Power of Attorney in Luxembourg - Legal Support for Local and Foreign Clients
Power of Attorney in LuxembourgUpdated on Tuesday 01st August 2023
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The power of attorney (POA) is a document authenticated by a public notary and that can be used for representation in various situations. This type of paper is often used in Luxembourg but also around the world by people who need proxies to complete one or more tasks on their behalf.
There are several types of powers of attorney that can be issued in Luxembourg, our lawyers will take you through them. We are also at your disposal with various services that involve using such documents for representation.
Principal and agent in a power of attorney
The power of attorney is a document that has two main participants:
- the principal or donor who is the person requesting the drafting of the POA in Luxembourg and who establishes its content from a duration and purpose points of view;
- the attorney-in-fact, representative or agent who will carry out the tasks/activities set out in the Luxembourg POA, in accordance with the given instructions.
It is important to note that in order to be valid, a power of attorney in Luxembourg must be authenticated by a public notary.
Our lawyers in Luxembourg can also help you draft such documents and have them authorized.
Types of power of attorneys in Luxembourg
The Civil Code is the main law that provides for granting authorization for representation to third parties through a Luxembourg power of attorney. In fact, such a document can be divided into several categories – based on duration, capacity to act, and tasks that can be completed through it.
From these points of view, here are the types of powers of attorney available in the Grand Duchy:
- the simple power of attorney can be issued one time for a specific matter to be handled – once completed, the document ceases to have legal effect;
- the durable power of attorney enables the agent to represent the principal in one or more matters including after the latter passes away;
- the limited power of attorney establishes the length through which the agent or attorney can represent the principal;
- the unlimited POA which does not a expiration date;
- the specific power of attorney which is issued for certain operation only, such as opening a bank account in Luxembourg or even buying a property in the Grand Duchy.
Another type of power of attorney in Luxembourg which is often used by investors and businesspeople is the financial one. It is employed in the investment sector where the trading agent can manage portfolios and accounts on behalf of their holders.
Who can grant a power of attorney in Luxembourg?
The power of attorney can be granted by natural persons or companies. This also applies to the representative who can be a person or a legal entity.
Luxembourg POAs are granted by family members to other relatives they trust or to their lawyers for the latter to handle matters like:
- representing them in the relations with various authorities;
- managing bank or retirement accounts;
- distributing their estate after their passing away, as instructed in the will;
- making medical decisions on their behalf.
In business matter, the power of attorney is a very valuable document as it can be used in all that has to do with opening a company in Luxembourg. From this point of view, you can rely on our law firm for representation.
We are also at your service with immigration services in Luxembourg.
How many companies operate in Luxembourg?
Speaking of powers of attorney being used to set up businesses in Luxembourg, here are some statistics on the number of enterprises operating in the Grand Duchy:
- the total number of non-financial small and medium-sized companies at the beginning of 2023 was 40,400;
- out of these, 35,509 were micro-enterprises with less than 9 employees;
- the number of businesses with 10 to 49 employees was 4,036;
- there were also 815 medium-sized enterprises with 50 to 249 workers.
If you want a power of attorney to set up a business or for any other purpose, please contact our Luxembourg lawyers. You can also get in touch with us if you want to immigrate to Luxembourg.