Luxembourg

LUXEMBOURG COMPANY FORMATION

In Luxembourg, the SARL legal structure is the most widely used company form for medium-sized businesses. This type of company suits to all commercial purposes - from the trading of goods to asset management. Luxembourg benefits from favorable tax treaty agreements with more than 50 countries, no withholding taxes on dividends, interest and royalties paid to EU. Luxembourg is an internationally recognized financial centre that offers stable, secure and well-regulated environment for international business. 

General Information on Luxembourg
  • Location: Europe
  • Total population: 576,249
  • Time zone: CET (UTC+1) summer (DST) CEST (UTC+2)
  • Currency: Euro
  • Official language: French, German, and Luxembourgish
What we offer
  • Register your Company in Luxembourg in 1 Week.
  • The most competitive price, in complete transparency.
  • Complete confidentiality.
  • A dedicated manager available throughout the year
Incorporation package price

Our fees for incorporating and registration of a company in Luxembourg are $ 8400.

Annual Renewal Fees is $ 5500.

Incorporation Package includes
  • Professional services for preparation and submission of documents to registrar.
  • Payment of state duty for registration of a company.
  • Acquisition of a registered office.
  • Apostille set of organization documents.
  • All Corporate Documents.
Basic Requirements for Company Formation
  • 3Director and2 Shareholders.
  • Minimum Share Capital: EUR 12,500 (SARL), EUR 31,000 (JSC).
  • Obtaining Tax ID.
  • Arranging Public Notary meeting and procedures.
  • Filing incorporation request with the company registry.
  • Physical Office is required.
  • Appointment of a Secretary.
  • Liaising with the relevant authorities and coordination with the notary.
Additional Services
  • Nominee shareholder: $ 500
  • Nominee director and general power of attorney (apostilled): $700
  • Special power of attorney (apostilled): $ 290
  • Domiciliation (required): $ 3200
  • Accounting services (required): $ 3700
  • Corporate, legal and secretarial administration (required) : $2300
  • Extract from Register: $ 780
  • Certificate of good standing: $ 1100
  • Certificate of incumbency(notarized) : $310
  • Certificate of incumbency (apostilled) : $ 500
  • Set of corporate documents( apostilled) : $ 420
Documents Required
  • Proof of identity (Current valid Passport, National ID card).
  • Proof of Residential Address of the chosen Shareholders and Directors.
  • Resolution to open a bank account, rent an office, appoint first director/shareholder, engage a Phone, Internet & Website service provider, hire a staff member/s.
  • Audited Accounts required.
  • Agreement authorizing to represent the company in commercial negotiations.
  • Resolution issuing a Power of Attorney authorizing to sign documents on behalf of the company.
  • Register of directors/shareholders.
  • M & AA, Certificate of Incorporation, Latest Annual returns and financial statements in case of a Corporate Shareholder.
Important information about Luxembourg company

A Private Limited Liability Company (Société à responsabilité limitée, SARL) in Luxembourg is a corporation whose assets are, in principle, wholly liable for the company‘s liabilities. A SARL is equivalent to a private company limited by shares in the United Kingdom, and a Limited liability company in the United States.  A Limited Liability Company (SARL) in Luxembourg can be formed for the carrying on of commercial or non-commercial purposes. Notwithstanding this, insurance companies as well as financial sector companies are not permitted to be formed in the form of a Limited Liability Company. 

Company name

A Company name of Private Limited Company must necessarily end in “GmbH” or “SARL” and must be approved by the Companies Register. Prior to the formation, it is highly advisable to verify the availability of the name chosen by the shareholders for the new corporation with the Luxembourg Trade Register in order to avoid any confusion with any existing company. Within two or three days from a written request, the Luxembourg Trade Register is able to grant a certificate of free denomination in this respect. 

Corporate Taxation

Since January 1st 2013, a Private Liability Company in Luxembourg is liable to corporate taxation at an annual rate of 29.22%. The said rate consists of the following components: 

Corporate Income Tax

Corporate tax on income exceeding 15,000 EUR is 21%. Corporate tax on income of up to 15,000 EUR is 20%. The minimum payment of corporate income tax for all Private Limited Liability Companies resident in Luxembourg which do not require a trade license and the sum of their assets, securities and bank balance together exceed 90% of their balance sheet total is 3,210 EUR (3,000 EUR plus the 7% solidarity surtax). 

Municipal Business Tax

All businesses resident in Luxembourg (e.g. trading-, industrial-, mining- or craft businesses) as well as the permanent establishments of foreign companies are subject to municipal business tax at a rate of 6.75%. 

Withholding Tax

The dividend distributions of Private Liability Companies in Luxembourg are liable to withholding tax at a rate of 15%. Royalty and interest payments as well as proceeds from liquidation or partial liquidation are not liable to withholding tax in Luxembourg. 

Net Wealth Tax

Private Liability Companies in Luxembourg which have their registered office or place of central management and control in Luxembourg must pay net wealth tax on their total assets, namely assets within and out of Luxembourg. However, for Private Liability Companies not resident in Luxembourg, only assets within Luxembourg will be liable to the said tax. The annual rate of net wealth tax on taxable assets is 0.5%.  For any queries/ additional services please send us an email or reach us on Skype at info@offshore-banking.net.

 
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