Understand the Jurisdictions Setup Requirement Before Proceed Your Company Incorporate in Luxembourg
Are you looking for reasons why should your company incorporate in Luxembourg? Well, here are a few reasons to sway your opinion our way. Well known as the “Grand Duchy of Luxembourg”, it is the smallest and completely landlocked country located in Western Europe. Due to the stability of their economy, it is very attractive for businessmen and entrepreneurs. Luxembourg also has an exclusive low-tax environment for international and local investors.
Luxembourg is a member of both the European Union (EU) and the World Intellectual Property Organization (WIPO). Incorporating a Luxembourg company has no withholding taxes on interest, royalties or technical service fees paid to non-resident companies. Not only that, but a Luxembourg company also holds patents, trademarks and registered designs only have a corporation tax of 6% and enjoys a zero-withholding tax on distribution payments. Thus, becoming the perfect vehicle through which to hold intellectual property rights that can be enforced internationally. Luxembourg also offers virtually unrestricted access to the EU and Shenghen market of 26 developed countries. Luxembourg also has highly skilled labour with a literacy rate of 99% and a technologically advanced rate of 90%, thus increasing the local worker’s efficiency and competency levels. All 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 for its global competitiveness as the country’s economy is best in its technological readiness and has a strong goods market along with a stable macroeconomic environment.
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 must determine and reserve the chosen company name with the Luxembourg Commercial Register. Following that, we can proceed to prepare the company’s deeds of establishment and articles of association. Then we can proceed to open a Luxembourg corporate bank account with a local bank. A detailed business application needs to be submitted to the Ministry of the Economy and Foreign Trade. Documents required are a copy of shareholders’ and resumes, documentary evidence of the applicant’s respectability, etc. Subsequently, registration for Value Added Tax (VAT) and a corporate tax ID at the domain administrator needs to be completed. Following the application submission to the Company Registry Office, we will receive a Company Incorporation Certificate from the Ministry of Commerce. Once all these procedures have been completed, the Trade and Companies Register will arrange for the publication of the incorporation deed in the Official Gazette within two months of the companies’ incorporation.
The company incorporation process 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.