Luxembourg is a very attractive prospect to foreign investors looking to establish a company. The country is a multi-lingual business hub located in central Europe, with a developed infrastructure and one of the lowest tax rates in the EU.
There are also additional tax incentives for foreign investors. The setting up of businesses in Luxembourg is regulated by the Law of Commercial Companies and articles 1832 to 1873 of the Civil Code.
– The minimum share capital for an S.à r.l. (Private Limited Company) is € 12.000
– The minimum share capital for an S.A. (Public Limited Company) is € 30.000 – It is possible to constitute the company with ¼ share capital paid-in (€ 7.500)
– The Memorandum & Articles of Association of the subsidiary
– The resolution of the parent company detailing its decision to form the subsidiary
– A registered address in Luxembourg
In order to register the subsidiary, the documents shown above must be bought before a public Notary in Luxembourg and then filed with the Trade and Companies Register.
All required documents must be officially notarised and may need to be translated. Luxembourg is however very flexible and will accept documents in English, French or German.
The subsidiary must register for tax and VAT by declaring itself to the Direct Taxation Authority. A VAT number and a Company Registration number will then be issued.
VAT returns should be filed either annually, quarterly or monthly, depending on revenues.
Corporate tax returns are filed annually.
Annual accounts are filed electronically each year.
Please contact us in order to discuss your accounting requirements.
We will handle every aspect of the Company formation for you. Using our expert knowledge we can offer a company formation package in which we take care of company 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 companies. The benefits for establishing multiple companies include further increased exposure and global presence, and we can organise everything for you.
A summary of Luxembourg Corporate Taxes is available here.