Cessation of activity by the trader (natural person)

This page was last modified on 01-06-2016

A sole proprietorship (sole trader / self-employed worker) that ceases its activities or whose business manager / operator leaves the company must carry out a number of administrative steps and formalities in order to cancel affiliations or authorisations in matters of:

  • business permit;
  • social security;
  • VAT;
  • trade and companies register;
  • direct tax, etc.

Forms / Online services

Carry out your procedure:

Who is concerned

Any trader, natural person, ceasing his activities or whose business manager / operator leaves the company must report it to the various organisations where he is affiliated or registered.

These deregistrations/cancellations may be necessary following the:

  • retirement of the business manager / operator;
  • sickness or death of the business manager / operator;
  • sale of the business;
  • departure of the business manager for any other reason;
  • achievement or termination of the business purpose;
  • court ruling;
  • bankruptcy.

Costs

Only the formalities with respect to deregistration with the Luxembourg Business Registers (LBR) are charged for.

These costs are laid down in the RCS table of tariffs.

How to proceed

Cancelling the business permit

The holder of the business permit must send a request for cessation of business by registered letter to the General Directorate for SMEs and Entrepreneurship.

The reason for ceasing business (resignation, retirement, cessation of business, etc.) must be justified by any probative document (ex.: letter of resignation, dismissal or any other event which may justify the cancellation).

Cancelling affiliation with the social security

Within 8 days after the cessation of activity the business manager / owner must:

  • deregister himself as a self-employed worker by sending a declaration of end of employment for self-employed workers;
  • cancel the affiliation of employees, if any, by sending a declaration of end of employment for employees;
    Declarations of end of employment must be duly filled in, dated and signed by the business manager. They include the following information:
    • the self-employed's national identification number (matricule - 13-digit social security number) / the employee's and the employer's national identification number;
    • the business address;
    • reason for the cessation of activity / departure of the employee;
    • date of the end of the activity / of the last day of work.

The applicant receives an acknowledgment of receipt for verification purposes.

In the event of late submission of the declaration of end of employment for employees (more than 30 days delay), the Joint Social Security Centre will fine the employer EUR 50 for each month of delay (with a maximum limit being EUR 2,500).

Declaration of cessation with the Indirect Tax Authority

The business manager / owner must send a declaration of cessation to the Indirect Tax Authority within 15 days after ceasing his commercial activity.

The declaration must be duly filled in, dated and signed by the business manager. It includes:

  • the VAT number of the business;
  • the contact details of the business manager;
  • the contact details of the buyer, if any;
  • the value of the business broken down according to the VAT rates applicable during the transfer.

For any transfer, except the transfer of all or part of the assets to another taxpayer, the assignor must charge value added tax and declare and pay the tax due.

Deregistration with the trade and companies register (RCS)

The business manager/owner must submit the request for deregistration online to the trade and companies register (RCS) and indicate:

  • the RCS registration number;
  • the contact details of the business manager;
  • the date of cessation of business;
  • the reason for deregistration (transfer or cessation);
  • where applicable, the name of the assignee (buyer).

Notification of cessation to the Inland Revenue

Unless he moves to a foreign country, the trader remains liable for tax as a natural person. Hence, he does not need to report the cessation of activity to the Inland Revenue (Administration des contributions directes). However, if there is a foreseeable decrease of income he may request the adjustment of his advance payments to his tax office.

Depending on his business activity, the business manager must also:

  • for traders, notify the cessation of activity to the Chamber of Commerce;
  • for craftsmen, return the craftsmen card to the Chamber of Trades, who will then inform the social security institutions;
  • in the case of industrial activities, inform the Ministry of the Economy / the Fedil;
  • if the business held an 'operating permit (known as commodo/incommodo authorization)', inform the competent authority, etc.

Who to contact

Ministry of the Economy

B.P. 535 - L-2937 - Luxembourg
Luxembourg
Phone: (+352) 247-74700
Fax: (+352) 247-74701
Email info.pme@eco.etat.lu

Opening hours
The telephone helpline is open Monday to Friday, from 13.00 to 17.00 (not on public holidays).
125, route d'Esch
L-2975 - Luxembourg
Luxembourg
Phone: (+352) 40141-1
Fax: (+352) 40 44 81

Opening hours
08.00 - 16.00
Indirect Tax Authority
1-3, avenue Guillaume
L-1651 - Luxembourg
Postal box B.P. 31, L-2010 Luxembourg
Luxembourg
Phone: (+352) 247-80800
Fax: (+352) 247-90400
Email info@aed.public.lu

Luxembourg Business Registers
Maison de l'Orientation (anc. Maison de Retraite)
7, avenue de la Gare

L-9233 - Diekirch
Postal box B.P. 20 / L-9201 Diekirch
Luxembourg
Phone: (+352) 2680 3760
Fax: (+352) 2680 3761
Email helpdesk@rcsl.lu

Opening hours
Monday by appointment only
Luxembourg Business Registers
14, rue Erasme
L-1468 - Luxembourg-Kirchberg
Postal box L-2961 Luxembourg
Luxembourg
Phone: (+352) 26 428-1
Fax: (+352) 26 42 85 55
Email helpdesk@rcsl.lu

Opening hours
Monday to Friday from 09.00 - 12.00 and 13.30 - 16.00
Registration helpdesk: Monday to Friday by appointment only
Luxembourg Inland Revenue (ACD)
45, boulevard Roosevelt
L-2982 - Luxembourg
Luxembourg
Phone: (+352) 40 800-1
Fax: (+352) 40 800-2022

Chamber of Commerce
7, rue Alcide de Gasperi
L-2981 - Luxembourg
Luxembourg
Phone: (+352) 42 39 39-1
Fax: (+ 352) 43 83 26
Email chamcom@cc.lu

Opening hours
08.00 - 12.00 and 14.00 - 18.00
2, Circuit de la Foire Internationale
L-1016 - Luxembourg
Postal box B.P. 1604
Luxembourg
Phone: (+352) 42 67 67 - 1
Fax: (+352) 42 67 87
Email contact@cdm.lu

19-21, boulevard Royal
L-2449 - Luxembourg
Postal box L-2914
Luxembourg
Phone: (+352) 2478-2478
Fax: (+352) 46 04 48
Email info@eco.public.lu