Annual Financial Statements in Luxembourg: Complete Legal Guide
1. Overview
Luxembourg is one of Europe's leading financial and corporate centres, hosting approximately 179,000 Sociétés à Responsabilité Limitée (Sàrl) and 117,000 Sociétés Anonymes (SA) registered in the Dato Capital database, alongside thousands of investment funds, holding companies, and partnership structures. Every year, the vast majority of these entities are required to prepare annual financial statements (comptes annuels) and deposit them with the Registre de Commerce et des Sociétés (RCS), Luxembourg's trade and companies register.
Luxembourg annual financial statements are governed by a layered legal framework whose core is the Loi du 19 décembre 2002 concernant le registre de commerce et des sociétés ainsi que la comptabilité et les comptes annuels des entreprises (the 2002 Law), supplemented by relevant provisions of the Loi modifiée du 10 août 1915 concernant les sociétés commerciales (the LSC or Company Law), the Grand-Ducal Regulations implementing the balance sheet and P&L schemas and the Plan Comptable Normalisé (PCN), and the transposition of EU Directive 2013/34/EU (the Accounting Directive).
This guide covers the complete framework for annual accounts filed by companies and other enterprises in Luxembourg: what must be prepared, what must be filed publicly, which size-based exemptions apply, what accounting standards govern, and what sanctions arise from non-compliance.
2. Legal Framework
The primary and secondary sources of Luxembourg financial reporting law are:
| Instrument | Content |
|---|---|
| Loi du 19 décembre 2002 (2002 Law / LRCS) | Core accounting law: scope, accounting principles, balance sheet schema (Art. 34), P&L schema (Art. 46), abbreviated schemas (Arts. 35, 47), notes (Arts. 65–66), filing obligation (Art. 75) |
| Loi du 10 août 1915 (LSC / Company Law) | Entity-specific rules; management report content (Arts. 68–72); consolidated accounts obligation (Arts. 1711-1 to 1711-9); general assembly timelines |
| EU Directive 2013/34/EU | Harmonised EU framework; transposed into Luxembourg by the Law of 30 July 2013; sets size thresholds, balance sheet and P&L formats |
| RGD du 18 décembre 2015 | Prescribed forms and content of the balance sheet and P&L schemas (implementing Arts. 34, 35, 46, 47 of the 2002 Law) |
| RGD du 12 septembre 2019 (PCN 2020) | New Plan Comptable Normalisé, effective for FY beginning 1 January 2020 |
| RGD du 25 octobre 2024 | Raises size thresholds by 25% implementing Commission Delegated Directive (EU) 2023/2775; amends Arts. 35, 47 of the 2002 Law and Art. 1711-4 LSC |
| Loi du 23 juillet 2016 (Audit Law) | Governs the profession of réviseur d'entreprises agréé; transposes EU Directives 2006/43/EC and 2014/56/EU and EU Regulation 537/2014 |
| IAS Regulation (EC) 1606/2002 | Mandatory IFRS for consolidated accounts of listed companies |
| 2002 Law Art. 27 | Derogation procedure: individual exemptions from specific accounting provisions via the Justice Minister |
The Commission des Normes Comptables (CNC) is an independent advisory body that issues interpretive avis (opinions) and Q&A guidance on the application of Luxembourg accounting law, constituting the primary body of Luxembourg GAAP doctrine alongside the 2002 Law.
3. Entities Subject to Financial Reporting Obligations
Art. 75 of the 2002 Law and the related provisions of the LSC determine which enterprises must prepare and deposit annual accounts with the RCS.
Unconditional filing obligation
The following entities must prepare and file annual accounts regardless of turnover: - SA (Société Anonyme) - Sàrl (Société à Responsabilité Limitée) - SCA (Société en Commandite par Actions) - SE (Société Européenne) - Cooperative societies (SC) - Luxembourg branches of foreign companies (except branches of foreign credit institutions and insurance firms, which are subject to sector-specific rules) - GIE (Groupement d'Intérêt Économique) and GEIE (Groupement Européen d'Intérêt Économique)
Conditional filing obligation (turnover threshold)
The following entities must file only if their annual net turnover exceeds €100,000 excl. VAT: - SENC (Société en Nom Collectif) - SCS (Société en Commandite Simple) - Individual merchants (commerçants individuels)
Specific regime — SCSp
The SCSp (Société en Commandite Spéciale) has no legal personality and is traditionally exempt from preparing and filing full annual accounts regardless of turnover. Since the 2016 law reform, SCSp entities must prepare and file a balance des comptes (trial balance) under the PCN rather than full financial statements. However, SCSp entities that are regulated (CSSF-supervised insurance entities, credit institutions, IFRS users, securitisation companies, SICAR/FIAR vehicles) must prepare financial statements per the full Title III requirements of the 2002 Law, though they are dispensed from PCN format.
