Luxembourg Company Formation
Although small, Luxembourg offers significant opportunities for business on the European continent. It occupies a central position on the map and boasts excellent connections with the EU markets. The trip from Luxembourg to popular business centres like Brussels, Paris and Frankfurt takes only several hours. The country is economically stable and open for direct international investments. These are the main reasons for entrepreneurs to opt for setting up companies in Luxembourg. The incorporation process is simplified for both national and international applicants. Once you obtain the necessary documents, the process is uncomplicated and smooth.
Open a Luxembourg Investment Fund
Luxembourg is a popular centre of finance with thousands of registered funds thanks to its favourable economic background and legislative framework encouraging foreign investments. After the US, it has the largest market of funds worldwide with numerous open-ended funds for retail investors. Most entrepreneurs opt for UCITS, or undertakings for collective investment in transferable securities.
Luxembourg is popular worldwide as a prime location for establishing a fund. During the period 1959 – 2010 the country saw the opening of more than 3500 funds with net assets exceeding 2 trillion Euros. The national authorities welcome foreign investors to set up funds in the country which is conveniently located in close proximity to major European markets. Furthermore, Luxembourg offers a well-prepared, highly qualified workforce, stable economy and sound political environment.
The legislation in Luxembourg recognises three types of investment funds: i) collective investment undertaking (UCI); ii) UCI in transferable securities (UCITS), a preferable option for retail investments, and iii) specialised funds (SIF).
The above fund categories are not subject to taxes on capital gains and income generated in Luxembourg and do not pay stamp duty on issues or transfers of shares. Our company incorporation agents can assist you in opening an investment fund of any category and provide you with the documents required for its operation.
Reasons to invest in Luxembourg
On the backdrop of global financial and economic crisis, Luxembourg managed to maintain stability. Its economy is supported by various types of businesses: a proven winning combination for the prosperity of the country. The most significant and developed fields of business include manufacturing, financial services, retail, communications, logistics, electronic commerce and import/export.
Luxembourg’s business-friendly legislation and tax policy are the main factors attracting entrepreneurs that want to establish a base of operations in a connected and accessible European business centre. International businesses in the country have even more privileges due to the numerous treaties for double taxation concluded with many countries all over the world.
These arrangements protect income generated by foreign sources from double taxation thus eliminating the possibility of having to pay equivalent taxes in two different countries.
Another advantage of investing in Luxembourg is the availability of qualified multilingual workforce. Furthermore, a significant percentage of the employed residents of the country are actually commuters with workplaces located outside its borders. This is another positive sign that the country welcomes foreign investments and international cooperation. Last but not least, the high living standards in Luxembourg attract both business entrepreneurs and employees. Even though this is one of the smallest countries in the world, it is classed among the wealthiest. We also offer assistance in opening businesses in other countries across Europe.
Requirements for setting up a business in Luxembourg
All companies established in the Luxembourg need particular documents verifying the legal entity formation in the Duchy. First, the company owners must prepare a Memorandum of Association, specimen signatures, copies of personal identification documents and other papers. Then you need to arrange for certified translations of all documents and submit them for notarization. The Memorandum of Association will be published in the Official Gazette of Luxembourg.
Investors also need to open an account in a local bank to deposit the minimum required share capital. The proposed company name needs to be verified for compliance with the country’s legal requirements. The verification is performed at the Trade Register. Our specialists can assist you with the completion of all these steps of company set-up.
All companies registered in Luxembourg need to have headquarters for performance of their business activities. We are in partnership with resident lawyers who can help foreign investors open virtual offices at prestigious business addresses.
Types of companies in Luxembourg
Different types of companies can be set up in the country. The choice of structure is determined by the business purposes of the investor. Some types of entities are more appropriate for small to medium sized operations, while others are suitable for large businesses or corporations interested in expanding their activities to include Luxembourg. The national law on companies recognises the following company categories: public / private limited liability (S. A. and S. A. R. L., respectively), general/limited / shares-limited partnership (S. E. N. C. / S. E. C. S. / S. E. C. A.) and cooperative company (S. C.).
The public and private limited liability companies are among the most commonly chosen business options in Luxembourg. They have a set minimum capital and the public LLC needs to fulfil certain requirements with respect to its managing bodies and supervisors.
Opening a branch is a suitable option for foreign companies seeking stronger market presence. The newly established branch shall not be considered as an entity in the country as it will be completely dependent on the international mother company based abroad.
Subsidiaries are another company option popular among foreign entities. In contrast to branches, they possess a legal personality; therefore the mother company holds no liability with respect to their actions.
The Grand Duchy offers the perfect combination of lucrative business environment, economic stability and plenty of opportunities for entrepreneurs. If you intend to incorporate a company in the country, our specialists can assist you from the first steps of company formation.
Our qualified team will help you to establish a company in the fastest way possible and to start operating your business. We also offer other company services such as accounting. For questions, please, get in touch with our company incorporation agents in Luxembourg.