Eternity Law International News Company registration in Luxembourg

Company registration in Luxembourg

Published:
December 14, 2020

Luxembourg is a developed region with a stable economy and a transparent legal framework. This is the basis for entrepreneurs to be able to successfully conduct their activities here, earning a high income. However, it should be remembered that Luxembourg is not an offshore zone.

Company forms and taxation

In Luxembourg there is no offshore zone in the standard way. Along with this, the conditions for the establishment of business by foreign capital owners are very loyal here. You can register a company in Luxembourg in one of the following legal options:

  • Holding. This type is exempt from paying taxes if subsidiaries registered in states that set an income tax rate of no more than% bring profit up to 5%.
  • SICAR. The best form in terms of tax structuring. Limited partnerships may emerge within this entrepreneurial element. The taxable base does not include increases in equity received from shares in subsidiaries. The capital is paid at a fixed rate of 1250.
  • SOPARFI. Holdings taxed according to the standard procedure.
  • SCA. This is a partnership, within the framework of which liability is imposed on the participant, limited to the amount of shares owned by him/her.
  • SA. The minimum amount of the authorized capital is 31 thousand €. By the time of registration, a quarter of this amount must be paid. The company is allowed to issue bearer shares and registered shares. It is possible to attract nominee representatives. This enterprise is required to conduct audits without fail.
  • SARL. UK – 12.5 thousand € The company is allowed to issue only registered shares. If the number of partners is 25+, a meeting is held annually. No audit required. Filing of financial statements depends on the size of the company.

VAT – 17% – a fairly low rate for the European space. Tax privileges are possible for companies working in advertising, wine and some other industries.

Reporting

Organizations registered in Luxembourg must keep copies of financial statements in the corporate database, regardless of whether it is located outside or within the country.

In addition, the company annually provides balance sheet statements, accounts according to profits and losses incurred, verified by the responsible auditor. Also, the legislature imposes an obligation on holdings to submit an income statement to the appropriate structures once a quarter. SOPARFI companies provide financial statements at the end of each calendar annual period.

If you need to register a company in Luxembourg, our specialists will help you register a company quickly and efficiently. Also, you can buy a ready-made company in Luxembourg. Write to us in the CRM form and we will help you register a company.

Eternity Law International specialists will provide you with qualified advice on the acquisition of an offshore company, opening a bank account in any jurisdiction, as well as further support of your company’s activities at any stage.

We offer ready-made European and offshore companies. It takes 2 days to reissue documents for new owners.

If you have any questions or need advice on registering or buying a company, call us at the phone numbers listed on the website, or write to us in the CRM form located at the bottom of the page. Our specialists will answer you online.

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