Entreprise individuelle (commerçant personne physique) EILuxembourg
What it takes to form, own and run a sole trader in Luxembourg, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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Elle comporte néanmoins une exposition plus élevée aux risques financiers de l’activité qui se confond avec le patrimoine personnel de l’entrepreneur indépendant.
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Il n’y a pas de formalisme de création de l’activité et il n’y a pas constitution d’une personnalité juridique indépendante.
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commerçant personne physique 14,61 € - 10,96 € 14,61 €
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l’ exploitant dans le cadre d’une entreprise individuelle
Form it
Who registers it
- Registry
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Yes
What it takes to form
- A notary
- Not required
- A resident director
- Does not apply
- Paying up the capital
- No paid-up rule: no capital is required; the sole trader decides the stake to commit to the business.
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Aucun capital minimum n’est requis
Own it
Who may own and run it
- Directors
- Does not apply
- Shareholders
- Does not apply
- Members
- At least 1 · at most 1 · one person may form it alone
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Il n’y a pas de formalisme de création de l’activité et il n’y a pas constitution d’une personnalité juridique indépendante.
- A local company secretary
- Does not apply
- A local registered agent
- Not stated
The registry’s and the law’s own pages do not mention it.
Each year, at the registry
- Annual registry fee
- Not stated
The registry’s and the law’s own pages do not mention it.
- Accounts on the public record
- No
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déposer ses comptes au siège de l’entreprise à la disposition de ceux qui sont concernés
- Audit for a small company
- Not required
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La loi n’impose pas de surveillance financière de l’entreprise individuelle.
- Audit
- The law imposes no financial supervision of a sole trader (guichet.lu).
Important dates
When each obligation falls due, as the authority states it.
- Affiliation to social security as a self-employed person
- Not in our records
With Social security
Not stated on guichet.lu when checked
- Register for VAT with the Administration de l’enregistrement, des domaines et de la TVA af
- Not in our records
With AED (VAT)
Not stated on guichet.public.lu/fr/entreprises/creation-developpement/constitution/entreprise-individuelle/immatriculation-commercant.html when checked
What is public
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Through owners
Transparent: the sole trader (exploitant) bears income tax (personal income tax if a natural person, corporate income tax if a capital company); the municipal business tax also applies, with an allowance of EUR 40,000 (EUR 17,500 where the taxpayer is subject to corporate income tax), 3% base rate times the commune's rate.
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l’ exploitant dans le cadre d’une entreprise individuelle
- CFC rules in Luxembourg
- Yes
Close it
Closing it
The other end, which most guides leave out.
- Route
- Deregistration (radiation) of the commerçant from the RCS by electronic filing; the steps for ending the business are not set out on the pages read.
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commerçant personne physique 14,61 € - 10,96 € 14,61 €
- Statutory fee
- EUR 14.61
Every business in Luxembourg
VAT
- Standard rate
- 17%Official European Commission, Taxes in Europe Database situation on 2026/07/01
- Other rates
- 14% Goods and services designated in Annex C to the VAT Act of 12 February 1979
- 8% Goods and services designated in Annex A to the VAT Act, and certain supplies covered by Article 40(1)(1)(b)-(e)
- 3% Goods and services designated in Annex B to the VAT Act (super-reduced rate)
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un taux intermédiaire de 14% pour les livraisons de biens et les prestations de services ainsi que pour les acquisitions intracommunautaires et importations de biens
- Registration threshold
- EUR 50,000
annual turnover excluding tax (small-enterprise VAT exemption); calendar year
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Taxable persons whose annual turnover excl. tax during a calendar year has not exceeded EUR 50,000 benefit from a VAT exemption
- Voluntary registration
- Yes
A taxable person benefiting from the small-enterprise exemption, or from a flat-rate scheme, may register for VAT; a taxable person may also opt to tax exempt lettings.
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The following may register for VAT:
- A foreign company
- Registers from its first taxable supply
Any person not established or domiciled in Luxembourg who carries out supplies taxable in Luxembourg must register, with no turnover threshold, except companies reporting through the one-stop shop. The registration guidance names no fiscal representative requirement.
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in general, any person who is not established or domiciled in Luxembourg , but who carries out transactions (supplies of goods or services), the place of taxation of which is deemed to be in Luxembourg
- Returns filed
- Depends on the business
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the monthly scheme is legally provided for by default
- Tax authority
- Registration page read 2026-10-22
Payment and banking services
5 services name Luxembourg on their own list: Paysera, Airwallex, Stripe, Revolut, N26. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Sole traderDerived our grouping, the same words in every country
- Name in law
- Entreprise individuelle (commerçant personne physique) (EI)
- ISO 20275 code
- 2IGLSecondary GLEIF, Entity Legal Forms code list