Entities not required to file
- SENC and SCS with annual net turnover ≤ €100,000 excl. VAT
- Individual merchants with annual net turnover ≤ €100,000 excl. VAT
- Temporary commercial associations (sociétés commerciales momentanées) and associations en participation
- Foundations (fondations) and non-profit associations (ASBL) — subject to separate legislation, not the commercial 2002 Law framework
- CSSF-supervised entities (credit institutions, investment firms, insurance, SICAV, SEPCAV) — subject to sector-specific CSSF/CAA accounting rules
4. Size Classification: Micro, Small, Medium and Large
Luxembourg divides reporting enterprises into four size categories that determine the scope of reporting, simplified filing options, and audit obligations. Classification is based on meeting two out of three criteria for two consecutive financial years (the "2-of-3, 2-consecutive-years" rule).
The Grand-Ducal Regulation of 25 October 2024 — implementing Commission Delegated Directive (EU) 2023/2775 — raised all size thresholds by 25% to reflect inflation between 2013 and 2023. The new thresholds apply to financial years beginning on or after 1 January 2023; reclassification takes effect earliest in financial year 2025 due to the two-year rule.
Size category thresholds (post-October 2024 RGD)
| Category | Balance sheet total | Net turnover | Average employees | Legal basis |
|---|---|---|---|---|
| Micro | ≤ €450,000 | ≤ €900,000 | ≤ 10 | 2002 Law Art. 35; RGD 25 Oct. 2024 |
| Small | ≤ €7,500,000 | ≤ €15,000,000 | ≤ 50 | 2002 Law Arts. 35, 47; RGD 25 Oct. 2024 |
| Medium | ≤ €25,000,000 | ≤ €50,000,000 | ≤ 250 | 2002 Law Arts. 35, 47; RGD 25 Oct. 2024 |
| Large | > €25,000,000 | > €50,000,000 | > 250 | Default (no simplified regime available) |
Previous thresholds (before October 2024): Micro: €350,000 / €700,000 / 10; Small: €4,400,000 / €8,800,000 / 50; Medium: €20,000,000 / €40,000,000 / 250.
Important exclusions: The micro and small simplified regimes are not available to: - Entities with securities admitted to trading on regulated markets (PIEs) - Credit institutions and investment firms subject to CSSF prudential supervision - Insurance and reinsurance enterprises - Holding entities (sociétés holdings) and financial enterprises where participations constitute the principal assets and revenue source — these may not omit participations disclosure from the notes (Art. 66, second sentence)
5. Components of the Annual Accounts (Comptes Annuels)
Under the 2002 Law, the annual accounts (comptes annuels) comprise three mandatory elements for all entities subject to the law:
- Bilan (balance sheet)
- Compte de profits et pertes (profit and loss account)
- Annexe (notes to the accounts)
Additionally, larger entities must prepare:
| Component | Legal basis | Who must prepare |
|---|---|---|
| Bilan + compte de P&P + annexe | 2002 Law Art. 34, 46, 65 | All entities subject to Art. 75 |
| Rapport de gestion (management report) | LSC Arts. 68–72 | Medium and large; exempt for micro and small |
| Rapport du réviseur d'entreprises agréé (auditor's report) | Audit Law 2016 | Medium and large; exempt for micro and small |
Note on cash flow statement: Unlike IFRS or Dutch GAAP, Luxembourg Lux GAAP does not require a cash flow statement (tableau des flux de trésorerie). It is optional and recommended for large entities; mandatory only for entities using IFRS (IAS 7).
Overriding principle — true and fair view (image fidèle): The annual accounts must give a true and fair view of the enterprise's assets, liabilities, financial position, and results. Where strict compliance with the law would not achieve a true and fair view, additional information must be provided in the notes (2002 Law Art. 26).
6. Balance Sheet (Bilan)
The balance sheet format is horizontal (assets on one side, capital/liabilities on the other), as prescribed by the RGD du 18 décembre 2015 implementing Art. 34 of the 2002 Law (transposing Annex III of EU Directive 2013/34/EU).
Asset side (ACTIF)
A. Frais d'établissement — Establishment costs (permitted for max. 5 years amortisation; must be explained in notes)
B. Actifs immobilisés (Fixed assets):
B.I. Immobilisations incorporelles (Intangible fixed assets): - Frais de développement (Development costs — research costs no longer capitalisable since the 2013 reform) - Concessions, brevets, licences, marques et droits similaires (Concessions, patents, licences, trademarks) - Acquired externally / Created internally - Fonds de commerce acquis à titre onéreux (Goodwill acquired for consideration) - Avances et immobilisations incorporelles en cours (Prepayments and intangibles in progress)
B.II. Immobilisations corporelles (Tangible fixed assets): - Terrains et constructions (Land and buildings) - Installations techniques et machines (Technical installations and machinery) - Autres installations, outillage et mobilier (Other equipment, tools and furniture) - Acomptes versés et immobilisations corporelles en cours (Prepayments and tangibles in progress)
B.III. Immobilisations financières (Financial fixed assets): - Parts dans des entreprises liées (Stakes in related enterprises) — PCN accounts 231–234 - Créances sur des entreprises liées (Receivables from related enterprises) - Parts dans des entreprises avec lesquelles il existe un lien de participation (Participating interests) - Créances sur des entreprises avec lien de participation - Valeurs mobilières immobilisées (Immobilised securities) — PCN account 235 - Prêts et créances immobilisées (Long-term loans and receivables) — PCN account 236 - Actions propres (Treasury shares) — PCN account 237
C. Actifs circulants (Current assets):
C.I. Stocks (Inventories) — PCN class 3: - Matières premières et consommables (Raw materials and consumables) - En-cours de production de biens/de services (Work-in-progress) - Produits finis et marchandises (Finished goods and merchandise) - Terrains et immeubles destinés à la vente (Land and buildings for resale) - Acomptes versés sur commandes (Prepayments on orders)
C.II. Créances (Receivables) — PCN class 4: - Créances résultant de ventes et prestations de services (Trade receivables) - Créances sur des entreprises liées - Autres créances (personnel, tax, social security receivables) - Acomptes versés sur commandes
For abbreviated balance sheets: receivables with residual duration > 1 year must be disclosed separately.
