Introduction & Benefits How to set up Luxembourgish SARL Requirements and considerations Luxembourgish company registration Incorporation Ltd assistance Talk with us now
Society With Limited Responsibility in Luxembourg
The main advantage of having a company registered in Luxembourg is having a favorable tax treaty agreements with 57 countries and the status of internationally recognised financial centre. Continue reading to find out what exactly are the full benefits of setting up a society with limited responsibility in Luxembourg.
Request a consultationIntroduction & Benefits
Setting up a company is a significant step for anyone, and choosing Luxembourg is an excellent way to mark your presence in the European Union (EU). While expanding your company is exciting, it can also be stressful to build a new business in a place where you may not be familiar with local laws. Instead of figuring it out alone, Incorporation Ltd can help.
The main advantages of having a company in Luxembourg
- Reputable banking industry;
- Internationally recognised financial centre;
- Double tax treaties;
- Attractive business environment.
Very competitive company taxation at 28.59% which is made up of a corporate tax of 21.00% plus an unemployment surcharge of 0.84% and a municipal business tax of 6.75% (for Luxembourg City).
Here is everything to know about setting up an Luxembourg company as a headquarters or a holding company for your business in European Union.
How to set up an Luxembourg Society With Limited Responsibility
The Luxembourgish society with limited responsibility (SARL, also known as S.à r.l. for French société à responsabilité limitée) is the legal entity most preferred by entrepreneurs for Luxembourgish company setup. A society with limited responsibility in Luxembourg requires at least 2 shareholder, who can either be an individual or a corporate of any nationality. There may be only one shareholder at the time of incorporation since it is possible for one shareholder to own all of the shares.
Registration requirements and considerations
Several considerations must take place before registering a company in Luxembourg.
Business registration
Private Limited Companies and Public Limited Companies have to register with the Luxembourg registrar of Companies. Details of the incorporation would be published in the Official Gazette. This gazette is an electronic gazette which is known as the Recueil Electronique des Sociétés et Association.
One or two shareholder(s)
Shareholders have to be appointed as per the requirements of the company. For a private limited company, the number of shareholders varies between one to 100.
Directors
The appointment of directors must be in accordance with the requirements of the respective law. Directors are appointed by shareholders. A public limited company must have minimum of three directors. A special limited partnership must have one general partner to run the partnership. For a private limited company, there has to be one director. There is no limit on the number of directors that run this company.
Share capital
An applicant going for the process of Luxembourg Company Registration must have minimum paid up capital to form the company. The minimum paid up capital for forming the company us EUR 12,000. However, the requirement for a public company is more. A public company requires minimum of EUR 31,000 for forming a company.
Luxembourgish company advantageous trading
Traditionally, the country has followed an open economic policy promoting international trade which has attracted foreign capital investment in the Duchy evidenced by a number of significant treaties leading towards more advantageous economical unification.
Steps to register the company
A brief overview on what you'll encounter while registering Luxembourgish SARL.
- Deposit the share capital of EUR 12,000 in a corporate bank account;
- The incorporation meeting has to occur with the shareholders and the directors;
- Drawing up the articles of association of the company;
- Ducments are filed with the Luxembourg Registrar of Companies (Registrar of Companies and Commerce);
- Publication in the Official Gazette;
- Register for VAT;
There can be additional requirements based on various circumstances. Contact Incorporation Ltd today and get hassle-free consultation on the way forward with your company incorporation in Luxembourgish jurisdiction.
Luxembourgish company registration by Incorporation Ltd
Incorporation Ltd provides a holistic approach when it comes to doing business in Luxembourg. The offer among other nuances includes:
- Consulting in which circumstances Luxembourg is beneficial;
- Required document write-up;
- Explanation of corporate bank account for the company;
- Introduction on how accountancy will be managed;
- Solving local phone issues;
- Annual commitment reminders (if long term corporation is agreed).
Once everything's agreed and setup has commenced, you'll have the company at your disposal at the instant Luxembourgish government approves the application of registration.
Your business growth and Incorporation Ltd assistance
Once start operating your business, you can enjoy multiple benefits. A company can run independently from your parent company, protecting the parent company from any costly litigation or mistakes. An Luxembourgish company has full rights and protections in any European Union country. Let us know when you're ready for a journey on registering Luxembourgish company.