It is possible to create a company in Luxembourg without living there, but under specific conditions. The personal residence of the director in Luxembourg is not a legal requirement to incorporate a company. However, this does not mean that everything can be done remotely without constraints.
What is possible without residing in Luxembourg:
- Create a SOPARFI, SPF, or any holding/asset-management company: these structures do not require a business license and can be administered through an approved domiciliation agent.
- Be a sole or majority shareholder of a SARL or SA without residing in Luxembourg: the residence of shareholders is not regulated by Luxembourg law.
- Appoint a resident director or delegate management to a licensed local service provider, who will ensure effective management on-site.
What remains mandatory, even from abroad:
- Obtain a business authorization (autorisation d’établissement) if the activity is commercial, artisanal, or liberal. This authorization is issued to a qualified natural person, who may be a resident representative.
- Ensure effective management in Luxembourg: at least one director must be physically present and active in Luxembourg, whether it is the founder or a delegated director.
- Have a real registered office and adequate infrastructure, in line with substance requirements.
- Register with the Trade and Companies Register (RCS) and declare beneficial owners in the RBE, regardless of the founder’s nationality or residence.
Key considerations for non-residents:
- The tax residence of the company depends on the place of effective management, not on the founder’s nationality. A director managing everything from Belgium or France risks triggering a tax reclassification in their country of residence.
- Some Luxembourg banks apply stricter due diligence requirements for non-resident shareholders when opening accounts.
- Using a trusted local director is strongly recommended, along with a clear management agreement and regular board minutes.
In practice, many Belgian, French, or German entrepreneurs create and own companies in Luxembourg without living there. This is perfectly legal, provided that real substance exists and is properly documented.
https://guichet.public.lu/fr/entreprises/creation-developpement/autorisation-
https://www.cc.lu/solutions/je-veux-creer-mon-entreprise
https://www.lbr.lu/mjrcs-web-front/port-search-view?search=
https://www.lexgo.be/fr/actualites-et-articles/12560-l-utilisation-de-la-soparfi-par-des-
residents-belges-et-la-montee-en-puissance-de-la-substance-economique