Company Registration in Luxembourg

Registration fee is from 8000 €

Registration period — 4 weeks

Minimum authorized capital - 12,000 EUR

Remote opening — no

Financial statements — yes

Luxembourg (the Grand Duchy of Luxembourg) is a small state in Western Europe considered one of the most attractive countries in Europe for doing business. Opening a company in Luxembourg is a strategically sound decision for entrepreneurs seeking favorable tax conditions, a stable economy, and access to European markets. It is precisely thanks to its favorable tax regime that Luxembourg is an ideal place for registering international trading companies and holdings.

Why register a holding company in Luxembourg

  • Luxembourg remains one of Europe's leading holding centers thanks to its participation exemption regime: dividends and profits from the sale of shares in a subsidiary are fully exempt from taxation, provided the shareholding is at least 10% and held for a minimum of one year.

  • Combined with an extensive network of double taxation treaties and its status as an EU financial center, this makes Luxembourg a traditional choice for structuring international assets and SOPARFI holdings.

Advantages of starting a business in Luxembourg

Luxembourg's tax system makes the country a tax "haven" for business, which is why it is sometimes described as an offshore destination for international business.

Special conditions exist for holding companies that own subsidiaries in other countries. Dividends received by Luxembourg companies from the operations of foreign subsidiaries, as well as profits from the sale of subsidiaries abroad, can be fully exempt from tax. The main condition for this tax exemption is that the Luxembourg company must hold at least 10% of the shares in the subsidiary for a period of one year.

A key feature of Luxembourg's tax system is its "territoriality." This means that Luxembourg residents are required to pay tax on their worldwide income, while non-residents and foreign companies are taxed only on income earned within Luxembourg itself.

Starting a business in Luxembourg is a real opportunity to operate throughout Europe without additional restrictions.

Registering a company in Luxembourg is an excellent opportunity for investors seeking stability and tax advantages. If you have decided to open a company in Luxembourg, the state will provide you with one of the best systems for protecting corporate information and a high level of confidentiality for business owners.

Planning to open a company in Luxembourg? Contact Maira Consult and get full legal support, from document preparation to company registration in Luxembourg. We will handle all legal matters and become your reliable partner for doing business in Luxembourg.

Luxembourg advantages

1

Tax benefits for holding companies

2

Opening an account with a local bank

3

No residency requirements for the director

4

High level of asset protection

5

Extensive network of double taxation treaties and status as a leading financial center of the EU

General Information

Registration Features

The most popular company formation types in Luxembourg are the private limited liability company (SARL) and the public limited company (SA).

Entrepreneurs most often choose the SARL type to start a business in Luxembourg.

Company Name

A company name in Luxembourg must contain a word, phrase, or abbreviation indicating its legal form, such as "SARL" or "SA".

Authorized Capital

To register a SARL company in Luxembourg, a minimum share capital of EUR 12,000 must be paid in.

Director

At least one individual is required, with no residency requirements.

Shareholders

At least one individual or legal entity is required, with no residency requirements.

Financial Reporting

A SARL company is required to prepare and file annual financial statements. An audit of a SARL company's activities may be required if two of the following three criteria are met:

  1. The company's balance sheet exceeds EUR 3.125 million;
  2. Net revenue exceeds EUR 6.25 million;
  3. The number of employees exceeds 50.

Taxation

Corporate income tax (CIT) rates in Luxembourg are:

  • 16% for companies with taxable income above EUR 200,000
  • 14% for companies with taxable income up to EUR 175,000
  • This rate is supplemented by a solidarity contribution to the employment fund (7% of the CIT amount) and a municipal business tax (around 6.75% in Luxembourg City, depending on the municipality).
  • Taking both surcharges into account, the effective corporate income tax rate for companies in Luxembourg City is approximately 24.94% (income above EUR 200,000) or 22.80% (income up to EUR 175,000). The standard VAT rate is 17%.

Confidentiality

Luxembourg's Commercial Register is open to the public. Information on a company's director, shareholder, and share capital amount is publicly available. There is also a separate register of beneficial owners, and the information in it is open to public access.

Stages of company registration

01

Choosing the name and form of the company

For a non-resident, registering a company in Luxembourg in the form of a SARL (Société à Responsabilité Limitée) is the most convenient solution. Since shareholders' liability is limited to the amount of capital they have contributed, the SARL form protects the shareholders' personal assets from business debts. Before registering a company in Luxembourg, it is necessary to submit a request to the Trade and Companies Register to verify the name. Once the name has been confirmed, the stage of preparing corporate documents can begin.

02

Preparation and collection of documents

Each participant of a SARL company must provide a passport and proof of residential address (a utility bill). At this stage, information about the company's share capital, its structure, and its type of activity is also provided.

03

Identification of company participants

Registration of a SARL company in Luxembourg is carried out through a local notary. First, a company account is opened for the SARL at a local bank, and the amount of the share capital is deposited. Once the bank confirms that the amount has been credited, a meeting with the notary can be arranged, at which proof of payment of the company's share capital is provided. The notary is responsible for drafting the company's articles of association and registering them with the Trade and Companies Register. All company participants undergo identification when signing the documents at the notary's office.

04

Formation of the share capital (if necessary)

After the company is registered in Luxembourg, the amount of the share capital may be used for the company's needs.

05

Company registration

The process of registering a company in Luxembourg generally takes 2 to 3 weeks from the date the necessary set of documents is received, depending on the workload of the Trade Register.

06

Receiving of corporate documents

Once the company in Luxembourg is registered, the Trade Register issues the finished corporate documents with the relevant markings.

07

Legalization of documents (if necessary)

If needed, the SARL company's documents are submitted for legalization and apostille certification.

08

Delivery of corporate documents

The original corporate documents of the SARL company are sent by courier service.

Answers to the Most Common Questions:

Non-residents can register a company in Luxembourg through the standard procedure without additional requirements (such as a work permit or residence permit). The process of registering a SARL company consists of the following stages: checking the company name in the Trade Register, preparing the articles of association, opening a company account with a local bank, paying up the share capital of 12,000 EUR, identifying the company's members with a local notary and signing the articles of association, and registering the company in the Luxembourg Trade Register.
The cost of opening a company in Luxembourg depends on the company structure, number of members, and type of activity. The cost of registering a SARL company starts from 8,000 EUR.
In order to register a company in Luxembourg quickly, it is recommended that all company members personally visit a local notary for identification and signing of the articles of association.

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