Luxembourg: Operating a Business

Setting Up a Company

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Private Limited Company EUA 12,500 totaly subscribed	Minimum 2 partners Maximum 40 partners. NB: 1 member for a sole proprietorship. Liability is limited to the amount contributed.
Public Limited Company EUR 31,000 with 1/4 released at the creation.	Minimum 2 shareholders. Liability is limited to the amount contributed.
General Partnership. No minimum capital.	Minimum 2 partners. Partners' liability is joint and several on obligations and debts of the company.
Limited Partnership. No minimum capital.	Minimum 2 partners. Two types of partners: active partners and sleeping partners. Active partners' liability is joint and several. Liability of sleeping partners is limited to the amount contributed.
Cooperative Company No minimum capital	Minimum 7 partners Partners' liability is joint and several or divided, unlimited or limited to amount contributed depending on the status.

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Luxembourg.
Trade Register, in French.

Legal Weekly Duration: The Law allows for a duration of 40 hours per week and 8 hours per day. The daily working time may not exceed 10 hours.
Retirement Age: 65
Working Contracts: Employment contracts are regulated by law. Collective agreements and individual negotiations complement it.
The terms of the employment contracts are very rigid.
A work contract is either signed for an indeterminate period (Contrat à Durée Indéterminée/ CDI), which it is most often the case, or for a fixed term (Contrat à Durée Déterminée/ CDD). The CDD cannot last more than 24 months, including renewals. It can only be renewed twice and only if the initial contract includes a renewal clause. The Law strictly defines the framework of using a fixed-term contract. It is contracted for the accomplishment of precise and temporary tasks in a company.

Minimum Wage: The Law fixes a Minimal Social Salary (SSM) applicable to all employees. The rate depends on the age and skills of the workes: it is 100% for unskilled workers aged 18+, 75% for employees aged between 15 and 16 years and 80% for employees aged 17. Skilled workers of more than 18 years of age profit from a 120% rate. This amounted 1,503 EUR (USD1,968 ) for unskilled workers and 1,804 EUR (USD2,363) for skilled workers.
Social contributions: Social Security Contributions Paid By Employers: 12% for an employee and 14.86% for a worker.
Social Security Contributions Paid By Employees:
11,80% pour un employé et 14,05 % pour un ouvrier. 11.80% for an employee and 14.05 % for a worker.

Social Dialogue and Involvement of Social Partners: Luxembourg enjoys a rather calm social climate. The majority of industrial workers are associated with the dominant political party. Trade unions are active in several fields but they mainly defende union interests in collective negotiations during meetings with the employer, public and social authorities. They also provide free judicial aid.
Unions: LCGB
OGBL
Unionization Rate: Around 50% in 2007.
Labor Regulation Bodies: Ministry of Labour
Federation des Industriels Luxembourgeois (FEDIL)

Any Comments About This Content? Report It to Us.