Business Start-up Costs in Luxembourg

1. What is the minimum share capital?

When it comes to setting up a limited liability company in Luxembourg, the founders have to provide a minimum share capital of 12,400 EUR, while the incorporation of a joint stock company requires a minimum share capital of about 31,000 EUR.

2. What are the Company Registration fees? 

In order for a company to start its activity, it must register in Luxembourg. The costs for this procedure reach an approximate amount of 4,000 EUR. The estimated notarial costs are around 1,000 EUR, besides some smaller additional Trade Register Fees. Verifying the uniqueness of the company’s name is also subject to a fee, as well as the business license. BridgeWest is able to provide a company incorporation package of 3,200 Euros (including all required expenses for the formation).

3. What are the costs to rent an office space?

Renting an office in Luxembourg costs around 40 EUR per square meter per month, depending on the location and the position of the office.

4. What are the costs for a virtual office if the client will not rent a location?

The costs for using a virtual office are significantly lower than renting an office in Luxembourg. However, the service package should include at least mail delivery, fax reception and phone answering, limiting the costs between 50 and 500 EUR.

5. What is the cost of hiring an employee?

The employer is responsible to pay to the Luxembourg authorities the income tax per employee, therefore the rate is deducted from the employee’s salary. The average income per month in Luxembourg can be as high as 3,000 EUR.

6. What are the costs of hiring a local accountant?

The choice of hiring a local accountant to take care of the financial matters of the company is correct, especially since the costs are various for his services and depend on the company’s activity, too. The costs are situated between 200 and 400 EUR for a local accountant in Luxembourg.

7. What is the yearly corporate tax?

The yearly corporate tax varies based in the company’s income, so a company with an income below 15,000 EUR is subject for a 21% corporate tax rate. If the company’s income exceeds 15,000 EUR, the corporate tax rate is 22.05%. However,the Municipal Business Tax of 6.75% is usually paid also as part of the corporate tax rate.

8. What is the yearly dividend tax?

A company registered in Luxembourg should pay a dividend tax rate of 15% of gross dividends.

BridgeWest offers company registration in Luxembourg, including virtual office and other related services.