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Company registration in Luxembourg
Company
registration in
Luxemberg
-By Himani Srivastava
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.
Thank You
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