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flag Luxembourg Luxembourg: Operating a Business

In this page: Setting Up a Company | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Private Limited Company (S.A.R.L.)
Number of partners: Minimum 1 partners Maximum 40 partners. NB: 1 member for a sole proprietorship.
Capital (max/min): EUA 12,394.68, totally subscribed.
Shareholders and liability: Liability is limited to the amount contributed.
Public Limited Company (S.A.)
Number of partners: 1 shareholder or more.
Capital (max/min): EUR 31,000 with 1/4 released at the creation.
Shareholders and liability: Liability is limited to the amount contributed.
General Partnership (SENC)
Number of partners: One or more partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Partners' liability is joint and unlimited on obligations and debts of the company.
Limited Partnership (SECS)
Number of partners: Minimum 2 with no limitation on the number of partners.
Two types of partners: active partners and sleeping partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Active partners' liability is joint and several. Liability of sleeping partners is limited to the amount contributed.
Cooperative Company
Number of partners: Minimum 7 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Partners' liability is joint and several or divided, unlimited or limited to amount contributed depending on the status.
The Competent Organization
The Trade and Companies Registry.
Search a Company or a Financial Report
Trade Registry
 
Setting Up a Company Luxembourg OECD
Procedures (number) 6.0 5.0
Time (days) 19.0 12.0

Source: Doing Business.

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

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Working Conditions

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.

Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
EUR 1,757 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: EUR 4,212 (source: ILO, 2011);
Gross average monthly wage of women: EUR 3,656 (source: ILO, 2011).
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% for an employee and 14.05 % for a worker.

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Social Partners

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 defend union interests in collective negotiations during meetings with the employer, public and social authorities. They also provide free judicial aid.
Unions
LCGB
OGBL (in French)
Unionization Rate
Around 50% in 2007.
Labor Regulation Bodies
Ministry of Labor
Federation des Industriels Luxembourgeois (FEDIL)

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Last Updates: January 2015