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Luxembourg

Open a company in Luxembourg

Why open a company in Luxembourg?

The world’s wealthiest country by GDP and one of the smallest in size, Luxembourg provides a unique low-tax environment for international investors. The country is widely used in corporate structuring for cross border transactions, but due to its place in Europe’s political environment it is constantly adapting its tax legislation, to avoid adverse conflict with the tax authorities of other EU countries. Due to its progressive and adaptive approach, Luxembourg is, and will remain, a beneficial country for international business structuring.

Is Luxembourg a low-tax environment for everyone?

Not at all – purposely the tax benefits in Luxembourg are carefully structured to ensure minimal disruption with other EU countries. In many ways it is a high-tax country – corporate income tax is 31%, individual tax rates are higher and there’s a wealth tax on top. On the face of it, the corporate structure in Luxembourg is similar to that of most other EU states, with most companies adopting the usual joint stock or limited liability formats. However within this standard structure is a strictly-defined class of holding company. Qualify for this – and corporate income tax can sink to below 1%.

What are the most common types of company formation in Luxembourg?

  • Societé Anonyme (SA): joint stock company, minimum share capital €30,000, minimum of three directors, a registered office in Luxembourg, and audited accounts if the company exceeds a certain size
  • Société à Responsabilité Limitée (SARL): limited liability company, minimum share capital of €12.400, no more than 40 shareholders; minimum of three directors, a registered office in Luxembourg, and audited accounts subject to size

How can I set up a low-tax company in Luxembourg?

There are two main kinds of low-tax business entity – the 1929 Holding company and the Soparfi. In fact, it would be more accurate to define a Soparfi as tax-efficient rather than low-tax. Neither type of company is a legal entity in its own right. Rather, they employ one of the above forms, such as an SA or a SARL, as their legal base. The rules governing low-tax holding companies are strict and it is essential that you comply with them at all times, otherwise your company will lose its low-tax status.

What are the features of a 1929 Holding company?

  • Minimum share capital of €31.000
  • Minimum of 2 shareholders and 3 directors
  • Audited accounts required; registered office must be in Luxembourg
  • Company cannot trade or lend money except to its subsidiaries
  • Activities restricted to owning shares in other companies
  • Exempt from corporate income tax and wealth tax
  • Only taxes are 1% tax on subscribed capital and 0.2% tax on shares issued

A 1929 Holding company with funds in excess of €24.8 million – one billion francs in Luxembourg’s former currency – has Billionaire Holding status. This entitles it to an even more favorable tax regime. The minimum tax liability of a Billionaire Holding company is €50,000, much less than an equivalent 1929 Holding company would pay.

What are the features of a SOPARFI company?

  • Subject to normal corporate income tax
  • Eligible to benefit from double-taxation treaties (unlike 1929 Holdings)
  • Some beneficial tax treatment of profits and dividends

Luxembourg Incorporation

How easy is it to recruit staff in Luxembourg?

The unemployment rate in Luxembourg is low and businesses have little trouble recruiting staff as the labor pool is bolstered by workers commuting into Luxembourg from neighboring countries. The workforce is well educated and is particularly attuned to the financial services sector.

What is the Luxembourg regulatory environment like?

Luxembourg is regarded as rather more bureaucratic than some other EU member states. It complies with EU directives on labor, health and safety etc, and indeed on most taxation issues, apart from the particular circumstances of low-tax holding companies. Domestic and foreign investors alike have the right to establish business enterprises in Luxembourg.

What is the corporate tax rate in Luxembourg?

The corporate tax rate is 21.84% on profits.

Company Incorporation in Louxembourg

Are there financial incentives available in Luxembourg?

In addition to being a tax haven, Luxembourg has a number of schemes designed to promote investment. It has established a framework for investment incentives to counter the country’s historic reliance on the steel sector, and grants are available to encourage investment in other manufacturing and high-tech industries. The government also provides equity funding for certain kinds of investment, particularly in development areas.

How much does it cost to open a company in Luxembourg?

The value is € 10,400 and the services included in this amount are: Luxembourg, bank account opening and VAT registration.Registered address for 12 months and telephone number in Luxembourg: cost of € 7,500.

How can I obtain more information about opening a company in Luxembourg?

Please contact us if you have questions and/or want to receive more information on opening a company in Luxembourg.

Support

The benefits of having your own company are virtually unlimited. Opening and managing a company with Europa Expert’s orientation is even simpler and easier. We provide all the needed support to open and manage your company in Luxembourg.

Services we provide
Consulting for new companies (company’s name, website, etc.)
Initial registration
Corporate documents
Bank account in Luxembourg bank
Business Address and Mailbox in Luxembourg
Fiscal registration (VAT)
Accountancy (according to Luxembourg Law)
Annual tax declaration
Virtual Office in Luxembourg

Luxembourg

Open a company in Luxembourg

Why open a company in Luxembourg?

The world’s wealthiest country by GDP and one of the smallest in size, Luxembourg provides a unique low-tax environment for international investors. The country is widely used in corporate structuring for cross border transactions, but due to its place in Europe’s political environment it is constantly adapting its tax legislation, to avoid adverse conflict with the tax authorities of other EU countries. Due to its progressive and adaptive approach, Luxembourg is, and will remain, a beneficial country for international business structuring.

