Company Registration in Luxembourg

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What is Company Registration in Luxembourg?

Luxembourg is a small country in Europe which offers various business opportunities. Luxembourg has excellent connectivity to the EU markets because of its central location in Europe. It is very near from important European capitals and business centers like Paris, Frankfurt or Brussels. It is also one of the wealthiest countries.

In Luxembourg entrepreneurs choose to set up a company because of two following factors:

  • Economic Stability
  • Openness towards Foreign Direct Investments

In Luxembourg, company incorporation procedure is simple and quick for both national as well as foreign investors. During the global economic and financial crisis this country has managed to maintain its economic stability. In Luxembourg, financial services, manufacturing, retail, e-commerce, communications, and logistics as well as imports and exports are some of the most important business areas.

For investors, Country’s favorable legal and tax regime are the main attraction. Foreign companies get benefit because of a large number of double tax treaties concluded by the Grand Duchy with numerous countries worldwide. Taxpayers do not have any need to worry about paying the same taxes in both the countries as these treaties protect against the double taxation of the foreign-source income. 

In Luxembourg, there is a skilled and multilingual workforce. There is a large percentage of the employees are cross-border commuters. This country is open to international investments and collaboration.

TYPES OF COMPANIES

In Luxembourg, there is various type of companies which can be registered and its suitability depends upon the investor’s business purposes.

There are some types of companies which will be more suitable for small and medium-size businesses whereas others will be suitable for large businesses that want to expand their activities in the Grand Duchy.

Here are the following types of companies which are recognized under the Luxembourg Companies Law:

  • Public limited liability company (S.A.);
  • Private limited liability company (S.á.r.l.);
  • General Partnership (S.e.N.C.);
  • Limited Partnership (S.e.C.S.);
  • Partnership limited by shares (S.e.C.A.);
  • Co-operative company (S.C.)

In Luxembourg, private limited liability company and the public limited liability company are two of the most popular business forms. There is a requirement of specific minimum share capital and regarding the managing and supervisory bodies of a public limited liability company.

Foreign company who wishes to establish its presence on the market, branch is a good business option. In Luxembourg, newly incorporated company will not be a legal entity, instead of this, it will depend completely upon the mother-company abroad.

Subsidiaries are another type of companies which are preferred by the foreign legal entities. Under this, foreign company is not liable for their actions and these companies have legal personality.

This country has a perfect blend of stable economy and numerous business opportunities.

COMPANY INCORPORATION IN LUXEMBOURG

  • In Luxembourg, company incorporated need to have certain documents that will attest the existence of the legal entity in the Grand Duchy.
  • After this, articles of association need to be drafted.
  • It is must for the founding members of the company to provide specimen signatures, passport copies, and other documents.
  • After the drafting of these documents, it is required to be translated by a certified translator and then submitted to a public notary for authentication.
  • Articles of association are later published in the Luxembourg Official Gazette.
  • Another requirement is to open a bank account in Luxembourg by the investors to deposit the minimum share capital.
  • In order to comply with the requirements of the country, name of the new company also has to be verified and verification can be made in the Trade Register.
  • A company in Luxembourg will also require an office from where it can perform its business activities.
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