Accounting obligations of businesses

The obligation to keep accounts and draw up an annual account concerns:

Other companies may be subject to specific or reduced requirements.

For companies subject to general accounting rules, the different legal obligations may vary and can determined according to certain criteria, such as the size of the company, its legal form, its place of establishment, the sector of activity, the issue of securities, the notion of public interest...

Who is concerned

The obligation to keep appropriate accounts and draw up an inventory concerns the following undertakings:

How to proceed

Obligations

The company's accounts must be kept in accordance with a system of books and accounts that complies with the general rules of double-entry accounting.

This rule does not apply to traders who are natural persons and whose turnover for the last financial year, excluding VAT, does not exceed EUR 100,000.  

These traders can:

  • keep simplified accounts;
  • file the required accounting documents with the RCS in accordance with the terms and conditions applicable to them.

The law does not require computerised accounting, but the accounts must be:

  • chronological;
  • complete, and cover all:
    • operations;
    • assets and rights of any kind;
    • liabilities, obligations and commitments of any kind;
  • all registrations must be made without delay and in an accurate manner.

The requirements for filing accounting documents with the Trade and Companies Register (RCS) are different if the company uses the standard chart of accounts (plan comptable normalisé - PCN). In this case, it must first use the platform for the electronic gathering of financial data (eCDF).

The documents must be kept for:

  • 10 years; or
  • 5 years in the event of liquidation;
  • in Luxembourg;
  • in electronic or paper format.
In commercial matters, properly kept business records may be admitted as evidence in a dispute between traders by the judge.

Standard chart of accounts

All Luxembourg businesses are, in principle, required to produce annual accounts in accordance with the standard chart of accounts.

The standard chart of accounts (plan comptable normalisé - PCN) ensures that all businesses apply the same accounting structure. It thereby:

  • reduces the businesses' reporting requirements vis-à-vis the authorities;
  • simplifies the analysis of their financial situation by partners (auditors, banks, suppliers, etc.).

After the close of the financial year, businesses must:

Who to contact

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