Company registration in Luxembourg
Set Up a company in Luxembourg with an expert team. The firm provides full business support at all stages of company registration. In addition, we provide legal services such as accounting and reporting solutions, and opening a bank account in Luxembourg. Contact us to make the first step to extend the EU market.
Legal forms in Luxembourg
Choose the legal form of the company that suits your needs. There are three popular legal types of companies in Luxembourg. Public Limited Liability Company – Societe Anonyme (SA), Private Limited Company – Societee a Responsabilite Limitee (SARL), Simplified Limited Liability Company (SARL-S).
Private Limited Liability Company (SARL)
The most popular form of registration in Luxembourg.
- minimum capital for establishment € 12,500;
- 100% of the capital is fully paid at the time of registration;
- individuals and legal entities, residents, and non-residents of Luxembourg are entitled to be shareholders (minimum - one shareholder, maximum - 40);
- only the issue of registered shares is allowed;
- shareholders are not free to transfer their shares to third parties without proper registration and compliance with the provisions of the Memorandum of Association of the company;
- a single director can manage the firm. Foreigners are entitled to be directors. Nominee directors are allowed;
- information on directors is entered in the open register of Luxembourg;
- the register of shareholders is kept at the registered office in Luxembourg;
- the company is not required to appoint an auditor for annual reports.
Public Limited Company (SA)
A quite common form of registration in Luxembourg.
- The minimum capital for an institution is € 31,000;
- 25% of the capital amount is paid at the time of registration;
- individuals and legal entities, residents, and non-residents of Luxembourg are entitled to be shareholders (minimum - two shareholders, maximum - without restrictions);
- the issue of registered and bearer shares is permitted;
- shareholders, in general, are free to transfer their shares to third parties, subject to appropriate registration and compliance with the provisions of the Memorandum of Association of the company;
- The company is governed by a board of directors consisting of at least three members. Foreigners are entitled to be directors. Nominee directors are allowed;
- information on directors is entered in the open register of Luxembourg;
- the register of shareholders is kept at the registered office in Luxembourg;
- the company is obliged to appoint an auditor for annual reports.
Simplified Limited Liability Company (SARL-S)
This type of legal entity gives businessman the opportunity to open a company from 1 Euro
The authorized capital of SARL-S can range from 1 to 12,000 euros.
SARL-S is available to individuals only. For the establishment of SARL-S, the following requirements must be met:
- SARL-S must conduct business;
- To conduct this business, you need an official permit issued by the Ministry of Economy.
- SARL-S in Luxembourg is administered by one or more natural persons designated by the Articles of Association or general meeting for a limited or unlimited period. There are no restrictions on the citizenship of managers.
ADVANTAGES OF DOING BUSINESS IN Luxembourg
The aggregate size of Luxembourg investment funds is second only to US funds. This is due to the ease with which the Luxembourg Government adapts its legislation to the requirements of the times. For example, legislation on licensing cryptocurrency exchanges was first developed and adopted here.
In addition, Luxembourg prioritizes the development of high-tech businesses. For this, Luxembourg has tax incentives for investment activities.
TAX IN Luxembourg
The main tax rate for legal entities is 21% of the amount of private equity raised by the company for the reporting period. It is necessary to pay attention to the fact that in addition to the main income tax, business entities in Luxembourg also pay a municipal tax, which in each region is established at the discretion of local authorities. The municipal tax rate for corporations in Luxembourg ranges from 5 to 9 percent of the main income tax. Unlike many other Western countries, Luxembourg’s tax legislation does not provide for the payment of a special capital gains tax.
ACCOUNTING IN Luxembourg
Our service includes advice on accounting and taxation issues in Luxembourg (for example, taxation of a certain transaction, preparation of accounting documents). Full accounting (posting and registration of primary documents, drawing up and filing tax reports, calculating salaries and taxes, as well as other services). Moreover, representing your interests in relations with the State Revenue Service.
Restoration of accounting for previous periods and preparation of the necessary reports (including the annual report).
