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Company formation in Luxembourg
Comprehensive assistance in company formation, including banking services
How to form a company in Luxembourg
1
Document submission
You submit to us necessary documents of the future founders and directors for the purposes of company formation in Luxembourg and opening a bank account in Luxembourg
2
Payment of services
Payment of our services for company formation in Luxembourg and/or bank account assistance in Luxembourg
3
Company formation
We register a new company in Luxembourg for you. Upon completion of the registraion corporate documents are either delivered to you or submitted to a bank for the subsequent opening of a bank account
4
Bank account opening
In case you request an assistance with a bank account, we arrange an interview at the bank for you, inform you about the date of the visit and accompany you on your way to the bank. After the bank account is opened and active you receive corporate documents of the formed company as well as the access to the bank account
Key aspects to consider prior to incorporating a company in Luxembourg
Interest and royalties withholding tax rate is 0% on payments by companies established in Luxembourg to non-resident companies.
1. Founders that would like to register a company in Luxembourg can either be resident or non-resident in Luxembourg.
2. A resident or a non-resident individual can be a company director in Luxembourg. It is not required to register a company in Luxembourg with a resident individual as one of its shareholders or directors.
3. One individual can register a company in Luxembourg and simultaneously be a shareholder and a director in this company if such company is registered as a S.a.r.l. (a limited liability company).
4. There is no requirement for creating substance in Luxembourg in order to establish a company or to conduct business in Luxembourg. However, there is a requirement for creating substance in Luxembourg for the purposes of VAT registration - it is necessary to rent an office space or have a virtual office.
5. Minimum share capital that is required to register a company in Luxembourg as S.a.r.l. (a limited liability company) is EUR 12,000.
6. Information about company founders, shareholders and directors after company registration in Luxembourg is complete is publicly available in the state corporate register.
7. We can help you register a company in Luxembourg remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Luxembourg for 1 day in order to open a corporate bank account.
2. A resident or a non-resident individual can be a company director in Luxembourg. It is not required to register a company in Luxembourg with a resident individual as one of its shareholders or directors.
3. One individual can register a company in Luxembourg and simultaneously be a shareholder and a director in this company if such company is registered as a S.a.r.l. (a limited liability company).
4. There is no requirement for creating substance in Luxembourg in order to establish a company or to conduct business in Luxembourg. However, there is a requirement for creating substance in Luxembourg for the purposes of VAT registration - it is necessary to rent an office space or have a virtual office.
5. Minimum share capital that is required to register a company in Luxembourg as S.a.r.l. (a limited liability company) is EUR 12,000.
6. Information about company founders, shareholders and directors after company registration in Luxembourg is complete is publicly available in the state corporate register.
7. We can help you register a company in Luxembourg remotely, on the basis of a power of attorney. It is necessary for the director of the new company to travel to Luxembourg for 1 day in order to open a corporate bank account.
Cost of services
Formation of a S.a.r.l.
Timeframe - 15 business days
Timeframe - 15 business days
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Advantages of incorporating a company in Luxembourg
Attractive business-environment
- One of the world's leading financial centers
- Logistics center between Belgium, France and Germany
- Qualified multilingual workforce
- Well-developed infrastructure
- Low inflation rate
Stability and security
- Political stability
- Secure legal and justice systems
- Comprehensive protection of property rights
- Comprehensive personal security
- Investment protection
Tax benefits
- Various tax incentives in the areas of risk capital, audiovisual activities, environmental protection, R&D and intellectual property.
- Interest and royalties withholding tax rate is 0% on payments by companies established in Luxembourg to non-resident companies
- No royalties withholding tax
- Multiple double tax treaties
No foreign exchange controls
- Luxembourg joined the Euro area which allows it to secure free capital transfer in any currency. Individuals and business-entities, either resident or non-resident in Luxembourg may open bank accounts in local banks in any currency
Ease of establishing and doing business
- Remote company formation in Luxembourg is available
- 100% foreign ownership of a company is available
More about Luxembourg
Grand Duchy of Luxembourg is located in Western Europe, and has a territory of 2586.4 square kilometers. Luxembourg borders Belgium, France and Germany. The capital city of Grand Duchy of Luxembourg is Luxembourg, the location of key government institutions.
