What can I ask of my accountant as an entrepreneur?

“Can my accountant help me with launch procedures for my business? Can they help me draft my terms and conditions? What about my first contracts? I know I can rely on them for balance sheets and all, but what about my statements and reports? Can they help with HR, or ease administrative management?”

In other words, when can you call upon the assistance of your accountant? It might seem straightforward at first glance, but it doesn’t take long to realize – once you get into applying for business permits and more concrete business management topics – that the answer isn’t so obvious after all. When it comes to tax advice, legal advice and administrative support for HR… the lines can be blurred.

Since we have been asked these questions quite often, we’ve decided to go straight to the source to find the answers. Alexandre and Frédéric, from the fiduciary FinCorp, brought us answers to some of the most common questions we get from new entrepreneurs.

I’m ready to launch a business in Luxembourg. How do I proceed from here to make my project happen?

To move forward with your project, it’s time to actually establish your business.

Yes, but where do I start and how do I go about it? Can you help?

As an accountant-fiduciary firm, we can naturally help you with a wide range of services, beginning with opening a bank account for your company, drafting your articles of association and passing before a notary.

Great! All the indicators are green, I’ll start reaching out to my contacts to set my first meetings!

Two more steps before you can start working on contracts! And we can help you with both: you need to start by applying for a business permit from the General Directorate for Small and Medium-Sized Enterprises (1), then registering for VAT. Anyone who carries out an activity that confers upon them the status of a taxable person (meaning anyone who carries out business operations such as selling goods or services on an independent basis), must register for VAT (2). With these two steps duly completed, you can begin selling goods or providing services to your customers, and thus issuing invoices.

Once your business is incorporated, you will be able to sign a lease if you need a business space, and purchase supplies like computer equipment.

Next, are you able to help me draft my sales contracts and general terms and conditions?

Unfortunately, we cannot. As accountants, we do not have the skills required to help with those points. We are specialists in accounting law. It’s best to contact a lawyer who is specialized in the matter. If you wish, we can put you in touch with one of our specialized partners! Finding the right person to help depends on your specific needs, your budget, working relationship and the amount of time required to implement the things you need.

What accounting requirements must I meet for my company?

Commercial companies with a legal personality are required to keep proper and regular accounting records. The company’s accounting must be done via a books and accounts system in accordance with conventional accounting rules for double-entry bookkeeping.

As an accountant-fiduciary firm, we can help by providing access to a digital platform where you can send us your bank statements, the invoices for your purchases and sales, and any documents you receive from the Direct Tax Administration (ACD - Administration des Contributions Directes) (3) and the Registration Duties, Estates and VAT Authority (AED - Administration de l’Enregistrement et des Domaines) (4).

We will handle your company’s accounting chronologically and in full, and proceed to publish your annual accounts with the Luxembourg Business Registers (RCS – Registre du Commerce et des Sociétés) (5).

What about taxes?

Regarding indirect taxes, we can help you prepare VAT statements for your company in line with the periodicity set by the AED. For direct taxes, a tax return must be filed annually.

Down the road, I intend to hire someone to help me with certain tasks. Can you help me with the administrative procedures?

We can, of course, assist you in registering your company and/or employee with the relevant administrations. We can also prepare and send out monthly salary statements for employees.

(1) General Directorate for Small and Medium-Sized Enterprises (website in FR) / (2) taxable person definition / (3)  ACD (website in FR) / (4) AED / (5) RCS