C.III. Valeurs mobilières (Marketable securities) — PCN account 50: - Including treasury shares/interests held as current assets
C.IV. Avoirs en banque, avoirs en compte de chèques postaux, chèques et encaisse (Bank balances, postal accounts, cash)
D. Comptes de régularisation — Accruals and prepayments (PCN account 48 debit)
Liability side (PASSIF)
A. Capitaux propres (Capital and reserves): - A.I. Capital souscrit (Subscribed capital) — PCN accounts 101–104 - A.II. Primes d'émission et primes assimilées (Share premiums) — PCN accounts 111–115 - A.III. Réserve de réévaluation (Revaluation reserve) — PCN class 12 - A.IV. Réserves (Reserves): - A.IV.1 Réserve légale (Legal reserve — 5% of annual net profit until 10% of share capital reached) - A.IV.2 Réserve pour actions ou parts propres (Reserve for own shares) - A.IV.3 Réserves statutaires (Statutory reserves) - A.IV.4 Autres réserves (Other reserves, including fair value reserves since 2013 reform) - A.V. Résultats reportés (Retained earnings/accumulated losses) — PCN account 141 - A.VI. Résultat de l'exercice (Profit/loss for the year) — PCN account 142 - A.VII. Acomptes sur dividendes (Interim dividends) — PCN account 15 - A.VIII. Subventions d'investissement (Investment grants) — PCN account 16
B. Provisions (Provisions for risks and charges) — PCN class 18: - Provisions pour pensions et obligations similaires (Pension provisions) - Provisions pour impôts (Tax provisions — current and deferred tax) - Autres provisions (Other provisions)
C. Dettes (Creditors/liabilities) — PCN classes 19, 44–47: - Emprunts obligataires — convertibles and non-convertibles (Debenture loans) - Dettes envers des établissements de crédit (Credit institution liabilities) - Avances reçues sur commandes en cours (Payments received on account) - Dettes sur achats et prestations de services (Trade creditors) — PCN account 44 - Dettes représentées par des effets de commerce à payer (Bills of exchange payable) - Dettes envers des entreprises liées — PCN account 45 - Dettes envers des entreprises avec lien de participation - Dettes fiscales et dettes envers les organismes de sécurité sociale — PCN account 46 - Autres dettes (Other creditors) — PCN account 47
For abbreviated balance sheets: debts with residual duration > 1 year must be disclosed separately.
D. Comptes de régularisation — Accruals (PCN account 48 credit)
Abbreviated balance sheet (Art. 35)
Small and micro enterprises may use an abbreviated balance sheet showing only the items preceded by capital letters (A, B, C, D) and Roman numerals (B.I, B.II, B.III, C.I, etc.), with the requirement to separately disclose receivables and debts with residual duration exceeding one year. Detailed sub-items within each group need not be disclosed publicly.
7. Profit and Loss Account (Compte de Profits et Pertes)
The P&L account format under Luxembourg law is a vertical list (by nature of charge/income), as prescribed by the RGD du 18 décembre 2015 implementing Art. 46 of the 2002 Law (transposing Annex V of EU Directive 2013/34/EU). The previous horizontal "account" format was eliminated by the Law of 30 July 2013 transposing the Directive.
Note: Exceptional items (produits et charges exceptionnels) were eliminated from the P&L by the 2013 reform. Items previously classified as exceptional must now be disclosed in the notes.