Population of Luxembourg amounts to around 645,4 thousand people.
Population of Luxembourg amounts to around 645,4 thousand people.
Official currency of Luxembourg is euro (EUR).
Economy of Luxembourg is primarily based on financial, steel and idustrial sector.
Tertiary sector makes up almost 86% of the GDP of the country, followed by industry sector at 12% and tourism at 8.7%.
Imports of Luxembourg consist of are energy, mineral fuels, consumer goods, cars, medicaments, food and beverages. Exports of Luxembourg consists of iron blocks, rubber tires, iron sheet piling, steel products, aluminium cars, broadcasting equipment, valves, textiles, paper, dairy, eggs, honey.
Primary trading partners of Luxembourg are Belgium, Germany, France, Netherlands, Italy, United Kingdom, China and United States.
The GDP of Luxembourg grew by 5% in 2021 and amounted to USD 86.71 billion.
Economy of Luxembourg is primarily based on financial, steel and idustrial sector.
Tertiary sector makes up almost 86% of the GDP of the country, followed by industry sector at 12% and tourism at 8.7%.
Imports of Luxembourg consist of are energy, mineral fuels, consumer goods, cars, medicaments, food and beverages. Exports of Luxembourg consists of iron blocks, rubber tires, iron sheet piling, steel products, aluminium cars, broadcasting equipment, valves, textiles, paper, dairy, eggs, honey.
Primary trading partners of Luxembourg are Belgium, Germany, France, Netherlands, Italy, United Kingdom, China and United States.
The GDP of Luxembourg grew by 5% in 2021 and amounted to USD 86.71 billion.
International business expands to Luxembourg and incorporates a company in Luxembourg primarily for:
Restricted for foreign entrepreneurs are the following sectors:
- manufacturing
- insurance services
- IT
- financial services
- tourism
- real estate services.
Restricted for foreign entrepreneurs are the following sectors:
- defense industry
- television, radio
- telecommunications and radio
- air transport
- postal services.
- Corporate income tax - Standard tax rates from 15% up to 17%. Tax returns are filed on an annual basis. Advance income tax payments are made on a quarterly basis
- Municipal business tax rate - from 6.75% up to 10.5%. Advance municipal business tax payments are made on a quarterly basis
- Dividend withholding tax - Standard tax rate 15%
- Interest withholding tax - Standard tax rate 0%
- Royalties withholding tax - 0%
- Capital gains tax - Standard rates from 15% up to 17%
- VAT - Standard tax rate 17% or the reduced rates of 3%, 8%, 14% or tax exempt. Tax returns are filed on a monthly, quarterly or an annual basis
- Personal income tax - from 0% up to 45.78%.
Apart from such traditional business entity types as a limited liability company (Société à Responsabilité Limitée - S.a.r.l.) and a public limited company (Société Anònyme - SA), corporate law in Luxembourg offers to incorporate a company in Luxembourg as:
1. General partnership (Société en Nom Collectif - SNC)
2. Limited partnership (Société en Commandite Simple - SCS)
3.Partnership limited by shares (Société en Commandite par Actions - SCA)
4. Simplified public limited liability company (Société par Actions Simplifiée - SAS)
5. Cooperative company (Société Coopérative - SCOP)
6. European Company (Société Européenne - SE)
7. Branch office (Succursale)
To receive a detailed description of the company formation procedure in Luxembourg and information about documents necessary for company formation in Luxembourg please contact our experts.
1. General partnership (Société en Nom Collectif - SNC)
2. Limited partnership (Société en Commandite Simple - SCS)
3.Partnership limited by shares (Société en Commandite par Actions - SCA)
4. Simplified public limited liability company (Société par Actions Simplifiée - SAS)
5. Cooperative company (Société Coopérative - SCOP)
6. European Company (Société Européenne - SE)
7. Branch office (Succursale)
To receive a detailed description of the company formation procedure in Luxembourg and information about documents necessary for company formation in Luxembourg please contact our experts.
Send a request for company formation in Luxembourg
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Phone: +44 20 8157 4037
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128 City Road,
London, EC1V 2NX
Phone: +44 20 8157 4037
Email: request@pil-services.com
