Shelf Company in Luxembourg

Luxembourg is one prosperous state, having a high quality of life and a welcoming environment for foreign investment. Many investors seek to start a business here, due to the relatively low taxes and rather simple procedures. Starting a business can be done by establishing a brand new company from scratch, or acquiring a shelf company. The last business type is a company that has been already incorporated and registered in Luxembourg, with or without previous activity.

A shelf company in Luxembourg is bought for a price that usually varies depending on the age of the company. In general as the price is higher as the company is older. Even though acquiring a shelf company is not a common practice, the process is simple and the biggest advantage is its immediate use.

 In Luxembourg all that is needed to acquire a shelf company is to transfer the shares. For this purpose both parties need to sign a document, called Share Transfer Agreement and notarize it in order to authenticate it. As the buyer of the shelf company can either be legal entity or natural person, identification acts that need to be provided can be passports, identity cards or registration certificate from the relevant institution that registered the legal entity.

At this point the new shareholder can proceed to modify the company's Articles of Association by changing the company name, address, adding another object of activity or bank representatives or other changes, except the date of incorporation. All of these changes need to be registered with the Commercial Register of Luxembourg, in order for the new company to function legally.

As some shelf companies in Luxembourg have had previous activities, the future owner should keep in mind that a thorough documentation is recommended. The new shareholder should be informed on the previous activities of the company, tax and accounting fillings and possible assets. However the advantage of a shelf company that has functioned before may be the already established commercial relationships, the trust built in time etc.

The process of share transfer, or the method to obtain a shelf company, resembles with setting up a brand new company, therefore the practice is not very common. However, it represents the best way to go for entrepreneurs who wish to engage in business immediately and without complex procedures.

BridgeWest is able to offer VAT-registered Luxembourgish shelf companies headquartered in Luxembourgish major cities per the requirements of the clients.

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