Forming a Luxembourg Company | Fidusuisse Offshore

Forming a Luxembourg Company

  • Incorporation time: 19 days
  • Shelf companies: Yes
  • Accounting: Yes
  • Secretary: Yes
  • Nominee Shareholder: Yes
  • Nominee director: Yes
Tax 29%
1 € = 1.35 USD

History of Luxembourg

Luxembourg, or the Grand Duchy of Luxembourg, is a small country (2,586 km2) located between France, Germany and Belgium. Luxembourg has a varied culture, with three official languages: French, German and Luxembourgish. Luxembourg is one of the founders of the European Union and is well-known for its diverse economy, as well as for its GDP per capita, the highest in the world.

Luxembourg as an Onshore Financial Services Centre

Luxembourg enjoys an excellent reputation internationally, but it should be noted that its taxation is not lower than other European countries. However, its tax system is very generous for a certain type of onshore company: a holding company.

Indeed, Luxembourg holding companies are exempt from tax, as are the dividends paid to them. These companies are known in Luxembourg as SOPARFI and there are 12,000 of them. It is, however, possible to create a limited liability company, a limited company, a venture capital investment company, a branch or a representative office. Luxembourg also provides its companies with a high level of confidentiality and high-quality banking secrecy.

Luxembourg Summary

Luxembourg is a unique jurisdiction because each solution must be individually tailored to the client’s needs. In Luxembourg the domiciliary agent as well as the directors and managers are responsible for the actions of the company and because of this Luxembourg is most suitable for sizeable projects where the founders wish to have a presence on site. This jurisdiction is mainly used by holding companies and investment funds rather than for trading companies.

The different types of companies

To create a company in Luxembourg, it is necessary to complete 6 procedures and wait 19 days.

Legal Entity Capital Number of Shareholders, Members or Partners
Limited liability company (SARL) EUR 12,394 minimum Minimum of two shareholders, maximum of 40. Limited liability.
Public limited company (SA) EUR 30,986 minimum At least one shareholder. Limited liability.
General partnership (SNC) Not Applicable Minimum 2 partners. Unlimited, joint and several liability
Limited partnership (SC) Not Applicable Minimum of two partners (general or limited). General partner must assume unlimited liability but all limited partners enjoy limited liability.
Cooperative (SCOP) No minimum capital Minimum seven partners, unlimited liability.

Role of Company Directors in Luxembourg

Company directors must be Luxembourg residents or nationals. A director is wholly liable for the company’s actions. It is possible to appoint a nominee director but he must be involved in and fully understand the company’s activity.

Link: Trade Register

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