Full P&L line items (Art. 46)
| Line | Item |
|---|---|
| 1 | Chiffre d'affaires net (Net turnover) |
| 2 | Variation des stocks de produits finis et en-cours de fabrication (Change in inventories of finished goods and WIP) |
| 3 | Travaux effectués par l'entreprise pour elle-même et portés à l'actif (Own work capitalised) |
| 4 | Autres produits d'exploitation (Other operating income) |
| 5a | Matières premières et consommables (Raw materials and consumables) |
| 5b | Autres charges externes (Other external charges) |
| 6a | Salaires et traitements (Wages and salaries) |
| 6b | Charges sociales (Social security charges) |
| 6c | Autres frais de personnel (Other personnel costs) |
| 7a | Corrections de valeur sur frais d'établissement et sur immobilisations corporelles et incorporelles (Amortisation/depreciation on establishment costs and tangible/intangible fixed assets) |
| 7b | Corrections de valeur sur éléments de l'actif circulant (Value adjustments on current assets) |
| 8 | Autres charges d'exploitation (Other operating charges) |
| 9a | Revenus provenant de participations — entreprises liées (Income from participating interests — related enterprises) |
| 9b | Revenus provenant de participations — autres (Income from other participating interests) |
| 10 | Revenus provenant de valeurs mobilières et de créances de l'actif immobilisé (Income from other investments and loans in fixed assets) |
| 11a | Autres intérêts et produits assimilés — entreprises liées |
| 11b | Autres intérêts et produits assimilés — autres |
| 12 | Corrections de valeur sur immobilisations financières et valeurs mobilières de l'actif circulant |
| 13a | Intérêts et charges assimilées — entreprises liées |
| 13b | Intérêts et charges assimilées — autres |
| 14 | Impôt sur le résultat (Tax on profit) |
| 15 | Résultat après impôt |
| 16 | Autres impôts ne figurant pas sous les postes ci-dessus |
| 17 | Résultat de l'exercice (Profit or loss for the year) |
Abbreviated P&L (Art. 47)
Small and medium enterprises may use an abbreviated profit and loss account by grouping items 1, 2, 3, 4, 5a, and 5b into a single figure: - Positive: Produits bruts (gross revenues — net turnover plus other operating income less consumables/external charges) - Negative: Charges brutes (gross charges)
This means that small and medium enterprises effectively disclose only the gross margin, hiding the individual revenue and cost components. The abbreviated P&L need not be publicly filed for small enterprises (see Section 15).
8. Notes to the Accounts (Annexe)
The annexe is an integral part of the annual accounts. Under the 2002 Law (Arts. 65–66) and applicable Grand-Ducal Regulations, the following must be disclosed:
Mandatory disclosures
| Subject | Requirement |
|---|---|
| Accounting methods and valuation rules | Description of the principles, rules, and valuation methods applied (going concern, consistency, prudence, accruals basis); any changes in methods with explanation and quantified impact |
| Participations (Art. 65(1)2°) | For each holding ≥ 20% of capital, or entity with unlimited liability: name and registered office; fraction of capital held; equity and result from latest closed period; for unlimited liability: legal form. For non-published entities with 20–50% holding: name, office, capital fraction only. |
| Related-party transactions | Transactions with related enterprises and enterprises with participating interest links |
| Personnel numbers | Average number of full-time employees during the financial year |
| Director/manager remuneration | Amounts paid to members of administrative, managerial, and supervisory bodies |
| Off-balance-sheet commitments | Guarantees, contingent liabilities, financial commitments not in the balance sheet |
| Post-balance-sheet events | Significant events after financial year-end |
| Research and development | Where material |
| Treasury shares | Number, nominal value, and cost of own shares held |
| Non-recurring items | Significant items not arising from ordinary activities (formerly "exceptional items") — now disclosed in notes since 2013 reform |
| Deferred taxes | Optional disclosure under Lux GAAP classic; required under IFRS |
Abbreviated annexe — small company exemption (Art. 66)
Small enterprises may prepare an abbreviated annexe omitting the participations disclosure required by Art. 65(1)2°.
Important exception (Art. 66, second sentence): This dispensation does not apply where participations are significant for a true and fair view — specifically for holding companies and financial enterprises where participations are the principal assets and revenue source. Such entities must always include full participations disclosure regardless of size.
9. Management Report (Rapport de Gestion)
The rapport de gestion is governed primarily by Arts. 68, 68bis, and 72 LSC (for SA and similar entities) and corresponding provisions for other entity types.
Content requirements
The management report must provide a faithful account of the enterprise's development, results, and financial position, and must cover:
| Requirement | Detail |
|---|---|
| Business review | Balanced and comprehensive analysis of development and results during the financial year; financial and non-financial key performance indicators |
| Principal risks and uncertainties | Description of main risks facing the enterprise |
| Post-closing events | Significant events since the financial year-end |
| Future prospects | Expected future development of the enterprise (investments, financing, personnel) |
| Research and development | Activities during the year |
| Branches | Existence and location of branches |
| Financial instruments | Where relevant: objectives and policies for managing financial risk (price, credit, liquidity, cash flow) |
| For listed companies | Corporate governance statement; diversity policy; remuneration policy |
| For large PIEs (>500 employees) | Sustainability statement (under NFRD, pending full CSRD transposition — Bill 8370 submitted March 2024) |
Size-based exemptions
| Category | Obligation |
|---|---|
| Large | Full management report required, including non-financial performance indicators |
| Medium | Full management report required |
| Small | Completely exempt from preparing a management report |
| Micro | Completely exempt from preparing a management report |
10. Audit Requirements
Réviseur d'entreprises agréé (REA) — statutory auditor
The réviseur d'entreprises agréé (REA) is a qualified statutory auditor, member of the Institut des Réviseurs d'Entreprises (IRE) and approved by the CSSF (Commission de Surveillance du Secteur Financier). The REA performs the contrôle légal des comptes (statutory audit) and issues the rapport du réviseur d'entreprises agréé.
