Domiciliation activity for business centres or co-working spaces

Given the significant development of domiciliation activities and the growing interest for business centres and co-working spaces in Luxembourg, the CSSF has recently clarified its view on domiciliation activities with respect to entities offering such services (see CSSF Press Release of 23 November 2021, updated on 17 December 2021).

The CSSF recalls that the offering of a head office or a commercial or professional address to a company when the latter carries out its activities within the framework of its corporate purpose and the provision of any service related to these activities (e.g. mail management, incoming calls handling or welcoming visitors) is considered as a company domiciliation activity within the meaning of Article 1 of the Law of 31 May 1999 governing the domiciliation of companies (“1999 Law”).

The CSSF restates that members of the regulated professions referred to in Article 1 of the 1999 Law, other than specialised PFS authorised as corporate domiciliation agents in accordance with Article 28-9 of the amended Law of 5 April 1993 on the financial sector, are exclusively entitled to domicile companies for which they provide professional services.

However, and in accordance with the administrative practice of the CSSF, the renting of a closed and private office to a company where it establishes its head office is, in principle, not to be considered as a domiciliation activity, provided that it is a genuine rental, and if no other services are provided to that company.

Moreover, the CSSF considers that incubators providing services as part of the support to start-ups which are in the development phase of an innovative activity are not carrying out a domiciliation activity within the meaning of the 1999 Law.