Introduction to setting up a branch in Luxembourg
Luxembourg has a range of incentives that make the country popular with foreign investors. These include low tax rates, neutrality and a geographical position advantageous for trading with European and other overseas markets. The parent company of the branch must obtain a trading permit from the Economy Minister before the branch can commence trading.
What are the accounting requirements for a Luxembourg Branch?
The branch must register with the relevant Tax Authorities in Luxembourg in order for appropriate taxation to be calculated.
The filing of VAT returns either monthly, quarterly or annually depends on the turnover of the branch, and tax returns should be filed annually.
The parent company should keep the accounts of the branch in accordance with the Luxembourg Commercial Code and the Law on commercial companies.
What are the formalities regarding Luxembourg branches?
– A copy of the parent company’s Certificate of Incorporation
– A copy of the Memorandum & Articles of Association of the parent company
– A registered address in Luxembourg
– A copy of the parent company’s Certificate of Good Standing
– Nominate a representative of the Luxembourg branch
The documents above are required by the Trade and Companies Register in order for branch registration.
Documents may need to be translated, however Luxembourg is quite flexible on this aspect and accepts French, Germany and English documents without translation.
What office facilities are available when registering a branch?
Luxembourg offers the following office facilities to branches:
– Registered offices provide a registered address for branch correspondence
– Virtual offices provide off-site communication with facilities such as telephone, fax and mail forwarding
– Serviced offices are ready for immediate occupation and provide all the essential business facilities.
We will handle every aspect of the branch formation for you. Using our expert knowledge we can offer a branch formation package in which we take care of branch registration, issue of the certificates of registration, local directors, local representative and place of business in Luxembourg, tax registration, VAT registration, and translation of documents (if required).
Our unique one stop solution for all European formation requirements also offers formation packages to set up multiple branches. The benefits for establishing multiple branches include further increased exposure and global presence, and we can organise everything for you.
A summary of Luxembourg Corporate Taxes is available here.