Lawyer
Expert in corporate and international corporate law. Has extensive experience in supporting the acquisition of financial licenses in Ukraine, as well as business incorporation in the EU, the United Kingdom, Switzerland, the UAE, and key Asian jurisdictions.
Company registration in Luxembourg
Currently, such a jurisdiction as Luxembourg can be safely attributed to one of the most developed and stable economies of the European Union. The country occupies leading positions in the field of finance, investment, banking and corporate governance. Thanks to a stable political system, a favorable tax environment (in some cases) and a strong legal framework, Luxembourg has become a popular destination for international business, financial holdings and investment structures.
Advantages of registering a company in Luxembourg
- Tax stability and preferential regimes. Luxembourg has a developed system of tax treaties to avoid double taxation (over 80 treaties with different countries). Companies can use preferential regimes for holding structures, investment funds and asset management companies.
- Prestige of the jurisdiction. Luxembourg is a highly reputable jurisdiction, perceived by international banks, investors and partners as a reliable platform for doing business in Europe.
- Access to the EU market. As a full member of the European Union, Luxembourg provides unhindered access to the EU internal market, as well as to the SEPA single banking area.
- Flexibility of corporate structures. Local legislation allows the creation of companies of various forms – from classic limited liability companies to investment funds and special holding companies (SOPARFI).
- High level of confidentiality. Although Luxembourg adheres to international transparency standards, information about beneficiaries is only disclosed to authorized authorities, which ensures a balance between legality and privacy.
Main legal forms of companies in Luxembourg
- Société à responsabilité limitée (SARL) — limited liability company. This is the most common form of company, usually chosen by small and medium-sized enterprises. The minimum authorized capital is 12,000 euros, can be paid in installments. From 1 to 100 shareholders.
- Société anonyme (SA) — joint-stock company. Suitable for large business projects or companies that plan to attract investments. Minimum capital — 30,000 euros. Annual audit required.
- SOPARFI (Société de Participations Financières) — holding company. Used to own shares or stakes in other companies, manage investment assets, optimize tax flows.
- SPF (Société de gestion de Patrimoine Familial) — family company for managing private assets, suitable for private investors or family offices.
Company Registration Procedure in Luxembourg
- Preparation of constituent documents: Articles of Association; Deed of Incorporation; Preparation of documents for notarial certification.
- Selection and reservation of the company name in the Luxembourg Trade Register (RCS – Registre de Commerce et des Sociétés).
- Opening a corporate account in a Luxembourg bank or financial institution to deposit the authorized capital.
- Notarization of constituent documents. Without notarization, registration of a company in Luxembourg is impossible.
- Registration of the company in the RCS – the official trade register, after which the company receives a legal entity and an identification number (Numéro d’Identification).
- Obtaining a tax number (VAT Number) and registration with the Luxembourg tax service (Administration des contributions directes).
- Registration in the social security system if the company plans to hire employees.
Taxation conditions for companies in Luxembourg
- Corporate Income Tax — approximately 24.94% (including municipal tax).
- VAT — standard rate of 17%, one of the lowest in the European Union.
- Dividends, royalties, interest may be taxed taking into account international agreements on the avoidance of double taxation.
- For holding companies (SOPARFI), a number of tax exemptions are provided for dividends and profits from the sale of shares, provided that the requirements for participation in the capital of subsidiaries are met.
Please note that our Law Firm “Prikhodko and Partners” provides full support for the process of registering a company in Luxembourg in accordance with the requirements of the legislation of the Grand Duchy. Our team provides a full legal cycle of creating a company in Luxembourg, including:
- choosing the optimal corporate form;
- preparation of documents and company registration;
- opening an account with a bank or payment institution;
- preparation of internal documentation (statutes, protocols, founders’ decisions);
- consulting on tax structure and compliance;
- obtaining licenses for financial, investment or crypto companies;
- maintaining accounting and reporting in accordance with the requirements of Luxembourg law.
Company registration in Luxembourg is a strategic decision for businesses seeking to combine a high reputation, tax efficiency, stability, and in some cases, confidentiality. Luxembourg is a jurisdiction for serious international business, where every element — from legislation to the banking system — is aimed at conducting business safely and efficiently.
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