Accounting and tax obligations for companies in Luxembourg
What are the mandatory steps when setting up your company in Luxembourg?
When a company is established in Luxembourg, many entrepreneurs assume that administrative obligations only start once the business is operational.
In reality, accounting and tax responsibilities begin from day one, and careful planning of these obligations can help avoid penalties, delays, and unpleasant surprises.
1. Essential registrations
1.1 VAT registration
Depending on the nature of your business, your company must be registered:
✅ either with a full VAT number,
✅ or under the VAT exemption scheme,
✅ or as an occasional taxable person.
The choice of VAT regime determines your reporting obligations and your ability to recover VAT.
1.2. Registration with social security system
When a director is employed as a salaried worker, or when the company hires staff, registration with the CSSF must be completed immediately.
1.3. Filing with the AED
Certain activities must also be registered with the Administration of Registration, Domains, and VAT (AED).
For example : real estate rental, specific transactions subject to registration duties, …
2. Bookkeeping
Many people believe that bookkeeping can wait a few months. This is a mistake.
In fact, the company must record transactions regularly from the moment it is incorporated, including:
- paid-up capital
- notary fees
- shareholder current account contributions
- initial expenses
- any invoices issued
Maintaining a well-structured accounting system from the start helps avoid costly corrections at the end of the year.
3. First tax returns
3.1. Corporate Income Tax (CIT) filing
This return is mandatory for all companies resident in Luxembourg, even if they have no business activity.
3.2. Commercial Business Tax (CBT) filing
This return is often required for companies conducting commercial activities.
3.3. VAT return
Depending on the applicable VAT regime, you will need to submit VAT returns:
✅ monthly
✅ quarterly
✅ annually
4. Filing and publication obligations
4.1. Financial statements
Annual accounts must be approved within six months of the end of the financial year and filed with the Trade and Companies Register (RCS) within one month of their approval (usually by July 31 at the latest).
4.2. BCL filing
In certain very specific cases, companies must also report their financial data to the Central Bank of Luxembourg (BCL).
5. How Atlas Fiduciaire can support you
From the outset, we take care of all necessary obligations:
- VAT and social security registrations
- Establishing your accounting system
- Submitting tax and administrative filings
- Managing the first year, which is often the most challenging
Our aim is to let you concentrate on your core business while we ensure that all your accounting and tax obligations are fully compliant with Luxembourg law.
➡️ Would you like to learn more about the obligations of companies in Luxembourg ?
Let’s talk about the steps involved in setting up a company in Luxembourg.
At Atlas Fiduciaire, we put our expertise at the service of your vision.