Establish a Branch in Luxembourg

Opening a branch in Luxembourg is a simple process if certain steps for company formation are followed and the documents are properly submitted. Our company registration representatives in Luxembourg can offer in-depth support for opening a branch in Luxembourg in 2026.

What are the characteristics of a Luxembourg branch office?

1. The branch office must disclose any necessary financial information about the parent company by filing the parent's annual accounts with the Trade and Companies Register (RCS), even though some of the information might be confidential in the country of origin.
2. The accounts of the parent company can be audited by the Luxembourg authorities anytime they request to do so.
3. The advantages of opening a branch in Luxembourg include lower incorporation costs and quicker formation time than for other types of companies.
4. The branch will also have to observe lighter reporting and auditing requirements while doing business in Luxembourg.

IMPORTANT! Please note that in the case of foreign companies, documents issued in their home country must first be translated and notarized before being filed with the Luxembourg authorities.

How does the Luxembourg legislation define the branch office?

From a legal point of view, a branch is considered a secondary enterprise that has a permanent and stable commercial establishment or place of business in Luxembourg.

Additionally:

• it must have a physical location that is separated from the parent company’s headquarters;
• it should also have its own customer/ client base, which is invoiced separately from those of the parent company.

What companies can set up branches in Luxembourg?

Branches can be created by:

• domestic companies;
• EU-based entities;
• non-EU enterprises.

Must a branch office have a Luxembourg manager?

Yes, a local manager or representative must be appointed (Luxembourg residence is not legally required, but the manager named in the business permit must actually run the business on site) to administer a branch office.

Here is also an infographic on this topic below:

What are the steps to set up a branch office in Luxembourg?

Here is a brief outline of these steps:

• business name reservation: even if the name must be the same as the parent company’s, the reservation step must be completed;
• documents drafting and filing: the parent company’s statutory papers and the ones for the branch must be submitted to the relevant authority;
• tax registration: the branch must also be registered for taxation;
• licensing: a branch office must apply for the relevant business permit, in accordance with its operations.

What are the documents required to open a branch in Luxembourg?

The following documents must be submitted at the same time as the registration application at the Trade and Companies Register (the business permit is requested from the Ministry of the Economy):

1. The articles of association of the foreign company, which act as proof that the foreign company exists;
2. Information about the authority that released the certificate of registration in the country of origin;
3. The minute of the meeting where the decision to open a branch was taken;
4. The decision to appoint a branch representative;
5. The identification data for the representatives, the branch’s local address, and others.

What is the registration authority for a branch office in Luxembourg?

The registration of a branch in Luxembourg must be completed with:

• the Ministry of Economy, if the parent company is a Luxembourg entity, by submitting a notification;
• with the Commercial Register if the parent company is an EU/non-EU company (the business permit itself is issued by the Ministry of the Economy).

How long does it take to incorporate a branch office in Luxembourg?

The procedure takes between 2 and 4 weeks. The latter timeframe also includes the business permit application with the Ministry of the Economy.

We invite you to watch a video about opening a branch, helped by our company formation specialists in Luxembourg:

How much does it cost to register a branch in Luxembourg?

Here are the costs to consider when setting up a branch in Luxembourg in 2026:

• the documents drafting fees, which may include notarization or translation and notarization fees, and which depend on the notary service you use;
• the registration fee with the Commercial Register starts at EUR 75; however, the cost of the business permit must be computed separately, and is varies based on the activity of the branch.

You can rely on our agents for updated information on the entire costs for opening a branch office in 2026.

How are branches taxed in Luxembourg?

Branches are subject to a special tax regime in Luxembourg. Given their status, which implies that branches are one and the same legal entity with the parent company, the former will be taxed on the profits made in Luxembourg only.  

The income from a non-resident company’s branch in Luxembourg is subject to corporate income tax (16% plus the 7% solidarity surcharge) and municipal business tax, about 23.87% combined in Luxembourg City. Also, generally speaking, the branch is only subject to the municipal business tax if it conducts business within Luxembourg.

If you would like to do business in Luxembourg, you may contact our experts in company formation in Luxembourg and find out how you can open a branch in 2026. Our company registration representatives in Luxembourg can offer more details.