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Luxembourg

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Buying a European shelf company with VAT number

Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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Guide to Company Incorporation in Luxembourg

January 10, 2011, 3:02 pm
BridgeWest

1. What is the minimum share capital of a SARL in Luxembourg (Limited Liability Company)?
Prior to setting up a Limited Liability Company in Luxembourg, the founders must take into consideration that the minimum capital provided cannot be less then 12,400 EUR and the maximum number of shareholders is 40. The capital is divided into participation certificates which cannot be transferred freely.
 
2. What is the minimum share capital for a SA in Luxembourg (Joint Stock Company)?

The Joint Stock Company is a business entity designated for larger enterprises and the minimum capital required to open such a company is 31,000 EUR divided into freely transferable shares.

3. Are there any special requirements for establishing a SARL in Luxembourg?

Setting up a Limited Liability Company in Luxembourg is not a very complex procedure, foreign investors opening companies here frequently. The Articles of Association dictate the powers in the company, and the language of legislation and corporate documents should be French or German. A SARL must have at least one director and one shareholder who can be of any nationality. An office address or a virtual office is required. The company is obliged to open a bank account and in order to do that the account titular must travel to Luxembourg, or appoint a legal representative authorized through power of attorney to carry out the incorporation procedures.

4. How can I register for VAT in Luxembourg?
Registration for VAT in Luxembourg is only mandatory businesses with an annual turnover that exceeds 10,000 EUR. There is no threshold for resident and non-resident businesses, and all companies engaging in commercial activity must register for VAT when they begin their activity. All businesses, resident and non-resident, or their representatives must file a declaration at the Administration de l'Enregistrement et des Domaines. As a result the company is issued a VAT identification number.

5. How can I open a bank account in Luxembourg?
For company incorporation in Luxembourg, it is required to open a bank account in which to deposit the initial capital. After incorporation the bank account is unblocked so that the company manager can dispose of the deposited funds. The process of creating a bank account is straightforward, and the law of Luxembourg allows bank accounts in multiple currencies, which can be very useful. Opening a bank account in Luxembourg can be done through a representative with due diligence information including notarised copies of passport of all directors, certificate of incorporation, articles of association of the company and power of attorney. Banks in Luxembourg offer a great range of services, as internet banking and international trading, investment banking services etc.
 
6. How can I recruit personnel in Luxembourg?

The quality of living in Luxembourg is high, mainly due to a strong social security system, allowing employees to benefit from plenty advantages. Therefore there are certain conditions that a new employer needs to meet in order to recruit personnel. However there are plenty websites specialised in placing workforce and for more focused attention a newly established company can hire a recruitment agency which will provide the best solutions.

7. What is the average salary in Luxembourg?
The state of Luxembourg offers a great quality of life, with an average salary as high as 3,000 EUR,  while having one of the worlds most highly skilled workforce.

8. What is the overall economical situation in Luxembourg?

Luxembourg has a stable economy, with high-income mostly due to the diversified industrial sector and productive workforce. Luxembourg ranks as one of the most secure countries to do business in, and as a result many companies are foreign. The economy is highly influenced by foreign investors, as well as workforce. Even if the growth of the economy has slowed down, mostly due to the world recession, the standard of living maintains the highest in the European Union. As for foreign investment, the government continues to encourage it, offering plenty incentives and security of rights.

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

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Company Formation in Luxembourg

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BridgeWest provides a wide range of legal services in Luxembourg through our affiliated Luxembourg lawyers and Law Firms. We are mainly specialized in the main aspects of Luxembourg Commercial Law, including Company Formation, Debt Collection, Com ... [More]