Is Luxembourg a low-tax environment for everyone?

Not at all – purposely the tax benefits in Luxembourg are carefully structured to ensure minimal disruption with other EU countries. In many ways it is a high-tax country – corporate income tax is 31%, individual tax rates are higher and there’s a wealth tax on top. On the face of it, the corporate structure in Luxembourg is similar to that of most other EU states, with most companies adopting the usual joint stock or limited liability formats. However within this standard structure is a strictly-defined class of holding company. Qualify for this – and corporate income tax can sink to below 1%.

What are the most common types of company formation in Luxembourg?

  • Societé Anonyme (SA): joint stock company, minimum share capital €30,000, minimum of three directors, a registered office in Luxembourg, and audited accounts if the company exceeds a certain size
  • Société à Responsabilité Limitée (SARL): limited liability company, minimum share capital of €12.400, no more than 40 shareholders; minimum of three directors, a registered office in Luxembourg, and audited accounts subject to size

How can I set up a low-tax company in Luxembourg?

There are two main kinds of low-tax business entity – the 1929 Holding company and the Soparfi. In fact, it would be more accurate to define a Soparfi as tax-efficient rather than low-tax. Neither type of company is a legal entity in its own right. Rather, they employ one of the above forms, such as an SA or a SARL, as their legal base. The rules governing low-tax holding companies are strict and it is essential that you comply with them at all times, otherwise your company will lose its low-tax status.

What are the features of a 1929 Holding company?

  • Minimum share capital of €31.000
  • Minimum of 2 shareholders and 3 directors
  • Audited accounts required; registered office must be in Luxembourg
  • Company cannot trade or lend money except to its subsidiaries
  • Activities restricted to owning shares in other companies
  • Exempt from corporate income tax and wealth tax
  • Only taxes are 1% tax on subscribed capital and 0.2% tax on shares issued

A 1929 Holding company with funds in excess of €24.8 million – one billion francs in Luxembourg’s former currency – has Billionaire Holding status. This entitles it to an even more favorable tax regime. The minimum tax liability of a Billionaire Holding company is €50,000, much less than an equivalent 1929 Holding company would pay.

What are the features of a SOPARFI company?

  • Subject to normal corporate income tax
  • Eligible to benefit from double-taxation treaties (unlike 1929 Holdings)
  • Some beneficial tax treatment of profits and dividends

Luxembourg Incorporation

How easy is it to recruit staff in Luxembourg?

The unemployment rate in Luxembourg is low and businesses have little trouble recruiting staff as the labor pool is bolstered by workers commuting into Luxembourg from neighboring countries. The workforce is well educated and is particularly attuned to the financial services sector.

What is the Luxembourg regulatory environment like?

Luxembourg is regarded as rather more bureaucratic than some other EU member states. It complies with EU directives on labor, health and safety etc, and indeed on most taxation issues, apart from the particular circumstances of low-tax holding companies. Domestic and foreign investors alike have the right to establish business enterprises in Luxembourg.

What is the corporate tax rate in Luxembourg?

The corporate tax rate is 21.84% on profits.

Company Incorporation in Louxembourg

Are there financial incentives available in Luxembourg?

In addition to being a tax haven, Luxembourg has a number of schemes designed to promote investment. It has established a framework for investment incentives to counter the country’s historic reliance on the steel sector, and grants are available to encourage investment in other manufacturing and high-tech industries. The government also provides equity funding for certain kinds of investment, particularly in development areas.

How much does it cost to open a company in Luxembourg?

The value is € 10,400 and the services included in this amount are: Luxembourg, bank account opening and VAT registration.Registered address for 12 months and telephone number in Luxembourg: cost of € 7,500.

How can I obtain more information about opening a company in Luxembourg?

Please contact us if you have questions and/or want to receive more information on opening a company in Luxembourg.

Support

The benefits of having your own company are virtually unlimited. Opening and managing a company with Europa Expert’s orientation is even simpler and easier. We provide all the needed support to open and manage your company in Luxembourg.

Services we provide
Consulting for new companies (company’s name, website, etc.)
Initial registration
Corporate documents
Bank account in Luxembourg bank
Business Address and Mailbox in Luxembourg
Fiscal registration (VAT)
Accountancy (according to Luxembourg Law)
Annual tax declaration
Virtual Office in Luxembourg

IN THE USA: + 1 305 824-9100 FAX: 305 675-8584  409 NW 10th Terrace Hallandale Beach, FL 33009

IN BRAZIL:  +55 11 4063-6052 FAX: 11 3957-1612 Rua Maestro Cardim, 354 – Cjs 91 e 92 Bela Vista – São Paulo/SP                                01323-000 – Brazil

IN EUROPE: +44 020 8144-5686    

 IN THE USA: + 1 305 824-9100

 FAX: 305 675-8584
 409 NW 10th Terrace
 Hallandale Beach, FL 33009 

 IN BRAZIL: +55 11 4063-6052 

 FAX: 11 3957-1612

 Rua Maestro Cardim, 354 – Cjs 91 e 92 

 Bela Vista – São Paulo/SP

 01323-000 – Brazil 

 IN EUROPE: +44 020 8144-5686 

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