the company | The manager binds the company; for the permit, they must run it effectively. | Where decisions are actually taken. |
| Working in Luxembourg | Employee or paid manager: the place of work in principle determines social security. | An activity kept in France. |
| Physical presence | A licensed activity requires a fixed establishment, not just an address. | An office, not domiciliation alone. |
| Tax residence | You generally remain a French tax resident; the company is Luxembourgish. | Working from France, remuneration, dividends. |
This table describes principles. It does not replace a tax analysis of your situation.
The path for a French resident
- 1
Define your role
Sole shareholder, manager, or employee of your own company: this choice determines social security and taxation.
You and your tax adviser - 2
Gather the French documents
ID, proof of address, extract no. 3 of the criminal record (online request to the Casier judiciaire national) covering your countries of residence over the last 10 years.
You - 3
Sign the no-bankruptcy statement
Mandatory for a director who does not live in Luxembourg, before a notary, from €200 excl. VAT.
Notary - 4
Find the premises
An office in Luxembourg if the activity requires a business permit. We introduce you to a landlord.
Landlord - 5
Permit, incorporation, registers
Permit application on MyGuichet.lu, articles, capital, RCS registration, RBE declaration within one month.
Ministry of the Economy, lawyer, bank, LBR - 6
Social security
Affiliation in Luxembourg and, as a non-resident, registration with your French health insurance fund using form S1.
CCSS, CPAM
What is specific to French residents
- Accounts abroad: a French tax resident declares each year the accounts opened abroad (form 3916), including certain accounts over which they hold a power of attorney. An exception covers powers of attorney used solely for the benefit of a non-resident: have the case of your company’s account settled.
- Remote work: for employees, the amendment to the tax treaty signed in November 2022 raises to 34 days a year the tolerance threshold for working outside Luxembourg. This threshold does not, on its own, settle the situation of a manager.
- Language: articles, notarial deeds and dealings with the administration can be in French.
What we do not do
We do not give personal tax advice. Manager remuneration, dividends, place of effective management and the risk of a permanent establishment in France should be validated with a tax adviser before incorporation.
Next step
Set up your company from France
SARL-S from €1,499 excl. VAT, or €2,999 excl. VAT in End-to-end with bank, permit, VAT and CCSS. Third-party fees extra.
Frequently asked questions
Can I keep my salaried job in Luxembourg and set up my company?
Yes, subject to your employment contract, which may contain an exclusivity or non-compete clause. If you become a manager holding more than 25% of the shares of a SARL or SARL-S, you fall under the Luxembourg self-employed scheme, in addition to your employment.
What if I keep a self-employed activity in France?
European coordination rules (Regulation (EC) No 883/2004) designate a single country of insurance. A self-employed person active in several states falls under their country of residence if they carry out at least 25% of their activity there. Have this checked before starting.
Do I have to travel to Luxembourg?
Not necessarily for incorporation: a notarial proxy is possible. For a licensed activity, however, effective management and a fixed establishment require a real presence in Luxembourg.
Is a domiciliation enough?
It provides a registered office address, but does not count as physical premises for the business permit. For a commercial or craft activity, you need an office in Luxembourg.
Will my company be taxed in Luxembourg?
A Luxembourg company is in principle taxed in Luxembourg. If it is in fact managed from France, the French administration may challenge this link. This is the point to have validated first by a tax adviser.