Luxembourg

Original price was: $ 15,199.00.Current price is: $ 12,900.00.

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Incorporation Details

Fee schedule
Country First year Annual fee
Luxembourg US$ 12,900 US$ 11,900

*** To maintain good standing, your Luxembourg company must pay an annual renewal fee. This fee is a flat rate and free from hidden charges.

What’s included for 12900

● Incorporation of Company
● Luxembourg Government Registration Fees
● Registered Office for 1 year
● Registered Agent for 1 year
● Certificate of Incorporation
● Memorandum of Association
● Register of Members
● Membership Certificates
● Lifetime support

Why Luxembourg

Luxembourg is one of the world’s leading financial hubs and offers a business-friendly environment, attractive tax benefits, and a stable economy. Many multinational corporations, investment funds, and tech startups choose Luxembourg for incorporation due to its strategic location, strong legal framework, and favorable taxation policies.

Benefits of opening a company in Luxembourg

Strategic Location in Europe – Located at the heart of the EU, Luxembourg provides easy access to European markets.

Business-Friendly Environment – Ranked as one of the most competitive economies with efficient regulatory frameworks.

Low Corporate Tax & Tax Incentives – Many tax exemptions, deductions, and favorable treaties for international businesses.

Strong Banking & Financial Hub – Home to 130+ banks, investment funds, and wealth management firms.

Political & Economic Stability – One of the most stable economies in the world with AAA credit ratings.

Flexible Corporate Structures – Various business entity options suited for multinational corporations, investment funds, and startups.

EU Membership & Trade Access – Free trade access within the European Union and a strong global trade network.

Types of Business Entities in Luxembourg

1️⃣ Société à Responsabilité Limitée (SARL) – Private Limited Liability Company

  • Minimum share capital: €12,000
  • Ideal for small and medium-sized businesses (SMEs)

2️⃣ Société Anonyme (SA) – Public Limited Company

  • Minimum share capital: €30,000
  • Suitable for large enterprises & listed companies

3️⃣ Société par Actions Simplifiée (SAS) – Simplified Joint-Stock Company

  • Offers flexibility in governance
  • Commonly used by startups & tech firms

4️⃣ Société en Commandite Spéciale (SCSp) – Special Limited Partnership

  • No minimum capital required
  • Popular for investment funds & private equity

5️⃣ Soparfi (Société de Participations Financières) – Holding Company

  • Used for investment holdings
  • Tax-efficient structure for multinational corporations

6️⃣ Investment Fund Structures

  • Luxembourg is a global leader in investment funds such as UCITS, SICAV, SICAR, RAIF, and SIF funds.
Incorporation Procedure

Documents from individuals:

  • A Clear and Current/ Valid copy Driver’s License ID, (To be notarized)
  • An original Bank reference letter ( On the bank Official Letterhead)
  • An original Professional reference letter from an Accountant or Lawyer ( On the Professional’s Official Letterhead)
  • A copy of a Current Utility Bill, as proof of residential address (To be notarized)
  • Application Form (we will provide).

Documents from legal entities:

  • Copy of the Certificate of Incorporation;
  • Copies of incorporation documents (Articles of Association and Memorandum of Association).
  • Register of directors/shareholders/members

Note: Where documents are in a language other than English, a certified translation of the full document into English must be provided, with the original document.

Company Structure
  • Minimum Number of Directors/Managers: One, who may be a natural person or a corporate body.
  • Minimum Number of Shareholders/Members: One, which can be the same entity as the director.
  • Beneficial Owners: Beneficial owners of Luxembourg companies are partially public, but not all details are accessible to the general public.
Timeline

Once we have received all the required identification documents, the company formation process will take approximately 7 working days subject to compliance review.

Taxation Policies

1️⃣ Corporate Income Tax (CIT)

Standard Corporate Tax Rate

  • The corporate income tax (CIT) rate is 17% on taxable profits.
  • However, companies also pay a solidarity surcharge (7%) on CIT, making the effective CIT rate 19%.

Municipal Business Tax (MBT)

  • Luxembourg companies must also pay a Municipal Business Tax (MBT).
  • The rate varies by location; in Luxembourg City, the MBT is 6.75%.
  • Total effective tax rate (CIT + MBT) in Luxembourg City is 24.94%.

Exemptions & Deductions

  • R&D incentives allow deductions on qualifying research & innovation expenses.
  • Investment tax credits may apply to eligible businesses.

2️⃣ Withholding Taxes

📌 Dividends

  • 15% withholding tax (WHT) applies to dividends paid to shareholders.
  • Exemptions: If the recipient is an EU parent company (under the EU Parent-Subsidiary Directive) or a treaty partner, WHT may be reduced or exempt.

📌 Interest Payments

  • No withholding tax on most interest payments.

📌 Royalties

  • No withholding tax on royalties paid to foreign entities.

📌 Service Payments

  • No withholding tax on payments for services, except in specific cases.

3️⃣ Value-Added Tax (VAT)

Standard VAT Rate

  • 17% (Lowest standard VAT rate in the EU).

Reduced VAT Rates

  • 14% for entertainment, some wines.
  • 8% for gas, electricity, and certain services.
  • 3% for essential goods (food, medicines, books, etc.).

VAT Registration

  • Companies with turnover > €35,000 must register for VAT.
  • VAT returns are filed monthly, quarterly, or annually depending on turnover.

4️⃣ Taxation of Holding Companies

Luxembourg is famous for its Société de Participations Financières (SOPARFI) regime, which benefits holding companies:

No tax on dividends & capital gains (if the Parent-Subsidiary Directive applies).
No withholding tax on interest & royalties.
Double Tax Treaties (Luxembourg has over 80 tax treaties).

Accounting and Audit Requirements

1. Accounting Requirements

Mandatory Accounting Records

  • All companies in Luxembourg must maintain accurate financial records.
  • Books must include balance sheets, profit & loss statements, and general ledgers.

Accounting Standards

  • Luxembourg companies must follow:
    • Luxembourg Generally Accepted Accounting Principles (Lux GAAP) OR
    • International Financial Reporting Standards (IFRS) (if required).

Bookkeeping & Retention Period

  • Companies must keep accounting records for at least 10 years.

2. Financial Reporting Requirements

📌 Annual Financial Statements

  • All companies must prepare and file annual financial statements with the Luxembourg Business Register (LBR).
  • Filing Deadline: 7 months after the financial year-end.

📌 Who Must File Financial Statements?
 ✔ All companies (SAs, SARLs, SCAs, etc.).
Small companies may prepare simplified accounts.
Large companies must publish full financial statements.

📌 Exemptions for Small Companies
 A company is considered “small” if it meets 2 of these 3 conditions:

  • Balance sheet total: ≤ €4.4 million
  • Net turnover: ≤ €8.8 million
  • Employees: ≤ 50 employees

Small companies may:

  • Submit simplified financial statements.
  • Be exempt from statutory audits.

3. Audit Requirements

🔹 Who Needs an Audit?

  • Large companies (meeting 2 of the 3 criteria):
    • Balance sheet total: > €20 million
    • Net turnover: > €40 million
    • Employees: > 250 employees
  • Public Interest Entities (PIEs) must also be audited.
  • Financial institutions (banks, insurance, investment funds) always require audits.

Contact us for complete assistance in opening an offshore company in Luxembourg.

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Follow the right path with the right procedure

STEP 01

Select package and submit KYC documents

STEP 02

Sign application forms and do due diligence requirements

STEP 03

Submit the application and receive corporate documents

STEP 04

Annual registration renewal to keep business in good standing