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How to open a business bank account in Luxembourg

Opening a business account in Luxembourg is a straightforward process. However, it has unique features that can confuse a new business owner.

From the smallest to the largest, a corporate account is an essential part of any business. It is necessary for transactions, and in some cases its creation is a mandatory requirement for opening a business.

Every business in Luxembourg needs a business account, without exception. Even sole proprietors and self-employed persons are required to open an account to make payments, although in their case the process is not much different from opening a personal account.

In the case of SARL (analogous to LLC), SA (analogous to Ltds) and other types of companies, things are a bit more complicated: you need a company bank account to complete the company registration process. Without it, you won't be able to start and run a business.

If you are setting up a SARL or any other type of company, you will need a certain list of documents:

The bank will request
Something is missing
Make sure you have all the necessary documents prepared.
*The mandatory items are marked with red asterisks.
Company registration details
Including the number issued by the national company registry
Certificate of incorporation
These must be apostilled, notarized copies
Directors' details
And copies of their IDs
Beneficiary information
Description of principal business
Official confirmation of the source of the authorized capital
Projected annual account turnover
Bank questionnaire
Something is missing
Make sure you have all the necessary documents prepared.
*The mandatory items are marked with red asterisks.

Luxembourg banks carefully follow the KYC — "Know Your Customer" procedure. Therefore, they have the right to ask you for any additional information they deem necessary. This can include information about the main contractors and examples of contracts with them, planned regions of work, and much more.

At first glance, the task may seem simple. In reality, however, it is not. Luxembourg is famous for its banking sector, so there are a lot of credit institutions here. Therefore, there are many banking products.

To choose the right bank, you should know a few key parameters:

What types of businesses does the bank serve
Can the bank offer special conditions for your type of business
In which currency are transactions made, with which countries and how quickly
Under what conditions is the account maintained

It is worth remembering that a particular bank may work differently with individual entrepreneurs, small and medium businesses. As a rule, it is better to negotiate with several financial organizations at once, as many subtleties are not obvious at first.

Banks
Luxembourg
Finance
Read more about banks in Luxembourg in our article
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Banks are very strict about the security and structure of documents. When you find a suitable financial institution, be prepared to sign several contracts.

The contract may be standard or customized, but must include the following elements:

  1. Rights and duties of the parties

    The terms of the relationship between the Bank and the Client are set out below

  2. Fees and prices

    All transactions for which a fee is charged must be specified in the contract

  3. Renewal and termination conditions

    Please read this point carefully to avoid unpleasant situations

Never sign a contract if you are not sure about the content of a particular paragraph. If a controversial situation comes up, it is better to refuse and consult a professional lawyer.

To open a company in Luxembourg, you need to deposit share capital in your bank account. This is the key point of the whole process.

The authorized capital must be deposited into the account before signing the Articles of Incorporation. You will not be able to proceed with the company registration without this step.

You will need to prepare three documents:

  • A certificate confirming the company name;
  • Business license (issued if all requirements for obtaining it are met);
  • Draft Articles of Association of the company to be established and a package of all documents required to open an account from Step 1.

Based on the draft charter, the bank will open an account that will be blocked for any transactions. You can make only the first deposit, which is the authorized capital. After that, the bank will issue a certificate of blocking.

The last step is to unlock the company account. To do this, you will need to:

  1. Present the Certificate of Blocking to the Notary

    This serves as confirmation of the payment of the company's authorized capital.

  2. Complete the company registration

    Complete the procedures, formulate and approve the Articles of Association, and obtain all the necessary documents

  3. Obtain a certificate of unfreezing of funds from a notary 

    The certificate is called a certificat de déblocage

  4. Submit a certificate of unfreezing to the bank

    It must be accompanied by the final version of the deed and additional documents required by the bank

The bank will then make a final check and, if everything is in order, will unblock the account. After that, the company's capital can be managed independently.

faq

Frequently Asked Questions (FAQ)

How long does it take to open a business account

Can I use a business account immediately after opening it

Is it possible to do without a business account in Luxembourg

We took photos from these sources: JESHOOTS.COM at Unsplash

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