Although one of the smallest nations in Europe, Luxembourg is one of the richest due to its strong economy, highly trained labor force, and favorable tax structure. The nation’s advantageous central-European position also makes it a prime center for international trade.
Luxembourg’s commercial real estate legislation
A variety of legal tools, such as statutes, rules, and case law, control this. In most cases, agreements are drafted in writing and signed in the presence of a notary public, who also records the transaction with the land registry. Developers must abide by zoning laws, and lease agreements must follow the Luxembourg Civil Code. Taxes may apply to commercial real estate transactions, and disagreements may be settled via litigation or other forms of alternative dispute resolution. To guarantee adherence to all relevant rules and legislation, professional legal guidance is advised.
How to begin a commercial real estate firm in Luxembourg
The essential actions to think about are listed below:
Market research
To determine the demand for this business in Luxembourg, thorough market research is required. To do this, it is necessary to analyze the various commercial property categories, including office space, retail, industrial, and logistics, and to pinpoint the regions with the largest demand.
Construct a business plan
All company endeavor needs a solid business plan to succeed. A target market study, marketing tactics, a description of the services the business will provide, the company’s goal statement, and financial predictions should all be included in the plan.
Get all required licenses and permits
Real estate brokers must receive a professional license to do business in Luxembourg, according to the government. An application must be submitted, an exam must be passed, and certain educational qualifications must be satisfied. The Ministry of Economics, which is in charge of issuing the license, may receive the application.
Create a network
Success in this sector requires the development of a strong network. This entails developing connections with prospective customers, industry leaders, investors, and other significant real estate market participants.
Secure finance
Significant financial resources are needed to launch a commercial real estate enterprise. Many financing options are available to entrepreneurs, including bank loans, venture capital, and private investors.
Choose a legal form
In Luxembourg, Société Anonyme (SA), Société à Responsabilité Limitée (SARL), and Société en Nom Collectif (SNC) are the most popular commercial legal forms. Each structure has unique benefits and drawbacks, so you should speak with a legal or financial expert to determine which one best meets your requirements.
Reserve a company name
The next step is to hold a company name reservation with the Registry of Commerce and Sociétés (RCS) in Luxembourg. The name must be original and unheard of. On the RCS website, you may make a name reservation.
Create the bylaws for the organization
The legal document that outlines the policies and procedures of your company is its articles of organization. According to Luxembourg legislation, the articles must be written and notarized. You have the option of writing the articles yourself or having a lawyer do them for you.
Deposit share capital
The minimum needed share capital must be deposited in a Luxembourgian bank account. The legal framework of your organization will determine the appropriate share capital size. For instance, you must deposit a minimum of €12,500 if you’re founding a SARL. Before you may register your firm, the share capital has to be deposited.
Register the company
After completing the aforementioned processes, you may register your company with the RCS. The articles of organization, evidence of share capital deposit, and proof of company name reservation are just a few of the paperwork you’ll have to provide. You may register your company with the RCS in person or online.
Register as a taxpayer
For tax reasons, you must register your company with the tax authorities in Luxembourg. Using the internet site MyGuichet.lu, this is possible.
Choose a location
It’s important to choose a desirable location for the company. The site needs to be convenient for travelers, have enough parking, and be near important commercial centers.
Employ a team
For the firm to succeed, it is essential to assemble the best team of experts. Real estate agents, attorneys, accountants, and other experts with knowledge of the sector should be on the team.
Create a marketing plan
To draw customers and establish the brand, a thorough marketing plan is required. This includes developing a website, and a social media following, running ads and engaging in other marketing initiatives.
Control risks
Entrepreneurs must be prepared to handle risks successfully since the real estate market is inherently dangerous. This entails creating a strategy for risk management and making sure you have enough insurance.
