Private limited liability company (SARL): EUR12,000, which must be fully paid up.
In Luxembourg, a corporation is permitted to issue registered shares. Corporate shares may be issued with or without voting rights, depending on the company’s discretion. Corporate registered shares must be logged in the corporation’s log book. Registered shares can only be transferred by issuing a transfer statement which is authorized by both the transferor and transferee.
Luxembourg corporations can also issue bearer shares which are usually transferred by delivery of bearer certificates. Whoever is in possession of a bearer share certificate is the owner.
At least one director must be appointed. The director can reside in any country and be a private person or corporate entity.
At least one shareholder is required. The shareholder can reside in any country and be a private person or corporate entity.
The corporate income tax (CIT) rate has been reduced from 19% (2017) to 18%, leading to an overall tax rate for companies of 26.01% in Luxembourg City (taking into account the solidarity surtax of 7% and including 6.75% municipal business tax rate applicable and which may vary depending on the seat of the company). This measure was planned in order to strengthen the competitiveness of companies.
Accounting is mandatory for corporations. Records must be kept of the corporation’s finances and business transactions, and maintained so they are always up-to-date.
Office Address and Local Agent:
Luxembourg corporations must have both a local office and local registered agent in order to receive process server requests and official notices. The corporation is allowed to have a main address anywhere in the world.
Double Taxation Agreements:
Luxembourg has concluded more than 70 double tax treaties and nearly 20 such agreements are pending for approval. A Convention for the avoidance of double taxation is advantageous for foreign investors from that country who want to open a business in Luxembourg or vice versa. Luxembourg has signed double tax treaties with the following countries: Armenia, Austria, Azerbaijan, Bahrain, Barbados, Belgium, Brazil, Bulgaria, Canada, china, the Czech Republic, Denmark,...