Open a Sole Trader in Luxembourg

Opening a sole proprietorship in Luxembourg starts with the business permit (autorisation d'établissement) from the Ministry of the Economy, followed by registration with the Trade and Companies Register (RCS). This is a simple process that can be overseen by our local agents. This article presents information on how to incorporate this structure and what the main formalities are. With the help of our specialists in setting up a company Luxembourg, you can start your activities quickly, benefiting from complete support in registration.

How to set up a sole proprietorship in Luxembourg

A sole proprietorship in Luxembourg can be registered online, on the official Trade and Companies Register platform, where we recommend the help and assistance of our specialists. Here is a brief overview of what you need to do to open a sole proprietorship in Luxembourg:

natural persons can register as sole traders in Luxembourg. The first step is filing a standard form with personal information and details about the activities;
the chosen business name must be unique. Verification in this sense is done with the Luxembourg Business Register;
another important step in setting up a sole trader in Luxembourg is registering with the Joint Social Security Centre (CCSS), but also with the tax authorities;
VAT registration is required for any taxable activity; sole traders with annual turnover up to EUR 50,000 can use the small-business franchise and do not charge VAT;
a bank account in Luxembourg is required when setting up a sole proprietorship;
depending on the activities of a sole proprietorship in Luxembourg, a business license will be required.

These are some of the formalities for opening a sole trader in Luxembourg. We emphasize here that entrepreneurs from non-EU countries must consider visa and residency permits before opening a business in Luxembourg in this country. However, regardless of the country of origin, we invite you to talk to our agents in company formation in Luxembourg and discover more about how to open this type of business.

Documents of a sole trader in Luxembourg

A sole trader in Luxembourg (a natural person, so no articles of association or incorporation deed are needed) is registered with documents such as:

Articles of Association,
Incorporation Deed,
bank certificate,
business license permit,
residence permit in case of non-EU entrepreneurs.

A sole proprietorship in Luxembourg can operate in the innovation and R&D sectors, benefiting from financial support through various governmental programs. On the other hand, the sole trader in Luxembourg is solely responsible for the debts and liabilities of the firm. You can find out more about how to open a company in Luxembourg and, in particular, a sole proprietorship, from our local consultants. Our experts can also put you in touch with our team of accountants in Luxembourg to benefit from complete service packages.

About the Luxembourg economy in a few lines

Discover some information about the Luxembourg economy to be prepared before opening a business in this country:

GDP grew by about 0.6% in 2025 (STATEC first estimate) and is forecast at 1.7% in 2026.
According to the same estimates, inflation was about 2.2% in 2025 and is expected at around 1.8% in 2026.
The unemployment rate stood at 6.5% in August 2026.

We invite you to learn more about how to set up a company in Luxembourg, including a sole trader. You can also benefit from payroll in Luxembourg, as part of the accounting services we offer to companies here. Please contact us and ask for a free case evaluation.