Company Formation Luxembourg
Luxembourg is a small European country with a population of more than 500k and a GDP of more than $62 billion. This makes it one of the wealthiest countries per capita in the world. The country borders Belgium, Germany, and France. The capital city is Luxembourg city, which is one of the four capital cities of the European Union. Luxembourg is ranked highly on many measures such as the human development index and the quality of life index. The World Bank ranks it on position 66 of the ease of doing business index.
Top Reasons for Registering a Company in Luxembourg
Many foreign companies have domiciled their businesses in Luxembourg. There are several reasons for this.
- A small country that is highly developed.
- It is a member of the European Union, which opens it to a large market.
- Luxembourg is one of the fastest growing tourism and services countries.
- Luxembourg has a youthful and well-educated population.
- There are several government incentives that make it an ideal place for businesses.
- Luxembourg is one of the safest countries in the world.
The process of Registering a Company in Luxembourg
The process of registering a company in Luxembourg is relatively easy. The following steps are involved:
- A company name – Select a good and unique company name. Find whether it is available on the company registration website.
- Select the type of business you want to set – There are several types of businesses you can register in Luxembourg. The most common is a limited liability company (SARL).
- Articles of association – Draft the articles / memorandum of association. A good lawyer or company registration consultant can help you.
- Deposit the minimum share capital. The bank will give you a blocking certificate.
- Notary meeting – Meet with the notary for the formation of the company. This is the step where your company will be formed.
- Business license and tax – Apply for a business license, tax accounts, and social benefits.
FAQs for Company Registration in Luxembourg
What are the various types of business you can register in Luxembourg?
There are a number of company types that you can register in Luxembourg. The most common types are:
- European company (SE)
- Cooperative company (SC)
- Limited liability company (SARL)
- Societal Impact Company (SIS)
- Public Limited Company (SA)
- Civil company.
What is the minimum share capital for Luxembourg companies?
The minimum share capital for a SARL is EUR 12,000.
What is the corporate tax rate in Luxembourg?
The corporate tax rate in Luxembourg is 19.26%. This is lower than the EU average of 22%. At the same time, there are other taxes that are mandatory. For example, there is a 6% municipal tax, a VAT that starts at 17% and drops to 3% for foodstuff.
Can you use a consultant to register a company in Luxembourg?
Yes. At GFSC, we are the market leader in company registration in Luxembourg. We are among the fastest growing companies and we serve hundreds of companies across the EU every month.
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