Entrust your accounting to certified experts who master Luxembourg regulations (PCN 2020, eCDF, RCS). We ensure complete compliance while optimizing your tax situation and financial performance.
Legal accounting obligations for Luxembourg companies
Every company incorporated in Luxembourg must maintain proper accounting records according to the law of 19 December 2002. Understanding these requirements helps avoid penalties and ensure smooth operations.
Complex regulatory framework
Luxembourg's regulatory environment requires accounting expertise that goes beyond basic bookkeeping. With over 20 years serving the Grand Duchy's business community, our chartered accountants combine deep technical knowledge with practical experience across diverse industries.
The accounting landscape has evolved with the PCN 2020 standard chart of accounts and mandatory eCDF electronic filing. These sit alongside the law of 18 December 2015 on annual and consolidated accounts and the framework around the RCS from the law of 19 December 2002, creating a comprehensive set of obligations for entities operating in Luxembourg. Depending on size, structure, and activities, each company must apply specific rules and thresholds.
Our approach integrates compliance with strategic financial advisory so your accounting function supports growth while meeting Luxembourg GAAP. Whether you're establishing a new entity through our company formation services (including SARL, SARL-S, or SAS structures), running ongoing operations, or planning expansion, professional accounting services provide a solid foundation for sustainable success in Luxembourg.
Fundamental accounting requirements
All Luxembourg companies, regardless of size, must keep double-entry books with chronological, complete, and timely entries and retain supporting documents for every transaction. This includes establishing annual accounts comprising at minimum a balance sheet and profit & loss statement, and ensuring all accounting records are kept for a period of ten years.
These requirements form the foundation of Luxembourg's accounting regulatory framework and apply universally to all registered entities.
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Plan Comptable Normalisé (PCN): Understanding your obligations
The PCN 2020 standardizes Luxembourg financial reporting with mandatory eCDF electronic filing
Companies subject to PCN requirements
The Plan Comptable Normalisé, updated in 2020 with the introduction of eCDF electronic filing, applies to most commercial companies in Luxembourg. Companies required to follow PCN include:
- Sociétés Anonymes (SA)
- Sociétés à responsabilité limitée (SARL)
- Sociétés en commandite par actions (SCA)
- Sociétés par actions simplifiées (SAS)
- These entities must prepare accounts according to the standardized chart
Entities not subject to PCN requirements
Certain entities are not subject to PCN or benefit from simplified accounting obligations. The €100,000 excl. VAT threshold applies to determine PCN exemption.
- Individual traders < €100,000 excl. VAT
- General partnerships (SNC) < €100,000 excl. VAT
- Special limited partnerships (SCSp) < €100,000 excl. VAT
- Civil companies not engaged in commercial activities
- Branches of foreign companies (modified requirements)
PCN 2020 and eCDF electronic filing
The PCN 2020 introduces enhanced digital requirements through the electronic Common Data Format (eCDF), which standardizes financial reporting across Luxembourg.
- Mandatory electronic filing via eCDF platform
- PCN format validation before RCS filing
- Standardization of financial reporting
- Exemption only for authorized IFRS companies
Company size categories
Luxembourg law classifies companies into 3 categories with specific obligations. Must not exceed 2 of 3 criteria for 2 years to maintain classification.
- SMALL: Balance ≤€7.5M, Turnover ≤€15M, ≤50 employees
- Benefits: Abridged balance sheet, simplified P&L, no audit
- MEDIUM: Balance ≤€25M, Turnover ≤€50M, ≤250 employees
- Obligations: Complete statements, mandatory audit
- LARGE: Balance >€25M, Turnover >€50M, >250 employees
- Full compliance with all requirements
PCN 2020 and eCDF electronic filing requirements
The implementation of PCN 2020 represents a significant modernization of Luxembourg's accounting framework.
- Technical requirements for eCDF filing
- The eCDF system requires companies to structure their financial data according to a specific XML schema that ensures consistency across all filings. This includes:
- Using standardized account codes from the PCN 2020 chart of accounts
- Applying prescribed calculation formulas for key financial indicators
- Clear indication of the currency used with appropriate precision
- Including structured data about legal form, registered office, and financial year
- Preparation and validation process
- Before submission, companies must validate their eCDF files through the eCDF platform of CTIE (Centre des Technologies de l'Information de l'État) or via XML transfer according to the official schema. This validation checks for:
- Technical compliance with the official XML schema
- Mathematical consistency between related figures
- Completeness of mandatory fields
- Our accounting team manages the entire eCDF preparation process, from initial data structuring to validation on the CTIE platform, then online filing with the RCS, ensuring technical compliance while maintaining accuracy.
Critical deadlines and administrative sanctions
Meet legal deadlines to avoid financial penalties and administrative consequences
- 📅 Filing deadlines timeline to avoid sanctions
- 1. Year-end closing: Finalize accounting records and prepare draft financial statements
- 2. Within 6 months after year-end: AGM must approve accounts (June 30 for December 31 closing)
- 3. Within 1 month after AGM: File approved annual accounts with RCS
- ⚠️ July 31 (for December year-end): Absolute deadline for RCS filing
- 💶 Administrative and financial sanctions
- 8th month after year-end: €50
- 9th-11th month: €200
- 12th month onwards: €500
- Beyond penalties: Publication on non-compliant companies lists, possible criminal penalties for directors, possible judicial dissolution
Frequently asked questions about accounting in Luxembourg
Essential information for managing your company's accounting obligations
What are the mandatory accounting deadlines for Luxembourg companies? +
Luxembourg companies must hold their Annual General Meeting within 6 months after year-end to approve accounts. Following approval, companies have 1 month to file with the RCS. For December year-ends, this means 31 July is the absolute deadline. Late filing incurs penalties starting at €50 and escalating to €500.
Which companies need to follow PCN 2020 standards? +
All commercial companies including SA, SARL, SCA, and SE must follow PCN 2020 and use eCDF electronic filing. Sole proprietorships with turnover below €100,000 and civil companies may have simplified requirements. However, all entities must maintain sufficient accounting records for tax compliance.
How do I know if my company needs a statutory audit? +
Statutory audits are mandatory for medium and large companies. Your company needs an audit if it exceeds 2 of 3 thresholds for two consecutive years: €7.5M balance sheet, €15M turnover, or 50 employees for small companies. Small companies are generally exempt unless they are public interest entities.
What accounting software is recommended for Luxembourg compliance? +
Professional accounting in Luxembourg typically uses Horus (AI-supported with full PCN 2020 integration), Bob 50 (advanced multi-entity management), or Odoo (cloud-based modular platform). All support the standardized chart of accounts, automated VAT calculations, and direct eCDF filing required by Luxembourg regulations.
Can I change accounting providers during the fiscal year? +
Yes, you can change accounting providers at any time. The transition process involves transferring accounting records, ensuring continuity of bookkeeping, and coordinating with tax authorities if needed. Professional providers manage this transition seamlessly to avoid disruption to your operations or compliance obligations.
What documents do I need to provide to my accountant regularly? +
Essential documents include bank statements, sales and purchase invoices, payroll records, expense receipts, and contracts affecting the company's finances. Digital document management systems facilitate efficient sharing and ensure all transactions are properly recorded and supported for audit purposes.