Luxembourg is situated at the heart of Europe, bordering three of the European Union’s most popular economies, and over the past decade, the country has steadily enhanced its position as Europe’s intercontinental logistics hub for value-added logistics activities.
With an open, innovative, and export-driven economy, Luxembourg provides global companies with several strategic advantages for conducting business successfully to, in, and from Europe, especially in the logistics industry.
Starting a business in the logistics industry in Luxembourg
Starting a business in the logistics industry, such as a transportation and storage company, in Luxembourg is beneficial for entrepreneurs as Luxembourg has enforced a multi-product specialization strategy in its logistics sector, and the country offers fast and easy procedures for import, transit, and export including paperless customs processes, simplified customs procedures with Authorised Economic Operator status and the possibility to assign a fiscal representative.
Additionally, benefiting from the country’s excellent digital infrastructure and expertise in handling and processing big data, the government plans on turning Luxembourg into a next-generation logistics 4.0 hub, which is the networking and integration of logistics processes.
Forming a transporting and storage business in Luxembourg is subject to several laws and regulations imposed by the applicable authorities, depending on the means of transportation. Below, are the general process involved.
Registration of a logistics company in Luxembourg
Opening a company that offers transporting and storage services in Luxembourg involves choosing a business form. The private limited liability company (S.á.r.l.) and public limited liability company (S.A.), are two of the most popular business structures used for business in Luxembourg, but there are other options such as the partnership and cooperative company.
After choosing the applicable form, the owner(s) will register it with the Trade Register. Your Damalion expert can help with this process.
After that, the company must apply for the necessary licenses for transporting the goods and the storage instructions, e.g., the Community license, which enables carriers to carry out the carriage of goods by road for hire in all of the European Economic Area and Switzerland.
Regulations on the transportation of goods in Luxembourg
Products intended for sale can be transported by land, air, or by railway in Luxembourg. There are regulations and requirements imposed on logistics companies, but these depend on the means of transportation. But the major one is getting a license.
- Land transport in Luxembourg is subject to certain restrictions, it also requires a license.
- On the other hand, railway transport is simpler and subject to fewer limitations, but all rail companies providing transport on the Luxembourg rail network must have a license provided by the Ministry of Transports and procure a safety certificate from the same ministry.
- Air transport is also a good choice for logistics companies in Luxembourg, considering the country has the 7th largest airfreight platform in Europe with air connections to all continents. Also, air carriage in Luxembourg requires a valid business license, delivered by the Directorate of Civil Aviation, as well as a valid Air Operator Certificate (AOC).
Storage regulations in Luxembourg
Entrepreneurs and investors who want to start transport and storage companies in Luxembourg must have a warehouse where the goods can be stored.
The storage of products transported by Luxembourg companies must also be done in accordance with specific regulations, such as environmental, waste management, and packaging regulations.
Located between Germany and France (the two of the biggest European consumer markets), Luxembourg is perfectly positioned to become a prime logistics hub in Europe for cross-border transactions.
To set up a transporting and storage business in Luxembourg, let’s go ahead and contact your Damalion expert now.