REA required for entities exceeding 2 of 3 of the following criteria for 2 consecutive financial years (i.e. medium and large entities):
| Threshold | Value (post-October 2024 RGD) |
|---|---|
| Balance sheet total | > €7,500,000 |
| Net turnover | > €15,000,000 |
| Average employees | > 50 |
Exempt from mandatory REA audit: Micro and small enterprises (below the above thresholds for 2 consecutive years).
Commissaire aux comptes — internal supervisory auditor
In addition to the REA for larger entities, Luxembourg law traditionally requires a commissaire aux comptes for certain entity types:
- SA: a commissaire aux comptes is traditionally required; may be a shareholder; no professional qualification required (though proposals in Bill 8286 would abolish this role)
- Sàrl with more than 60 shareholders: mandatory commissaire aux comptes if below the REA threshold
- Sàrl with ≤ 60 shareholders and below REA threshold: no mandatory auditor; voluntary contractual audit is possible
The commissaire aux comptes is not an independent professional auditor; they inspect the accounts and management but may not simultaneously exercise management functions.
PIE mandatory audit
All Organismes d'Intérêt Public (OIP / PIEs) are required to have their accounts audited by a REA, regardless of size. Special PIE audit requirements include (Art. 1(20) Audit Law 2016; EU Regulation 537/2014): - Audit committee mandatory (majority independent members; at least one financial expert) - Engagement quality control review before audit report issuance - Partner rotation rules - 70% cap on non-audit services fees - Annual independence confirmation to audit committee - CSSF quality assurance reviews every 3 years for PIE auditors
11. Accounting Standards: Lux GAAP and IFRS
Luxembourg GAAP (Lux GAAP)
Luxembourg GAAP is based on the 2002 Law and the interpretive avis (opinions) of the Commission des Normes Comptables (CNC). The CNC does not issue comprehensive stand-alone accounting standards in the manner of the IASB or the Dutch RJ; instead, it issues targeted Q&A guidance and opinions interpreting specific articles of the 2002 Law. Key CNC publications include Q&A 19/017 (consolidated accounts filing deadline), 22/028 (consolidation exemption small groups), 24/034, 25/035, and 25/036.
Three Lux GAAP variants are available (Guichet.lu, Art. 27 LRCS):
| Variant | Key features |
|---|---|
| Classic Lux GAAP | Historical cost basis; strict prudence principle: "seuls les bénéfices réalisés à la date de clôture du bilan peuvent y être inscrits" — only realised profits may be recognised at the balance sheet date; no substance-over-form obligation |
| Lux GAAP with Fair Value Option | Adds substance-over-form and fair value measurement (juste valeur) for financial instruments; authorised since the Law of 30 July 2013 transposing Directive 2013/34/EU |
| IFRS (as adopted by EU) | Full IFRS application; see below |
Fundamental accounting principles (2002 Law): - Going concern (continuité d'exploitation) - Consistency (permanence des méthodes) - Prudence (prudence) - Accruals basis (rattachement des charges et produits à l'exercice) - True and fair view (image fidèle) — overriding principle
IFRS as adopted by the EU
Mandatory for: Consolidated accounts of Luxembourg entities with securities admitted to trading on an EU regulated market — required by IAS Regulation (EC) 1606/2002 (effective from 1 January 2005).
Voluntary for: Any entity subject to the 2002 Law may optionally prepare individual and/or consolidated accounts under EU-endorsed IFRS since the Law of 10 December 2010. Entities using IFRS are exempt from the PCN requirement.
Restriction on distributions: Entities using IFRS for statutory accounts cannot distribute unrealised gains arising from IFRS revaluation (fair value uplifts). A transfer to a non-distributable reserve is required.
Individual derogations (Art. 27 LRCS)
An enterprise may apply to the Justice Minister for an individual derogation from specific provisions of the 2002 Law, provided the derogation is compatible with EU Directive 2013/34/EU and IAS Regulation 1606/2002/CE. The CNC provides an opinion on each application; processing takes 4–8 weeks for complete files.
12. Plan Comptable Normalisé (PCN)
The Plan Comptable Normalisé (PCN) is Luxembourg's standardised chart of accounts, established by the Grand-Ducal Regulation of 12 September 2019 (PCN 2020, effective for financial years beginning 1 January 2020), replacing the previous PCN 2009 (Grand-Ducal Regulation of 10 June 2009). It implements Arts. 12 and 13 of the Code de Commerce and the 2002 Law.
