Expanding a foreign group to Luxembourg
Published on 10 October 2026 · Updated on 10 October 2026
In short
To expand your business to Luxembourg, a foreign company sets up either a subsidiary, a separate Luxembourg company, or a branch, which has no legal personality. A subsidiary limits the parent’s risk to its contribution; a branch binds it without limit. Either way, a parent established outside Luxembourg needs a business permit for a commercial activity.
Subsidiary or branch
| Subsidiary | Branch | |
|---|---|---|
| Legal personality | Yes, a Luxembourg company | No, part of the foreign company |
| Parent company liability | Limited to its contribution, unless guarantees are given | Unlimited and joint |
| Form and capital | SARL, SA or other, with the minimum capital of the form | No capital of its own |
| Management | Managers or directors appointed by the parent | A representative holding a commercial power of attorney |
| Tax | The subsidiary files its own returns | Profit attributed to the head office, to be analysed under the tax treaty |
Parent company documents usually requested
- Recent extract from the commercial register of the home country.
- Up-to-date articles of association of the parent company.
- Decision of the competent body creating the subsidiary or branch and appointing its managers.
- Group chart down to the individual beneficial owners.
- Identity documents, criminal records and non-bankruptcy declaration of the Luxembourg manager.
- Apostille or translation depending on the country and the language of the document.
The steps of the expansion
- 1
Choose the vehicle
Subsidiary or branch depending on risk, image with customers and the group’s tax analysis.
Group management and tax adviser - 2
Appoint the manager and the premises
A manager who actually runs the entity and fixed premises in Luxembourg.
Group, landlord - 3
Business permit
Application on MyGuichet.lu; chancery fee of EUR 50.
Ministry of the Economy - 4
Incorporation or registration
Subsidiary: articles, capital, notarial deed, RCS and RBE. Branch: registration with the RCS.
Lawyer, notary, LBR - 5
Bank, VAT, CCSS
Bank account, VAT number, employer affiliation from the first hire.
Bank, AED, CCSS
Obligations after opening
A subsidiary keeps Luxembourg accounts and files its annual accounts with the RCS. A branch of a foreign company also reports financial data on its parent company to the direct tax administration each year. Bookkeeping is entrusted to an independent licensed accountant.
Next step
Prepare your expansion
We list the documents required for your home country and coordinate lawyer, notary and bank.
Frequently asked questions
Subsidiary or branch: which is faster?
A branch involves fewer incorporation formalities: no articles of its own and no capital. But the business permit, the premises and the bank account take the same time in both cases. The choice is made first on liability and tax.
Does a branch need a business permit?
According to Guichet.lu, a parent company established in another Member State or outside the European Union applies for a permit for its branch. If the parent is a Luxembourg company, a simple notification to the Ministry of the Economy is enough.
Are documents in English accepted?
English is commonly used with banks and law firms. For the registers and the notary, check case by case: a translation into French or German may be requested.
Can a branch be turned into a subsidiary later?
Yes, by creating a subsidiary to which the activity is contributed or sold. The operation has tax and contractual consequences that must be analysed with the group’s tax adviser.