Luxembourg Company Formation

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Luxembourg

Company Formation and Related Services

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We encourage you to contact our partner law firms in Bucharest: Rolegal and E&C, both part of our legal network.

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Company Formation in Luxembourg

F.A.Q.


Any person or legal entity, national or foreign, can be a shareholder or a director in a Luxembourg company. Clients must know that, according to the Commercial Law in Luxembourg, companies must have a registered office.

The following steps must be followed for company registration in Luxembourg:

First of all, the client must choose the name of the company and set-up the bank account where the initial share capital will be deposited. In order to set up the bank account, the client must present identification documents such as: passport copies, identification cards or driver license, a recent utility bill or a bank statement as proof of residential address, a detailed CV, a certificate of good standing issued by the bank and possibly other documents or application forms.

After the bank account has been set up, the client must deposit the initial share capital that the bank will block until the company is incorporated.

The next step will be drawing all the documents related to the formation of the Luxembourg company. This process can be done personally or by representation based on a notarized power of attorney.

Once all the documents are ready, they can be submitted for approval with the Trade Register in Luxembourg.

BridgeWest provides company formation in Luxembourg. Our assistance includes:

-      -  drawing up the articles of association that can be signed through power of attorney (Luxembourg laws require power of attorney for any public notary proceedings);

-      -  drawing up documents for company incorporation in Luxembourg: specimen signatures, identification papers copies, application form required by the Luxembourg Company Registration Office;

-      -  arranging public notary proceedings (all procedures for company incorporation are done in front of a Luxembourg public notary);

-      -  providing a registered office in Luxembourg on demand; the registered office serves as headquarters for the company in Luxembourg and it will be made public;

-       - setting up a bank account for the company in Luxembourg; BridgeWest will help in setting up the share capital bank account, as well as a current bank account once the company is incorporated;

-       - recommending a Luxembourg accountant, as accounting services are needed for new businesses in Luxembourg. 

Types of companies in Luxembourg

- limited liability company in Luxembourg (Societe a Responsabilite Limitee – SARL) - The Luxembourg limited liability company is the most common type of business as it allows a minimum of one shareholder and a maximum of 40 and a director. The minimum share capital for a S.A.R.L. in Luxembourg is 12,500 EUR and it must be paid in full upon incorporation. The shareholders will be held liable to the extent of their participation for the company’s debt and obligations.


- joint stock company in Luxembourg (Societe Anonyme - SA) - The Luxembourg S.A. requires a minimum share capital of 31,000 EUR and a quarter of if must be paid upon incorporation. It requires a minimum of one shareholder who can be an individual or a legal entity. The shareholders will be held liable to the extent of their participation for the company’s debt and obligations.

- SOPARFI company in Luxembourg (Société de participations financières) - The Luxembourg SOPARFI company is a firm that has financial investments and it can be incorporated as a S.A.R.L. or S.A. company. The SOPARFI company benefits from Luxembourg’s “inter-corporate” privilege and benefits from attractive taxes, which is why it is very popular among foreign investors.

- general partnership in Luxemburg - The Luxembourg general partnership requires at least two shareholders and a director who will be held fully liable for the company’s debts and obligations. There is no minimum share capital required in cases of Luxembourg general partnerships.

- limited partnership in Luxembourg - The Luxembourg limited partnership must be formed by at least two shareholders. One of them will act as a general partner and will have full responsibility for the company and management rights, as well. The limited partner will be held liable for the company’s debts and obligations to the extent of his or her share contributions.

- Luxembourg Branch, Subsidiary or Representative Office - Foreign companies are allowed to set up separate enterprises from the parent company, where the foreign company will be a shareholder in a Luxembourg company. Foreign companies can also open extensions of the parent company in Luxembourg.

Taxation in Luxembourg

The standard VAT Rate in Luxembourg is 15%, but reduced rates of 6% and 3% apply to certain products.

The corporate tax rate in Luxembourg is 22.47% and it includes a 7% employment fund contribution. An additional municipal business tax also applies depending on the city the company is in (the municipal business tax in Luxembourg is 6.75%).

The dividend tax in Luxembourg is 15%, unless it is reduced by tax treaties.

BridgeWest is also able to offer ready-made Luxembourg companies and VAT registration.

Please contact us for more information and prices.


