Company in Luxembourg

Company incorporation in Luxembourg

We establish and incorporate all types of companies in Luxembourg SA, SARL, SOPARFI (Holding companies) SPF-Holdings (Ex holding 1929), but also the different forms of investment companies such as SICAR, SICAV, and other investment funds.

Our extensive knowledge of Luxembourg and its opportunities allows us to advise you on the best choices for setting up a company in Luxembourg.

Luxembourg is attractive for issues of real estate income despite changes in 2008, and the collection of copyright,intellectual property, and other royalties.

Tax system

Luxembourg is attractive because of its tax treaties and tax schemes whereby little to no taxes can be paid, the presentation of tax rates should be read with restraint, because in fact the proposed Luxembourg financial setups allow for a tax optimization that each year continues to attract more and more foreigners 10 years after the first reforms.

The list below gives a partial picture and obscures the tax advantages that you can gain from.

– Income tax: 21.84% for companies with taxable income in excess of 15,000 € (21% plus 4% contribution to the employment fund), 20.8% for the others.

– Municipal Tax: 6,75%

– Tax on capital gains: 21%

– Tax on interest and royalties: 0%

– Tax on dividends: 15%

– VAT: 15% (3% for e-commerce)

Under EU law, the free movement of capital is the rule.

Incorporating a company in Luxembourg offers a series of financial and fiscal incentives, for different types of companies and holding companies, the management of intellectual property, real estate, asset management, and other.

Tax rate

– Capital gains tax: 21.84% for companies with taxable income in excess of 15,000 € (21% plus 4% contribution to the employment fund), 20.8% for the others. – Municipal Tax: 6.75% – Tax on capital gains: 21% – Tax on royalties and interest: 0% – Tax on dividends: 15% – VAT: 15%

Minimum capital

12,500, € fully paid at creation

Shareholders

Minimum of one partner (one-man SARL), maximum 450 The use of shareholder nominees is a common practice.

Foreign shareholders

Yes

Directors

A minimum of one director. In this case, a secretary-general is not required.

Foreign holding

Yes

Legal obligations

Annual audit required if the company exceeds a certain size

Deadline

2 weeks from the receipt of all documents

Headquarters

Business address, telephone transfer, fax, and mail Possibility to have a physical office (prices vary depending on demand)

Accounting

Mandatory annual financial report, account of profits and losses, and schedule, based on an estimated number of monthly bills and a forecast of annual turnover.

Accounting

In accordance with standard practices in the EU, companies must register and submit annual accounts to regulatory authorities. Annual audits required if the company exceeds a certain size.

The setting up of a company in Luxembourg requires a number of essential elements regardless of statute.

To find details about each company please visit the presentation page of Luxembourg and click on the st be located in Luxembourg and have an economic reality by renting an office on site.
Domiciliation in Luxembourg is strictly governed by the act’s Art. 1. (1) of the Act of 31/05/1999, so there are solutions. A solution tailored to companies like Holding, Soparfi, SPF, FIS and commercial companies using modern IT means and therefore no longer need fixed offices. You can also relocate foreign companies in Luxembourg and vice versa.

Minimum capital

In Luxembourg, the minimum capital for a SARL is 12,500 euros, fully paid, it can be higher depending on the types of companies chosen.

Bank account

Luxembourg has hundreds of banks, the account will be opened locally or abroad depending on the needs of the company, its business, and its requirements.
We offer an introduction to the Luxembourg bank of your choice.

Administrator or Director

In Luxembourg, the director takes the title of administrator, and can be of any nationality, you can also use a Nominee director under certain conditions. 
Indeed, the company’s Administrative, business, legal, and social management
 may be entrusted to a local administrator, however, his responsibility being engaged in Luxembourg in all acts of management, there should be a specific mission note marking out his authority’s limits

Shareholders

The service of Nominee Shareholder through a trust is possible and available, though the shares of companies in Luxembourg are in bearer form and automatically provide a de facto anonymity.

Holdings

Luxembourg companies are particularly known to serve as Holdings. Initially called Holding 1929 , now SPF (holding companies) and SOPARFI , they hold assets or property but also shares of French and European companies and benefit from bilateral conventions. Contact us for more information on the different solutions in Luxembourg.

Renewal

Each year the company must be renewed, pay taxes, pay a revenue stamp, renew the domiciliation of the head office, the reappointment of the Nominee director (Administrator) and preseform of company chosen.

Types of companies

There are several types of companies in Luxembourg, limited-liability companies (SARL or SA), but also SOPARFI, SPF, SICAV, SICAR.