Placing your registered office with a domiciliation agent is legal, regulated and sometimes the right call. But domiciliation does not replace real premises for the business permit, nor the substance tax authorities expect. Here is the framework, the prices and the limits.
In short. Company domiciliation in Luxembourg is governed by the amended law of 31 May 1999: a company sets its registered office at the address of a third party, the domiciliation agent, who must belong to a regulated profession (chartered accountant, lawyer, statutory auditor, financial sector professional). A written agreement is mandatory, and the agent carries real verification duties. What domiciliation does not give you: the physical premises the business permit requires for a commercial activity, or tax substance. It is a precise tool, not a shortcut.
The question comes up in nearly every formation project: "can I domicile my company in Luxembourg without renting offices?". The honest answer has two parts. Yes, domiciliation is a legal, common and useful mechanism in well-defined cases. No, it does not replace a real establishment when your activity requires one. The difference between the two is exactly what this article covers.
What exactly is company domiciliation?
Domiciliation means a company establishes its registered office at the address of a third party, the domiciliation agent, who provides services tied to that address: mail handling, secretarial work, sometimes administrative support. In Luxembourg, the practice is governed by the amended law of 31 May 1999, which reserves the activity to regulated professions.
Two neighbouring situations fall outside that law: setting up the office in premises you own or lease in your own name, or occupying a real desk in a coworking space under a genuine occupancy contract. The 1999 law targets the case where the office sits with someone else who provides services in that capacity.
Who can act as a domiciliation agent in Luxembourg?
The law restricts domiciliation to professionals under supervision: credit institutions and other professionals of the financial and insurance sectors, lawyers admitted to the Bar (list I) and European lawyers (list IV), statutory auditors (réviseurs d'entreprises) and chartered accountants (experts-comptables). A "domiciliation company" that belongs to none of these categories is operating illegally.
That filter is not decorative. The agent must verify the real identity of the domiciled company's governing bodies, check compliance with the rules on the registered office, keep documentation current and retain it for 5 years after the relationship ends. Luxembourg domiciliation is a supervised framework built on anti-money-laundering requirements, not a commercial letterbox.
The domiciliation agreement: what it must contain
The relationship must rest on a written domiciliation agreement between the agent and the company. It authorises the registered office at the address concerned and details the services provided: mail management, meeting rooms, administrative work. A practical point worth knowing: termination of the agreement takes effect towards third parties from its filing with the Trade and Companies Register (RCS). A company that loses its agent without a new address quickly finds itself non-compliant.
Torn between domiciliation, coworking and a commercial lease? The right choice depends on your activity and your business permit, not on price alone. We review it with you before you sign anything. Book a 30-minute call.
How much does domiciliation cost in Luxembourg?
Rates vary widely with the provider and the scope of services (a bare address with mail handling, or full secretarial support with meeting rooms). As an order of magnitude, expect from a few dozen to several hundred euros per month, with entry packages often around 100 € to 300 € per month before add-ons. These figures are indicative (July 2026): ask for the detail of what the package covers, because that is where offers really differ.
Do not compare that cost with office rent alone: domiciliation with a chartered accountant puts a professional presence behind the address, something a PO box will never provide, legally or in the eyes of your bank.
What domiciliation does not allow
This is where projects go wrong. Two limits frame everything.
The business permit first. For a commercial or craft activity, the Ministry of the Economy requires physical premises suited to the activity: a real place of operation, not a mail address. A company selling services with staff and equipment will not meet that condition with domiciliation alone. The exact conditions are covered in our guide to the business permit in Luxembourg.
Tax substance second. A company domiciled in Luxembourg but run entirely from abroad exposes itself to requalification: neighbouring tax administrations look at where decisions are actually taken. The point is especially sensitive for cross-border and non-resident founders, ground we cover in setting up a company in Luxembourg as a non-resident. Domiciliation is an address; substance is an operating reality. One does not manufacture the other.
Domiciliation, coworking or lease: how to choose
| Option | Who it suits | Main limit |
|---|---|---|
| Domiciliation (1999 law) | Holding companies, asset-holding structures, early-stage intellectual services | Insufficient on its own for a commercial or craft operation |
| Coworking / flexible office | Service providers, small teams | Check the contract grants real occupancy, not just an address |
| Commercial lease | Activity with staff, stock or client visits | Heavier cost and commitment |
The choice therefore starts from the activity, in this order: what the business permit requires, what your bank requires, what your tax position requires. Price comes last. And if you are at the incorporation stage, the address question is settled together with the legal form: our guide to setting up a SARL in Luxembourg places this step in the full journey.
A case to make it concrete
Illustrative example (not an actual client). A cross-border consultant wants to set up his advisory company and "take a domiciliation to move fast". On review: his activity is intellectual, no stock, no staff, but he plans to work four days out of five from home in France. The structure chosen: a real coworking desk in Luxembourg with effective presence two days a week, rather than bare domiciliation, precisely to hold substance and secure the permit. Domiciliation would have been cheaper, and more fragile.
Frequently asked questions
Is domiciliation legal in Luxembourg?
Yes, it is expressly organised by the amended law of 31 May 1999, provided the agent belongs to an authorised profession and a written agreement is in place.
Who can host my registered office?
A regulated professional: chartered accountant, lawyer (list I or IV), statutory auditor, credit institution or another professional of the financial or insurance sector. Nobody else.
Is domiciliation enough to obtain the business permit?
For a commercial or craft activity, generally not: the ministry requires physical premises suited to the activity. Domiciliation can fit structures without their own operations, such as certain holding companies.
How much does company domiciliation cost in Luxembourg?
Depending on services, from a few dozen to several hundred euros per month, with entry packages often between 100 € and 300 € per month (orders of magnitude, July 2026).
What happens when my domiciliation agreement ends?
Termination becomes effective towards third parties from its filing with the RCS. Arrange the new registered address before the agreement actually ends, or the company becomes non-compliant.
Why Advena?
- Formation, finance and digital under one roof: the registered office is decided together with the legal form, the permit and the tax position, not in isolation.
- Luxembourg grounding: RCS, business permit and substance requirements handled with local field knowledge.
- Clear fixed pricing, no hourly billing: you know what you pay before you start.
- Direct access to the founders: the partners handle your file, not a junior.
To go further: Setting up a SARL in Luxembourg: steps, capital and procedures · Business permit in Luxembourg · Setting up a company in Luxembourg as a non-resident · Setting up a holding company in Luxembourg: the SOPARFI · SARL-S in Luxembourg: starting with reduced capital
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