Set Up a Business for Sale of Motor Vehicles in Luxembourg

Luxembourg, one of the smallest countries in Europe, is characterized by a powerful economy and a developed financial industry. Those who want to open companies here will benefit from regulations which comply with the highest standards imposed by the European Union and European Council, the first one having its headquarters here.

Those who want to step away from the financial industry can open other types of companies which cater to the needs of the population, such as Luxembourg businesses for selling motor vehicles.

If you plan on setting up a company for selling motor vehicles, we invite you to discuss your options with our lawyers in Luxembourg who specialize in assisting foreign investors interested in doing business in this country.

Registering a business for selling motor vehicles in Luxembourg

The first and most important step for opening a company which sells motor vehicles in Luxembourg is to register a business with the Companies Registrar. The limited liability company is a suitable business form, given that this type of business is usually a medium-sized enterprise.

Our law firm in Luxembourg can help foreign investors who want to open a business for selling motor vehicles with the following services:

• -          assistance in drafting the documents needed to be filed with the Trade Register;
• -          assistance in registering for taxation and VAT and obtaining an EORI number;
• -          guidance on the import-export procedure related to motor vehicles;
• -          business consulting related to improving the business’ outlook.

Among the important steps for starting a company for selling automobiles is obtaining an EORI number. This step is required to be able to import or export motor vehicles to other European Union member states easier.

Considering most of the vehicles sold in Luxembourg are imported, the EORI number is very important in order to deliver the automobiles to clients in the shortest time possible.

Other considerations for selling motor vehicles in Luxembourg

Most of the times, Luxembourg companies selling various types of vehicles must import them from the producers directly or through the subsidiaries or branches established in Luxembourg or in other neighboring countries. For this purpose, the import procedures must be completed following specific procedures.

The vehicles must have conformity certificates and other documents which attest their legitimacy, among which a photo of the manufacturer’s plate and a sticker which provides for the vehicle to be driven on the road. This applies to companies selling new or second-hand cars in Luxembourg.

All cars sold by a car dealership in Luxembourg must be accompanied by a sale contract which will be used for registering the vehicles with the Road Transport Authority in the Grand Duchy. We remind that it is the buyer’s duty to register the vehicle.

The certificate of conformity when selling motor vehicles in Luxembourg

Under the European Council’s regulations, all goods imported from outside the EU must bear the EC conformity stamp. This also applies to companies selling cars and other types of auto vehicles in Luxembourg. It is the car dealership’s duty to import only motor vehicles which have the documents which attest the conformity with EC’s regulations.

Contracts when selling vehicles in Luxembourg

All Luxembourg companies selling motor vehicles are required to draft the sale-purchase contract which must contain:

• -          information about the company (legal name and address) and the good to be sold;
• -          information about the price of the vehicle (in the case of EU transactions, the VAT needs to be stipulated in the contract even if it is not charged);
• -          information about the warranty of the motor vehicle sold by the company;
• -          information about the vehicle (identification series, the make and the model of the car).

This information should be comprised no matter the type of motor vehicle sold.

Another aspect which should be noted by companies selling motor vehicles in Luxembourg is that the sale contracts can be concluded with natural persons or corporate entities, case in which slight differences about the warranty of the goods can appear. The contract must be dated and signed by both parties.

There are various types of motor vehicles which can be sold by companies in Luxembourg, including motorbikes and vehicles for passenger transportation, therefore starting such a business here can be quite successful.

If you decide you want to open a business for selling various types of motor vehicles in Luxembourg, do not hesitate to contact us for assistance with the most important steps of the incorporation of your business. You can also rely on our Luxembourg lawyers if you want to set up other types of companies.