Class structure (7 classes)
| Class | Name | Content |
|---|---|---|
| Class 1 | Capitaux propres, provisions et dettes financières | Share capital, reserves, provisions, financial liabilities |
| Class 2 | Frais d'établissement et actifs immobilisés | Establishment costs, intangible, tangible, and financial fixed assets |
| Class 3 | Comptes de stocks et en-cours | Inventories and work-in-progress |
| Class 4 | Comptes de tiers | Receivables and payables (debtors and creditors) |
| Class 5 | Comptes financiers | Cash, bank accounts, marketable securities |
| Class 6 | Comptes de charges | All expense items |
| Class 7 | Comptes de produits | All income/revenue items |
Classes 1–5 feed into the balance sheet; Classes 6–7 feed into the P&L. Each PCN account is classified as either a grouping account (R) (which subdivides into lower-level accounts) or an imputation account (I) (the lowest level where individual transactions are recorded). Enterprises may create internal subdivisions.
Entities required to use the PCN
The PCN is mandatory for: - SA, Sàrl, SCA, SE, cooperatives - SENC and SCS with annual turnover > €100,000 excl. VAT - GIE and GEIE - Luxembourg branches of foreign commercial companies, foreign sole proprietors, GEIE, GIE - Soparfis (financial holding companies) and other holding structures incorporated as SA/Sàrl
Entities exempt from the PCN
- SENC and SCS with annual turnover ≤ €100,000 excl. VAT
- SCSp regardless of turnover
- Credit institutions, insurance companies, SEPCAV, SICAV (use CSSF/CAA sector-specific frameworks)
- Entities using IFRS
- Temporary commercial associations and associations en participation
eCDF (Collecte des Données Financières)
The eCDF platform (ecdf.b2g.etat.lu) is the Luxembourg State's electronic data collection platform for financial data. Companies must prepare and validate their annual accounts on eCDF before submitting to the RCS. The platform provides standardised input forms corresponding to the PCN and balance sheet/P&L schemas, enabling digital data extraction and statistical processing.
13. Filing Obligations: Deadlines, Languages and eCDF/RESA
Where to file
All annual accounts must be deposited with the Registre de Commerce et des Sociétés (RCS) via the LBR electronic filing platform (lbr.lu/mjrcs-web-front/). Authentication requires a LuxTrust certificate. The filing system is linked to the eCDF platform for data validation.
Deadlines
| Event | Deadline | Legal basis |
|---|---|---|
| General assembly approves accounts | Within 6 months after financial year-end | LSC Art. 1500-2 pt.2° |
| Filing with RCS after approval | Within 1 month after approval | 2002 Law Art. 19-1 (LRCS) |
| Maximum outer deadline | 7 months after financial year-end | Combined Arts. 1500-2 and 19-1 |
Example: FY ending 31 December → accounts approved by 30 June → filed with RCS by 31 July.
Consolidated accounts
The same 7-month deadline applies to consolidated accounts (Arts. 1770-1 and 100-13 LSC; confirmed by CNC Q&A 19/017).
Languages permitted
Annual accounts may be filed in French, German, or English (confirmed by Guichet.lu).
Documents required for filing
| Document | Required for |
|---|---|
| Balance sheet (bilan) | All |
| Profit and loss account | All (abbreviated for small) |
| Balance des comptes (trial balance per PCN) | PCN-obligated entities |
| Notes (annexe) in PDF/A format | All |
| Management report (rapport de gestion) in PDF/A | Medium and large |
| Auditor's report (rapport du réviseur) in PDF/A | Medium, large, and PIEs |
| For non-PCN entities: full annual financial statements | IFRS users and exempt entities |
Filing fees
| Filing timing | Fee |
|---|---|
| On time (within 7 months of year-end) | €19 |
| Filed in 8th month | +€50 surcharge |
| Filed in 9th–11th month | +€200 surcharge |
| Filed from 12th month onwards | +€500 surcharge |
Surcharges are considered deductible professional expenses. Fees are payable electronically; monthly invoicing is available for regular filers.
Publication via RESA
Accounts filed with the RCS are published in the RESA (Recueil Électronique des Sociétés et Associations) on the filing date or within 15 days (at the filer's choice). Publication in RESA constitutes official public notice. SENC, SCS, sole proprietors, and GIE benefit from restricted publication (limited public disclosure).
14. Consolidated Accounts and Group Exemptions
Obligation to prepare consolidated accounts (Art. 1711-1 LSC)
A parent company that controls one or more subsidiaries must prepare consolidated accounts (comptes consolidés) and a consolidated management report, if the parent is structured as an SA, SE, SCA, Sàrl, or similar capital company. Control is defined as holding the majority of voting rights, having the power to appoint or remove the majority of board members, or controlling through shareholder agreements.
The consolidated accounts must include: - Consolidated balance sheet - Consolidated profit and loss account - Notes to consolidated accounts - Consolidated management report - Auditor's report (REA) - For large PIEs with > 500 employees: non-financial statement / sustainability statement
Small group exemption (Art. 1711-4 LSC, amended by RGD 25 October 2024)
A parent company is exempt from preparing consolidated accounts if the group (on a consolidated basis) does not exceed 2 of 3 of the following criteria for 2 consecutive financial years:
| Criterion | Threshold (post-October 2024) |
|---|---|
| Consolidated balance sheet total | ≤ €25,000,000 |
| Consolidated net turnover | ≤ €50,000,000 |
| Average number of employees | ≤ 250 |
Previous small group thresholds: €20,000,000 / €40,000,000 / 250 employees.
