Insights
Operating in Luxembourg Without a Company
Insights · By Chen ChunJie · Published 8 November 2026
Many foreign companies, particularly in finance and tech, start in Luxembourg with a few people and no local entity. This guide explains what you can do without a Luxembourg company, when you need one and how to move from one stage to the next.
Last reviewed in November 2026 against the Labour Code, the 2026 social minimum wage and index tranche, CCSS rates and Guichet.lu guidance. Rates change, so we confirm them for each engagement.
What you can do without a Luxembourg company
| Activity | Company needed? |
|---|---|
| Employing staff | Yes, or a defined service from a Luxembourg employer |
| Engaging independent professionals | No, if they are genuinely independent |
| Selling from abroad | Not for hiring, but check VAT and PE |
| Regulated financial activity | Usually a licensed local entity |
Why lending staff does not work
Luxembourg bans making staff available to another company outside authorised cases, and agency work is limited to temporary tasks. A provider that simply lends you workers long term creates risk for both sides.
No Luxembourg company yet? We can take on a defined service, with our Local Team employing and directing the people who deliver it. See Employer of Record in Luxembourg.
When a local company makes sense
Once the team is large and long-term, a SARL, SA or branch is usually the next step, and a business permit may be needed for the activity.
Permanent establishment risk
Staff who habitually conclude contracts for a foreign company can create a permanent establishment. Review revenue-generating roles with your tax adviser.
Moving to your own company
When your company is registered, we agree a transfer date and the team joins your company with their service recognised.
FAQ: operating without a company
Can a foreign company employ people in Luxembourg directly?
Only by registering as an employer with the CCSS and running Luxembourg payroll. A defined service from our Local Team avoids that.
Can I hire contractors without a company?
Yes, for genuinely independent work. See On-Demand Talent in Luxembourg.
Can an agency lend me staff long term?
No. Agency missions are limited to temporary tasks and 12 months.
Need people working in Luxembourg?
We take on a defined service, and our Local Team employs and directs the people who deliver it, with payroll, social security and the paperwork handled.
Related
How we get work done in Luxembourg.
Contracts, leave, notice and more.