The choice of a place to set up any company should be conscious and carefully analyzed. If the co-founder of the company makes a mistake, he will miss out on profits and his project will take longer to pay off. Each form of ownership is created to solve certain business problems. If co-founders are interested in the issue of asset preservation, there is no better option than a trust. Luxembourg is one of the most popular places to create one.
Creating trust in Luxembourg is a bit more complicated than in other regions. However, it is a great place to register it. This country has many privileges, and its favorable location in Europe is one of the advantages of opening this type of corporation.
Before you open a trust company in Luxembourg, you should carefully study the advantages of working in this particular state. There are many dividends for owners of such companies that are not always available in other regions. In addition to the extremely convenient location, also many highlights:
As you can see, it is possible and necessary to work in this country. The main thing is to understand the process of creating trusts and how they function on the territory of this country.
The incorporation of a trust company in Luxembourg was created by signing a special arrangement between the settlor and the trustee. According to this arrangement, all acquisitions of the trust are transferred into the possession of the settlor, and he can not only own but also manage them. At the same time, a third party will receive dividends from the income, which the co-founder also specifies in the agreement.
In addition, the contract stipulates the prerequisites underneath which the manager must give all or part of the acquisitions to the beneficiary. Luxembourg has a special law on trusts, which has been in force for 20 years. It specifies all the rights and obligations of the parties, as well as the requirements for each of them. For example, a trustee can only be a legal entity that has been approved to provide such services by the local regulator.
Registration of a trust in Luxembourg is only possible if the corporation fully complies with the requirements of the local regulator. In particular, co-founders need to:
In addition to the above requirements, it is a good idea to hire qualified accountants for the trust to help evaluate the actions of the trustees to ensure the effective structure of the legal entity.
As you can see, setting up a trust is much easier than incorporating a company. However, this does not mean that everyone who tries to set up a trust on their own is successful the first time around
Trusts in Luxembourg are practically never refused. However, quite often there are mistakes in the contracts, which were made by the co-founders of such a legal entity when trying to execute the documents on their own. Therefore, such work is most properly left to lawyers.
Our company is ready to help in formalizing a trust company. Our employees are a team of true professionals, where everyone knows his profile, but is ready to back up colleagues at any time. We will be able to check the draft of your agreement, spot any errors in it and promptly correct them before you sign it. With our assistance, you will be able to assemble a trust the first time and the trustee will be able to deal with the issue of accumulating funds for the beneficiary more fast.
If you ought any legal-assistance in opening a trust, you can reach our staff in any convenient way and we will be able to help you solve such problems faster.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.