Exception: The small group exemption is not available to groups with securities admitted to trading on regulated markets.
Intermediate holding exemption (Arts. 1711-5 to 1711-7 LSC)
An intermediate parent company (sub-consolidating entity) may be exempt from preparing consolidated accounts if: - Its own parent (domiciled in the EU/EEA or an equivalent third country) prepares and publishes consolidated accounts that cover the Luxembourg intermediate parent's group - Those accounts comply with EU Directive 2013/34/EU or IFRS as adopted by the EU - The consolidated accounts are filed at the RCS within 7 months of the year-end - Shareholder consent conditions are met
Grounds for exclusion from consolidation (Art. 1711-8 LSC)
A subsidiary may be excluded from consolidation where: - It is individually immaterial to the true and fair view of the group - Severe long-term restrictions prevent the parent from exercising its rights over the subsidiary's assets or management - Disproportionate cost or delay would be required to obtain the necessary information - The subsidiary is held exclusively for subsequent disposal (Art. 1711-8 para. 3 pt. 3° — interpreted by CNC Q&A 25/036, relevant to alternative investment fund structures with 10–15 year holding periods)
Where all subsidiaries can be excluded under Art. 1711-8, the parent is also exempt from consolidation (Art. 1711-9 pt. 2°).
No Art. 403 equivalent in Luxembourg law
Unlike the Dutch system (BW2 Art. 403), Luxembourg law has no parent-guarantee mechanism that would allow a subsidiary to omit its own annual account filing in exchange for a parental joint and several liability declaration. Each Luxembourg entity meeting the filing criteria must file its own annual accounts. The only relevant relief is the size-based simplified filing regime (abbreviated accounts for small/micro entities) and the specific exemptions for SCSp and low-turnover partnerships.
15. Public Availability and Simplified Filing by Size Category
What each size category files publicly
| Category | Balance sheet | P&L account | Notes (annexe) | Management report | Auditor's report |
|---|---|---|---|---|---|
| Micro | Abbreviated | Confidential (not filed publicly) | Very limited | Not required | Not required |
| Small | Abbreviated | Abbreviated (not filed publicly) | Abbreviated (Art. 66 — omit participations) | Not required | Not required |
| Medium | Full | Abbreviated (Art. 47) | Abbreviated | Required | Required (REA) |
| Large | Full | Full | Full | Required | Required (REA) |
Micro-entities may keep their P&L entirely confidential — it is submitted to the RCS for regulatory purposes but is not accessible to the public.
RESA access
Filed accounts are publicly searchable via the RESA portal (resa.lu). Users can obtain official copies of filed documents; charges apply for certified copies. Basic filing status information (date of filing, entity name) is accessible free of charge.
16. Special Rules by Entity Type
| Entity | Audit | PCN | Filing threshold | Notable features |
|---|---|---|---|---|
| SA | Commissaire aux comptes traditionally; REA if medium/large; always REA if PIE | Mandatory | Unconditional | Arts. 68–72 LSC govern management report; general assembly within 6 months |
| Sàrl | Commissaire aux comptes if >60 shareholders and below REA threshold; REA if medium/large | Mandatory | Unconditional | Most common entity (~179,000 in Dato Capital DB) |
| SCA | REA if medium/large | Mandatory | Unconditional | Supervisory board with commissaires traditionally required |
| SE | REA if medium/large | Mandatory | Unconditional | Same rules as SA |
| SCS | Only if turnover > €100k | Mandatory only if > €100k | > €100k turnover | Partnership — restricted publication |
| SENC | Only if turnover > €100k | Mandatory only if > €100k | > €100k turnover | All partners unlimited liability |
| SCSp | No (unless regulated) | Exempt regardless of turnover | Balance des comptes only (trial balance) | No legal personality; no published annual accounts; SICAR/FIAR/regulated exceptions apply |
| Cooperative (SC) | REA if medium/large | Mandatory | Unconditional | — |
| GIE / GEIE | As applicable | Mandatory | Unconditional | Restricted publication for GIE |
17. Sanctions for Non-Compliance
Administrative surcharges (RCS)
Late filing of annual accounts triggers automatic progressive surcharges added to the filing fee: - 8th month after year-end: +€50 - 9th–11th month: +€200 - From 12th month onwards: +€500
These surcharges are deductible as professional expenses.
