Company registration in Luxembourg - COREDO

Company registration in Luxembourg

Even though the Grand Duchy of Luxembourg is one of the world’s smallest countries, it ranks first worldwide in per capita GDP. This country is the financial centre of Europe, and foreign investors are granted the widest opportunities here.

 

ADVANTAGES OF COMPANY REGISTRATION IN LUXEMBOURG

Luxembourg’s economy is dominated by the financial sector. The manufacturing sector, retail trade, communications, and logistics also play a significant role. Representative offices of many EU institutions and companies are present in the country making it exceptionally convenient for conducting business. In addition to the prestige of the jurisdiction, several other advantages make opening a company in Luxembourg beneficial for representatives of various fields of activity, namely:

  • flexible tax policy;
  • openness to foreign investments;
  • stable economy;
  • a clear, well-developed legislative framework;
  • innovation and research work encouragement policy;
  • lack of currency control;
  • simple and fast company registration process.

TYPES OF BUSINESS ORGANISATION IN LUXEMBOURG

The following types of business organisations are provided when registering a business in Luxembourg:

  • sole proprietorship (self-employed persons);
  • limited liability company (SARL) and its simplified version (SARL-S);
  • public limited liability company or joint stock company (SA);
  • full (SENC) or limited (SECA) partnership.

Investment funds and holding companies are most common here.

STAGES OF COMPANY REGISTRATION

To register a legal entity in Luxembourg, it is necessary to choose the name and type of business, develop a memorandum and articles of association, and the founding members must provide passport data. All documentation must be adapted by the translator and notarized. The minimum amount of authorised capital depends on the type of services provided by the company. It ranges from 50 thousand to 8.7 million euros in the financial sector. Any company operating in Luxembourg must have a director — it can be either an individual or a legal entity, and its residence does not matter. A corporate account in one of the banks is also mandatory.

TAXES IN LUXEMBOURG

Luxembourg has a progressive corporate tax rate (15% for companies with an income of less than 175,000 euros, 17% for others), and tax benefits depend on the chosen legal form and type of activity. For individuals unfamiliar with the jurisdiction, it is advisable to consult with a tax specialist to avoid conflicts with local regulatory authorities.

Setting up and registering a new company in Luxembourg usually does not cause any difficulties. The entire procedure takes about two weeks from the date of submission of documents. Licensing can make this process somewhat longer. To ensure a smooth and hassle-free registration process, it is recommended to seek the assistance of experienced COREDO specialists who have a thorough understanding of all the details and intricacies of the Luxembourg legislation.

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