Company registration in Luxembourg

Registration fee is from 8000 €

Registration period — 3 weeks

Minimum authorized capital - 12 000 EUR

Remote opening — no

Financial statements — yes

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

Advantages of starting a business in Luxembourg

  • The tax system of Luxembourg makes this country a tax haven for business, so sometimes you can find statements that Luxembourg is an offshore for international business.
  • There are special conditions for holding companies that own subsidiaries in other countries. Dividends received by Luxembourg companies as a result of the activities of foreign subsidiaries, as well as profits from the sale of subsidiaries abroad, may be fully exempt from tax. The main condition for the tax exemption is that the Luxembourg company owns at least 10% of the shares in the subsidiary during the year.
  • A key feature of the Luxembourg tax system is its ‘territoriality’. This means that residents of Luxembourg are obliged to pay taxes on their global income, while non-residents and foreign companies are taxed only on the income they earn in Luxembourg itself. 
  • Starting a business in Luxembourg is a real chance to operate throughout Europe without additional restrictions.
  • Company registration in Luxembourg is a great opportunity for investors seeking stability and tax advantages. If you decide 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 preparing documents to registering a company in Luxembourg. We will provide solutions to all legal issues and become your reliable partner for doing business in Luxembourg.

Luxembourg advantages

1

Tax benefits for holdings

2

Opening an account in a local bank

3

No requirements for director's residency

4

High level of asset protection

General Information

Registration Features

The most popular forms of company incorporation in Luxembourg are the limited liability company (SARL) and the joint-stock company (SA). Most often, entrepreneurs choose the SARL company type to open a business in Luxembourg.

Company Name

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

Authorized Capital

In order to register a SARL company in Luxembourg, a minimum authorized capital of 12,000 EUR must be paid.

Director

At least one individual, no residency requirements.

Shareholders

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

Financial Reporting

SARL is required to maintain and submit annual financial statements. An audit of the activities of a SARL company may be conducted if two of the following 3 criteria are met: 1. The company's balance sheet exceeds EUR 3.125 million; 2. Net income exceeds EUR 6.25 million; 3. The number of employees exceeds 50 people.

Taxation

From January 1, 2025, the income tax rates in Luxembourg are as follows: 16% - for companies with taxable income over EUR 200,000; 14% - for companies with taxable income up to EUR 175,000. The standard VAT rate is 17%.

Confidentiality

The public register of companies in Luxembourg is open. Information about the director, shareholder, and the amount of the company's authorized capital is publicly available. There is a separate register of beneficiaries, the information in it is open to the public.

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 the liability of shareholders is limited to the amount of capital they have contributed, the SARL form protects the personal assets of shareholders from business debts. Before registering a company in Luxembourg, you need to make a request to the Companies' Trade Register to verify the name. Once the name is confirmed, the stage of preparing corporate documents can begin.

02

Preparation and collection of documents

Each member of the SARL company must provide a passport and proof of residence (utility bill). Also, at this stage, information about the company's authorized capital, its structure and type of activity is provided.

03

Identification of company participants

Registration of a SARL company in Luxembourg is carried out through a local notary. First, a SARL company account is opened in a local bank and the amount of the authorized capital is deposited. After the bank confirms that the amount has been credited, you can arrange a meeting with a notary and provide him with proof of payment of the company's authorized capital. The notary is responsible for drafting the company's articles of association and registering it in the Commercial Company Register. All members of the company must be identified when signing the documents at the notary.

04

Formation of the share capital (if necessary)

The minimum amount of the authorized capital of a SARL company is 12,000 EUR. The authorized capital must be paid in full before registration. After the company is registered in Luxembourg, the amount of the authorized capital can be used for the needs of the company.

05

Company registration

The process of registering a company in Luxembourg generally takes 2 to 3 weeks from the date of receipt of the required set of documents and depending on the workload of the Trade Register.

06

Receiving of corporate documents

As soon as a company in Luxembourg is registered, the Trade Registry issues ready-made corporate documents with the appropriate marks.

07

Legalization of documents (if necessary)

If necessary, the documents of the SARL company are submitted for legalization and apostille.

08

Delivery of corporate documents

Originals of SARL corporate documents are sent by courier service.

Answers to the Most Common Questions:

Non-residents can register a company in Luxembourg using 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 steps: checking the company name in the Commercial Register, preparing the articles of association, opening a company account in a local bank, paying the authorized capital of EUR 12,000, identifying the company's participants at a local notary and signing the articles of association, registering the company in the Luxembourg Commercial Register.
The cost of opening a company in Luxembourg depends on the company structure, number of participants and type of activity. The cost of registering a SARL company starts from EUR 8,000.
In order to quickly register a company in Luxembourg, it is recommended that all company members personally visit a local notary for identification and signing of statutory documents.

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