 

 



Articles on Company Formation in Luxembourg

Types of companies in Luxembourg

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The Commercial Register of Luxembourg

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Open Company Branch or Subsidiary in Luxembourg

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Guide to Company Incorporation in Luxembourg

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 i ...

Shelf Company in Luxembourg

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Paying Taxes in Luxembourg

1. What is the corporate tax in Luxembourg? In Luxembourg, the corporate tax rate varies according to the income and a 5% increase is applied as an unemployment fund contribution. Therefore, a company with an income below 15,000 EUR is subject for 21% corporate tax, while a company with a ...

VAT in Luxembourg

1. What is the VAT in Luxembourg? In Luxembourg, the standard VAT rate is 15%, the lowest that can be applied in the European Union. However. there are some exceptions that entitle you for a reduced VAT rate.  For example, a company with activity in management and safekeeping of securities is s ...

Company Law in Luxembourg

When deciding to establish a company in Luxembourg, one has to take into consideration the rules stated in the Law concerning commercial companies 1915. The initial law was first introduced on the 10th August 1915 and it has been evaluated and consolidated several times since then.  In the text ...

Doing Business in Luxembourg

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Foreign Investments in Luxembourg

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Why Invest in Luxembourg

Luxembourg offers a favorable climate to foreign investment, remaining the most promising location for business investment in Europe. Investment opportunities are high in biotechnology and health technology, e-commerce or telecommunications, not to mention banking and insurance activities. Many inte ...

Setting up a Limited Liability Company (SARL) in Luxembourg

A Limited Liability Company in Luxembourg is known under the name of Societe a Responsabilite Limitee or SARL. This type of firm is regulated by the Commercial Companies Law 1915 and it is the ideal form of business for those foreign investors who want to keep their business structure and their admi ...

Setting up a Joint Stock Company (Societe Anonyme) in Luxembourg

A Joint Stock Company in Luxembourg is known as a Societe Anonyme and abbreviated SA. This form of business is regulated by the Commercial Companies Law 1915 and it is one of the most used types of companies in Luxembourg, together with the Limited Liability Company. Capital The minimum initial capi ...

Lawyer in Luxembourg

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Luxembourg Accountant

Accountants in Luxembourg can perform their activity as individuals or as legal entities. Authorised accountants in Luxembourg are registered with the “Ordre des experts-comptables” (OEC), which supervises the activity and the responsibilities of its members. The profession of accountant ...

Luxembourg Public Notary

A notary in Luxembourg is defined as a public officer who provides advice in several matters and also has legal attributions. Activities performed by public notaries in Luxembourg are delegated by the state and require independence, impartiality and high qualifications. There are 36 notaries in Luxe ...

Power of Attorney in Luxembourg

A power of attorney in Luxembourg empowers a person to sign different documents on behalf of the donor who could not be present at the place of the meeting. By this document, one may choose a trusted person or organization to deal with financial or legal aspects concerning the grantor. Usually, a po ...

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 Comp ...

Company Liquidation in Luxembourg

BridgeWest handles company liquidation in Luxembourg. For more information, please contact us. The company liquidation in Luxembourg is preceded by  the company dissolution, which is a less expensive and quicker process of company termination. A company can cease its commercial activities ...

Register a Non Profit Organization in Luxembourg

There are two types of non-profit organizations which can operate in Luxembourg, regulated by the “Loi du 21 avril 1928 sur les associations et les fondations sans but lucrative”: the associations and the foundations. An association opened in Luxembourg is an organization ...

Nominee Director in Luxembourg

 A Luxembourgish company, whether is a limited liability company or a joint stock company, has at least one director, resident here, which can be replaced by a third party (bank, lender or shareholder) with a nominee director if it’s desired to keep the confidentiality of their interests ...

Set up a company in Luxembourg

Establishing a company in Luxembourg could prove to be quite profitable, as entrepreneurs can benefit from the tax advantages of the country, the well-organized business structure and prosperous economy. Another advantage for entrepreneurs willing to set up a company in Luxembourg consists in findin ...

Open Business in Luxembourg
We guarantee a cost-efficient solution for full company setup, bank account and VAT registration

Meet us in Luxembourg

Call us now at +44 203 287 0408 to set up an appointment with our lawyers in Luxembourg. Alternatively you can incorporate your company without traveling to Luxembourg.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Luxembourg.