Criminal penalties
Failure to prepare or file annual accounts in accordance with the 2002 Law and LSC exposes directors and managers to: - Criminal fine: €500 to €25,000 - Imprisonment: 1 to 2 years (in cases involving fraudulent intent or deliberate non-compliance)
Civil and judicial consequences
- Court-ordered investigation of the company's financial affairs
- Judicial dissolution proceedings: persistent failure to approve or file annual accounts constitutes a serious breach of commercial company legislation, entitling the Public Prosecutor to initiate dissolution proceedings
- Daily penalty payments (astreintes) — up to €40 per day until compliance
- Potential deregistration / strike-off from the RCS
- Personal civil liability for directors and managers for failing to maintain accounts or file required documents under the 2002 Law and LSC
18. Key Figures Summary
| Parameter | Value | Legal basis |
|---|---|---|
| Micro threshold (balance sheet / turnover / employees) | €450,000 / €900,000 / ≤ 10 | 2002 Law Art. 35; RGD 25 Oct. 2024 |
| Small threshold (balance sheet / turnover / employees) | €7,500,000 / €15,000,000 / ≤ 50 | 2002 Law Arts. 35, 47; RGD 25 Oct. 2024 |
| Medium threshold (balance sheet / turnover / employees) | €25,000,000 / €50,000,000 / ≤ 250 | 2002 Law Arts. 35, 47; RGD 25 Oct. 2024 |
| Classification rule | 2 of 3 criteria, 2 consecutive financial years | 2002 Law Arts. 35, 47 |
| General assembly approval deadline | 6 months after year-end | LSC Art. 1500-2 pt.2° |
| Filing deadline after approval | 1 month | 2002 Law Art. 19-1 |
| Maximum outer filing deadline | 7 months after year-end | Combined Art. 1500-2 / Art. 19-1 |
| Permitted filing languages | French, German, English | 2002 Law / Guichet.lu |
| On-time filing fee | €19 | RCS tariff |
| Late surcharge (8th month) | +€50 | RCS tariff |
| Late surcharge (9th–11th month) | +€200 | RCS tariff |
| Late surcharge (12th month+) | +€500 | RCS tariff |
| PCN effective date | FY beginning 1 January 2020 | RGD 12 Sept. 2019 |
| Criminal fine for non-filing | €500 to €25,000 | 2002 Law / LSC |
| Small group exemption threshold (consolidated) | €25,000,000 / €50,000,000 / 250 | LSC Art. 1711-4; RGD 25 Oct. 2024 |
| Sàrls in Dato Capital database | ~179,000 | Dato Capital |
| SAs in Dato Capital database | ~117,000 | Dato Capital |
Sources
Luxembourg Law
- Loi du 19 décembre 2002 (core accounting law — 2002 Law / LRCS): legilux.public.lu/eli/etat/leg/loi/2002/12/19/n3/jo
- Loi du 10 août 1915 sur les sociétés commerciales (LSC): legilux.public.lu/eli/etat/leg/loi/1915/08/10/n1/jo
- Loi du 23 juillet 2016 relative à la profession de l'audit (Audit Law): data.legilux.public.lu/filestore/eli/etat/leg/loi/2016/07/23/n8/jo/fr/html/eli-etat-leg-loi-2016-07-23-n8-jo-fr-html.html
- RGD du 12 septembre 2019 (Plan Comptable Normalisé 2020): data.legilux.public.lu/filestore/eli/etat/leg/rgd/2019/09/12/a631/jo/fr/html
Official Luxembourg Portals
- Guichet.lu — filing of annual accounts: guichet.public.lu/fr/entreprises/gestion-juridique-comptabilite/registre-commerce/depots-publications/depot-comptes-annuels.html
- Guichet.lu — accounting obligations: guichet.public.lu/fr/entreprises/gestion-juridique-comptabilite/comptable/enregistrement/obligations-comptables.html
- Guichet.lu — methods for establishing annual accounts: guichet.public.lu/fr/entreprises/gestion-juridique-comptabilite/comptable/enregistrement/methodes-etablissement-comptes-annuels.html
- Guichet.lu — consolidated accounts: guichet.public.lu/en/entreprises/gestion-juridique-comptabilite/registre-commerce/depots-publications/comptes-consolides-entreprises.html
- RCS / LBR filing portal: lbr.lu/mjrcs-web-front
- RESA (electronic register): resa.lu
- eCDF platform: ecdf.b2g.etat.lu
- Justice Ministry — accounting derogations: mj.gouvernement.lu/fr/service-citoyens/derogation-matiere-comptable.html
Commission des Normes Comptables (CNC)
- CNC Luxembourg: cnc.lu
- PCN guidance: cnc.lu/fr/plan-comptable
- CNC Q&A 19/017 (consolidated accounts deadline): cnc.lu/publications/doctrine
- CNC Q&A 22/028 (small group consolidation exemption): cssf.lu/en/2023/02/qa-cnc-22-028
- CNC Q&A 25/036 (Art. 1711-8 interpretation): cnc.lu/publications/doctrine
CSSF
- CSSF — audit profession access: cssf.lu/en/access-audit-profession
- CSSF — PIE specific requirements: cssf.lu/en/specific-requirements-for-public-interest-entities
- CSSF — investment funds as PIEs (2016): cssf.lu/en/2016/12/investment-funds-public-interest-entities-pies
- CSSF — Grand-Ducal Regulation 25 October 2024 (new size thresholds): cssf.lu/en/2024/12
IRE (Institut des Réviseurs d'Entreprises)
- IRE Luxembourg: ire.lu
EU Legislation
- EU Accounting Directive 2013/34/EU: eur-lex.europa.eu
- IAS Regulation (EC) 1606/2002: eur-lex.europa.eu
- Commission Delegated Directive (EU) 2023/2775: eur-lex.europa.eu
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