Company Registration in Luxembourg by 3E Accounting
Company registration in Luxembourg is defined as a registration statement. It is to be filed by the company with respect to any of its equity securities for its own account. Most entrepreneurs tend to register companies in Luxembourg in the Public company with limited liability or Joint-Stock Company (SA) and Limited Liability Company (SARL). Luxembourg is well known as the “Grand Duchy of Luxembourg” which is a smallest and completely landlocked country. It is located in Western Europe. Many investors choose to set up a company and register a business in Luxembourg because this country is very attractive for foreign businessmen. This is because of the stability in the economy. Luxembourg also provides a very exclusive low-tax environment for international and local investors.
There are lots of advantages to company registration in Luxembourg. Registering a Luxembourg company has no withholding taxes on interest, royalties or technical service fees paid to non-resident companies. Besides, company registration in Luxembourg also holds patents, trademarks and registered designs has tax benefits as royalty income on these rights only suffers corporation tax of 6% and enjoys zero withholding tax on distribution payments. This is because Luxembourg is a member of both the European Union (EU) and the World Intellectual Property Organization (WIPO). Thus, a Luxembourg company is the perfect vehicle through which to hold intellectual property rights that can be enforced internationally.
As a founding member of the EU, a registered business in Luxembourg also offers virtually unrestricted access to the EU and Schengen area market of 26 developed countries. Therefore, a foreign-owned company can invest in every business sector without restriction. Finally, Luxembourg boasts highly skilled labour with a literacy rate of 99% and a technologically advanced rate of 90%. Of course, it makes Luxembourg employees become efficient and productive in every aspect. All of these advantages have successfully raised the country’s name in the eyes of the world where Luxembourg has been ranked 18th out of a total of 141 countries. The rank is for its global competitiveness as the country’s economy is best in its technological readiness. It is also because Luxembourg has a strong goods market along with a stable macroeconomic environment.
Luxembourg Business Necessities
Registration and management of the company take place in Luxembourg in accordance with the Law “On Commercial Companies”. There are a few steps when registering a company in Luxembourg. Firstly, we have to determine and reserve the company name with the Luxembourg Commercial Register. Secondly, we prepare the company’s deeds of establishment and articles of association. Next, we need to open a Luxembourg corporate bank account with a bank.
After that, submits a detailed business application to the Ministry of the Economy and Foreign Trade. The application including such as a copy of shareholders’ and resumes, documentary evidence of the applicant’s respectability and so on. Subsequently, we need to register for Value Added Tax (VAT) and a corporate tax ID at the domain administration. After submitting an application to the Company Registry Office, we will receive a Company Incorporation Certificate from the Ministry of Commerce.
Lastly, the Trade and Companies Register then arranges for the publication of the incorporation deed in the Official Gazette within 2 months of the company. Then we will receive a company kit that includes original Luxembourg corporate documents and unopened bank correspondence.
The process to register a company in Luxembourg is quite simple when broken down but it can also be quite tedious and complicated. Should you require any assistance or services, we provide these services to ensure a smooth integration into the economy of Luxembourg. Contact us for more information.