# Registering a Company in Luxembourg Without Living There – What’s Actually Possible? [](https://enterslice.com/lu/company-formation-luxembourg) Luxembourg has built a solid reputation as one of Europe’s most business-friendly jurisdictions. Its strategic location, strong financial sector, and favorable legal frameworks make it an attractive choice for international entrepreneurs and companies looking to expand. But here's a question that many aspiring business owners ask: Can you go through company registration in Luxembourg without actually living there? The short answer is yes — but there are some important rules, responsibilities, and limitations you should understand before moving forward. This blog aims to clarify the facts, bust common myths, and guide non-residents through the real process of [**Luxembourg company formation**](https://enterslice.com/lu/company-formation-luxembourg) from abroad. - - - ### **Why Luxembourg?** Before diving into the logistics of remote incorporation, let’s briefly touch on why Luxembourg is a sought-after location for business: * Stable and investor-friendly legal and tax framework * Central location in the heart of Europe * Highly developed banking and financial services industry * Access to the EU single market * Multilingual, skilled workforce * Competitive corporate tax schemes and over 80 double tax treaties All of these make company incorporation in Luxembourg attractive not only for startups but also for holding companies, investment funds, and international trading firms. - - - ### **Can Non-Residents Register a Company in Luxembourg?** Yes, non-residents can incorporate and own a company in Luxembourg, even without setting foot in the country. There are no nationality or residency requirements for shareholders. However, there are rules and considerations concerning management, substance, taxation, and regulatory compliance that you cannot ignore. Let’s break this down step-by-step. - - - ### **Steps to Company Registration in Luxembourg for Non-Residents** #### **1\. Choose the Right Company Type** The most commonly used business entities in Luxembourg include: * **Société à responsabilité limitée (SARL)** – Private Limited Liability Company * **Société Anonyme (SA)** – Public Limited Company * **Société par Actions Simplifiée (SAS)** – Simplified Joint-Stock Company For most foreign entrepreneurs and SMEs, the **SARL** is the preferred structure due to its lower capital requirement (EUR 12,000) and simplified setup. #### **2\. Prepare Legal Documents Remotely** You don’t need to be physically present in Luxembourg to prepare or submit incorporation documents. However, you’ll need to: * Draft and notarize the Articles of Association * Appoint directors and shareholders * Open a capital deposit account in a Luxembourg bank * Obtain a business permit (autorisation d’établissement) * Register with the Luxembourg Trade and Companies Register (RCSL) These steps can be completed via a local legal representative or business service provider who acts on your behalf. #### **3\. Appoint a Local Director or Manager (Optional, But Recommended)** Luxembourg does not legally require directors to be residents. However, from a tax and substance perspective, it’s strongly recommended to appoint at least one Luxembourg-resident director or manager, especially if you: * Want to access Luxembourg's double taxation treaties * Aim to demonstrate that the company is effectively managed and controlled from Luxembourg * Plan to avoid corporate tax issues in your home country This is where the concept of "effective management" becomes critical. **Also Read: Understanding Regulations for [Foreign Business Setup in Cambodia](https://enterslice.com/kh/company-formation-cambodia)** - - - ### **What Is "Effective Management" and Why Does It Matter?** In the eyes of tax authorities (both in Luxembourg and abroad), a company must be effectively managed from the jurisdiction where it is registered. This means: * Board meetings should be held in Luxembourg * Key decisions must be made by Luxembourg-based directors * The company should have a physical address, ideally with staff or representatives If you register a company in Luxembourg but manage everything remotely from your home country, foreign tax authorities may view the company as tax resident elsewhere, putting you at risk of double taxation or penalties. - - - ### **Is Substance Required in Luxembourg for Non-Residents?** Yes, and this is one of the most misunderstood aspects of **Luxembourg company formation**. While you can legally incorporate from abroad, to maintain the company’s **Luxembourg tax residency**, it must show **economic substance**, which includes: * A physical office address in Luxembourg * Local directors or managers * Administrative support or accounting presence * Local bank account * Records of meetings held in Luxembourg Failing to meet substance requirements may not prevent you from registering a company, but it can have consequences later when dealing with banks, tax authorities, or regulators. **Also Read: How to [Apply for an IFZA Free Zone License](https://enterslice.com/ae/ifza-company-setup)** - - - ### **Opening a Bank Account in Luxembourg Without Living There** This can be one of the more difficult aspects for non-residents. Luxembourg banks are cautious due to AML (Anti-Money Laundering) regulations and require: * Full KYC (Know Your Customer) checks * Proof of business activity and company purpose * Compliance documentation Many banks will ask for an in-person meeting with at least one director or shareholder, though this can sometimes be waived if a trusted intermediary is involved. - - - ### **Do You Need a Business Permit as a Non-Resident?** Yes. Certain types of businesses require an **autorisation d’établissement**, issued by the Ministry of the Economy. This includes commercial, industrial, and craft activities. To obtain this permit: * A manager must have relevant qualifications or experience * The manager must reside in Luxembourg or the EU (in most cases) If you are not an EU resident, you'll likely need to appoint a **locally based qualified manager** to meet this condition. - - - ### **Can You Handle the Entire Process Remotely?** Technically, yes. By engaging a licensed **company formation agent, notary, or legal representative** in Luxembourg, you can: * Draft and sign documents remotely (often with notarization in your home country) * Appoint directors and open a bank account via proxy * Secure a registered office address * Handle all official filings However, some steps (like bank account setup or business permit verification) may still require **limited travel** or **legal presence** depending on the situation. - - - ### **Costs of Luxembourg Company Formation for Non-Residents** Here’s a rough breakdown of common expenses: * Company registration: €1,500 – €3,000 * Legal/notary fees: €1,000 – €2,000 * Registered office: €500 – €1,200/year * Local director service (if required): €3,000 – €6,000/year * Accounting and compliance: €1,500+/year * Business permit application (if applicable): €500+ While **Luxembourg company incorporation** isn’t the cheapest option in Europe, it offers strong legal and reputational advantages, especially for holding companies and cross-border investors. - - - ### **Who Should Consider Registering a Luxembourg Company Without Living There?** * International consultants or freelancers serving EU clients * E-commerce or SaaS founders with a global customer base * Investment or holding companies managing assets * Non-EU citizens seeking legal EU business presence * Companies seeking a tax-efficient structure with substance - - - ### **Conclusion** So, can you register a company in Luxembourg without living there? Yes, absolutely. But doing it the right way means understanding local rules around management, substance, and tax residency. It also means working with a qualified local service provider who can act as your legal and operational representative. Luxembourg is open to global entrepreneurs—but it expects professionalism and transparency. If you’re ready to operate seriously and meet local requirements, **Luxembourg company formation** is a powerful tool for international business success. - - - ### **FAQs** #### **1\. Can I own 100% of a Luxembourg company as a non-resident?** Yes, Luxembourg allows full foreign ownership of companies. There are no nationality or residency restrictions for shareholders. #### **2\. Do I need a local director for a Luxembourg company?** Legally, it's not required, but for tax residency and practical management purposes, it's highly recommended to appoint at least one Luxembourg-resident director. #### **3\. Can I register a Luxembourg company online from my home country?** Yes, you can handle the incorporation process remotely through a local notary or formation agent. However, some elements (like bank account opening) may require additional documentation or presence.