Set Up a Company in the Forestry Sector in Luxembourg

Luxembourg is one of the richest countries in Europe if taking into account its natural resources. One of these resources is its forests. Approximately 87,000 hectares, or better said more than 33% of Luxembourg’s territory is covered by forests. These are owned by the state or by private individuals.

Investors interested in setting up a forestry business in Luxembourg must comply with various regulations imposed by the government. Our lawyers in Luxembourg can offer information on the law issued in 2005 which provides for the sale of wood and other materials collected from forests in the Grand Duchy.

Registering a forestry business in Luxembourg

Foreign investors who want to open a company in Luxembourg in order to exploit forests must first choose and register one of the business forms available under the Commercial Code. Setting up a company in the forestry sector implies preparing the company registration documents, depositing the share capital corresponding to the type of structure selected and filing the incorporation paperwork with the Trade Register.

Luxembourg forestry companies can lease or buy land plots from the state in order to exploit them. Our law firm in Luxembourg can offer more information on the legislation related to exploiting state-owned forests.

Types of activities undertaken by forestry companies in Luxembourg

Investors opening companies in the forestry industry in Luxembourg can undertake various activities. Among these are:

• -          planting various types of trees;
• -          cutting trees;
• -          processing wood;
• -          setting up wood-processing factories;
• -          selling wood materials;
• -          exporting wood and wood-related products.

It should be noted that most of the wood products leaving forests in Luxembourg are destined for export. No matter the type of activities carried out by Luxembourg forestry businesses must be authorized by the Nature and Forests Administration within the Ministry of Environment.

Owners of private forests in Luxembourg can also enter the private forest owners association enabled in 2008.

If you are interested in starting a business in the forestry sector in Luxembourg, please contact our local lawyers. We can also help you with the registration process of a forestry company.