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Company Formation Luxembourg



Liaison Office in Luxembourg

Updated on Saturday 16th December 2023

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Liaison office in Luxembourg
If you have a company in a foreign country and you plan on extending your business in Luxembourg as well, you may choose to open a branch or subsidiary in Luxembourg, that requires registration with the Trade Register, or set up a liaison office, meaning a lighter structure also known as a representative office.
 Quick Facts  
 The purpose of a liaison office in Luxembourg


- business promotion,

- business research activities,

- business negotiation, etc. 

 What activities can you undertake with a liaison office in Luxembourg?

- marketing and promotion,

- contract negotiation with local and/or foreign customers,

- testing the local market, etc.

 How can a representative office be registered in Luxembourg?

- presenting a copy of the Articles of Association of the foreign company,

- offering information about future activities and name of the liaison officer in charge of the office representation 

 Can a liaison office in Luxembourg have commercial activities? (YES/NO) NO 
 Contracting potential clients and partners (YES/NO)


 Local agent required (YES/NO)


Attributes of a liaison officer 

- contracting future clients and collaborators,

- attending to business meetings,

- promoting the business activities of the parent company,

- negotiating business contracts,

- research and reports 

 Bank account for a liaison office in Luxembourg

Necessary for different financial operations made by the liaison office in Luxembourg 

 Allowed to invoice local customers

 Not allowed

 The institution that authorizes the liaison office in Luxembourg Trade Register in Luxembourg 
 The costs of opening a representative office in Luxembourg

Supported by the parent company

Travel requirements 

Not required for opening a liaison office in Luxembourg 

Business advertising through a liaison office in Luxembourg 

 A popular option for foreign companies interested in business in Luxembourg

 Time frame for opening a liaison office in Luxembourg

 A few days

Why choose our company formation agents in Luxembourg? 

We offer:

- assistance for registration with the relevant authorities in Luxembourg,

- support in creating the solicited documents of a liaison office,

- personalized offers,

- affordable prices. 


Why open a liaison office in Luxembourg?

Unlike a branch or subsidiary, that requires registration with authorities, a liaison office is a much simpler alternative that allows a foreign legal entity to create on-site contacts in Luxembourg with stakeholders such as potential customers or suppliers. The liaison office can help the business development by ensuring communication, advertising and other public relation activities with partners and clients, undertakings that are hard to perform remote. A liaison office allows a company to be at the heart of the business environment with less documentation and responsibilities.
On the other hand, if you want to open a company in Luxembourg, we suggets you discuss all the details with our business formation agents. You can also discover an infographic about liaison offices in luxembourg:
5 reasons you should open a liaison office in Luxembourg

Actions allowed to be undertaken in a liaison office

A liaison office in Luxembourg is not allowed to conclude contracts in the name and for the account of the foreign company, as its main purpose is related to research, public relations and communication and not at all with commercial activity. The liaison office has a very strict preparatory relay role in the early stage of the negotiation process lead between client and the respective foreign company. Therefore, all documents, such as invoices or contracts, must be issued or signed, depending of the type of document, by the foreign parent company.

The liaison office does not have legal personality

In Luxembourg, the liaison offices opened by a foreign entity do not have a legal personality. Here are other important aspects:
  1. It is not separated by the foreign company’s heritage,
  2. It does not have a distinct name, a trade name, own property or capital.
If the liaison office has financial problems, then the foreign company that opened the liaison office in Luxembourg is liable for the debts of the office.
If you would like the support of our accountants in Luxembourg you can discover the services offered by our experts. You can benefit from a certified team of accountants, in charge of payroll, bookkeeping, tax registration, preparation of annual financial statements, and submission to the revealing authorities. On the other hand, business owners can ask for tax minimization options that can be implemented in the firm.
We present you a video with some of the reasons why a liaison office in Luxembourg is a good option for you:


Responsibilities of a liaison officer in Luxembourg

If the representative office in Luxembourg is your business choice, then you will need a liaison officer. Here are some of his/her responsibilities:
  • Coordinates the activities of the representative office in Luxembourg, in order to promote the respective business.
  • Develop permanent communication between clients in Luxembourg and the represented company.
  • Must have negotiation skills.
  • Fostering relationships.
  • First of all, he must understand the business direction of the company he represents, to be able to provide complete information to those interested.
  • Among the responsibilities of a liaison officer is the reporting, as well as the analysis required by the company it represents.
  • A good liaison officer should have experience in business, international relations, management, or political science.
These are some of the responsibilities, but also the attributes of a liaison officer. If you are interested in opening a representative office in Luxembourg, we recommend the services offered by our specialists. They can help you with company formation in Luxembourg.

Differences between branches in Luxembourg and liaison offices

Branches in Luxembourg are extensions of foreign companies in this territory. They are supervised by the parent company, including from a financial point of view, and must not carry out activities other than those already established.
On the other hand, a representative office in Luxembourg must be strictly limited to the parent company's projects, namely its promotion on international markets, in this case, Luxembourg. Also, the liaison office in Luxembourg does not undertake economic activities to generate income.

Who financially supports the representative office in Luxembourg?

A liaison office in Luxembourg represents the interests of a foreign company in this country. Having activities strictly for the promotion of the respective business, from a financial point of view it is supported by the foreign company. It can be said, therefore, that the expenses of this representative office come under the attention of the entity that wants to be promoted in Luxembourg. However, it should be mentioned that all these expenses must be proven with invoices and various documents, which reach the parent company and the accounting department.

Areas where liaison offices in Luxembourg can be found

Opening a liaison office in Luxembourg has a specific purpose, depending on the field in which it operates. Here are some examples:
  • Import and export,
  • education,
  • Health care,
  • Government,
  • Large organizations,
  • militaries,
  • External relations.

The tax regime for liaison offices in Luxembourg

As mentioned in this article, a representative office in Luxembourg has no economic operations and therefore does not generate income or profits. Thus, it can be said that this entity is not subject to corporate tax in Luxembourg. Also, a liaison office in Luxembourg does not have to make and submit VAT declarations because it does not issue invoices. On the other hand, if you purchase goods and services in Luxembourg, you must pay VAT. We recommend those interested in the charging system for the liaison office in Luxembourg ask our local specialists for information.
Here is some information about the Luxembourg economy:
  • According to the 2022 Global Competitiveness Index and the World Economic Forum, Luxembourg ranks 13th, in terms of economy.
  • The main investor in Luxembourg is Bermuda, with around 13.5% of the total FDI.
If you are interested in opening a company in Luxembourg or a liaison office, our local agents will provide the needed assistance. Contact us for more information.  We offer company incorporation in Luxembourg and related services.


Meet us in Luxembourg

Contact our specialists in company formation in Luxembourg, who have a large experience in finance and international business. 

Set up an appointment with us at +352 671 533 922. Alternatively you can incorporate your company without traveling to Luxembourg.

Contact us



As a BridgeWest partner for many years, is for sure a great choice when wanting to start a business in this important financial hub. International entrepreneurs can rely on the professionalism of this team.

Vlad Cuc, Director of BridgeWest

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