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Luxembourg

Legal form:

LLC, SA, SARL

Delivery:

3 days

Price: $

1,500 USD

Payment methods:

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Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Abbreviation

Country

Luxembourg

Email

Phone

Listing
Open website
UK comapny formation (1).webp

About

Luxembourg

Capital
Official languages
Population 
Currency

ISO 4217

Luxembourg City

French, German, and Luxembourgish

626,108 (as of 2019)

Euro

EUR

FAQ



Q: What is the process for forming a company in Luxembourg?

A: The process for forming a company in Luxembourg involves several steps. The first step is to choose a company name and then draft the articles of association. The articles of association will specify the name of the company, the purpose of the company, the amount of share capital, the number of shares, and the rights and obligations of the shareholders. Once the articles of association are drafted, they must be notarized by a Luxembourg notary. After notarization, the company must be registered with the Luxembourg Trade and Companies Register.


Q: What types of companies can be formed in Luxembourg?

A: There are several types of companies that can be formed in Luxembourg, including sole proprietorships, partnerships, and corporations. The most common type of company formed in Luxembourg is the Société Anonyme (SA), which is similar to a public limited company.


Q: What is the minimum share capital required to form a company in Luxembourg?

A: The minimum share capital required to form a company in Luxembourg is €12,000 for an SA. However, this requirement may be different for other types of companies.


Q: Do I need to have a physical office in Luxembourg to form a company?

A: Yes, a physical office in Luxembourg is required to form a company. The company must have a registered office address in Luxembourg, and this address must be used for official correspondence.


Q: What are the tax implications of forming a company in Luxembourg?

A: Luxembourg has a favorable tax system for companies, with a low corporate tax rate of 24.94%. Additionally, Luxembourg has signed tax treaties with several countries, which can help to reduce the overall tax burden.


Q: How long does it take to form a company in Luxembourg?

A: The time required to form a company in Luxembourg depends on various factors, such as the type of company and the complexity of the company structure. In general, it can take anywhere from a few weeks to several months to form a company in Luxembourg.


Q: What are the ongoing compliance requirements for companies in Luxembourg?

A: Companies in Luxembourg are required to comply with various ongoing compliance requirements, such as filing annual financial statements and maintaining a registered office in Luxembourg. Additionally, companies may be subject to other requirements based on their specific business activities.


Q: Can a foreigner form a company in Luxembourg?

A: Yes, foreigners are allowed to form companies in Luxembourg. However, they may be subject to additional requirements, such as obtaining a residency permit in Luxembourg or appointing a local director.

Economy

Luxembourg is a small country with a big economy. According to the World Bank, Luxembourg has a GDP of $63.3 billion, making it the world’s second-richest country per capita. The country’s economy is largely based on the financial services sector, which accounts for more than a third of its GDP. Luxembourg also has a strong industrial sector, with steel and chemicals being the main industries. The country also has a thriving tourism industry, with more than 2 million visitors each year. Luxembourg has a low unemployment rate of 5.2%, and its inflation rate is 1.3%. The country also has a strong balance of payments, with a current account surplus of $2.3 billion in 2019. Overall, Luxembourg has a strong and stable economy, making it an attractive destination for businesses and investors.

Taxation

Luxembourg has a complex tax system with different rates and rules for corporate and personal taxation. Here is an overview of the tax system in Luxembourg:


Corporate taxation:

- The standard corporate income tax rate in Luxembourg is 24.94%, which applies to both resident and non-resident companies.

- There is a reduced rate of 15% for companies with taxable income up to €175,000.

- Luxembourg also offers favorable tax regimes for certain types of companies, such as holding companies and intellectual property companies.

- Capital gains are generally taxed as regular income, but there are exemptions available for certain types of gains.


Personal taxation:

- Luxembourg residents are subject to personal income tax on their worldwide income, with a progressive tax rate that ranges from 0% to 45% depending on income level.

- Non-residents are only taxed on their income sourced from Luxembourg.

- Luxembourg also has a net wealth tax, which applies to individuals with net worth over €1.5 million.

- Capital gains are generally taxed as regular income, but there are exemptions available for certain types of gains.


Tax payment process and calendar:

- The tax year in Luxembourg is from January 1st to December 31st of the same year.

- Taxpayers are required to file their tax returns by May 31st of the year following the tax year, or by July 31st if filing electronically.

- Corporate income tax payments are made annually, with a deadline of June 30th of the year following the tax year.

- Personal income tax payments are made on a quarterly basis, with deadlines of March 10th, June 10th, September 10th, and December 10th.

- Net wealth tax payments are made annually, with a deadline of January 31st of the year following the tax year.

- Late tax payments are subject to penalties and interest charges.


Luxembourg is known for its favorable tax regime for international companies and has been subject to international scrutiny in recent years. The country has been working to improve its international tax compliance and transparency standards, including by signing tax information exchange agreements with other countries.

Company incorporation application form

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