Set up Company in Luxembourg
Company formation in Luxembourg includes some standard actions such as drafting the articles of association, specimen signature, special forms from the company registration office and passport copies. When setting up a company in Luxembourg, it is mandatory to deal with public notary procedures and translation of documents. It is mandatory in some cases to have a registered office for company formation in Luxembourg. Nevertheless, opening a bank account in Luxembourg and hiring a local accountant are recommended for all new companies setup in Luxembourg.
TYPES OF COMPANIES
- Limited Liability Company (Luxembourg Societee a ResponsabiliteLimitee - SARL) – this is the most popular form of business structure in Luxembourg when it comes to foreign investments. No more than 40 shareholders can contribute to company formation in Luxembourg and the required capital is at least 12,400 EUR. The liability of the founders is limited to the extent of their contribution. Participation certificates cannot be freely transferred.
- Joint Stock Company (Luxembourg SocieteAnonyme - SA) – large businesses are better structured in a joint stock corporation. Company formation in Luxembourg as far as this type of business is concerned requires at least two shareholders and a minimum share capital of 31,000 EUR.
INCORPORATION PROCEDURE IN LUXEMBOURG
Company formation in Luxembourg is rather simple and foreign investors find it very easy to set up a company in Luxembourg. It is mandatory for company registration in Luxembourg that the articles of association and all other corporate documents are written in French or German. A bank account is compulsory for the initial deposit of the capital when the company formation in Luxembourg starts.
Company registration in Luxembourg is followed by VAT registration in Luxembourg for companies that will perform commercial activity. VAT registration in Luxembourg is completed by a declaration at the Administration de l'Enregistrementet des Domaines and followed by a VAT identification number which is issued by the tax authorities.
Before company registration in Luxembourg, a legal representative must go to a bank in Luxembourg and open a bank account where the founders must deposit their contributions. The company manager can have access to the deposited funds after the company registration in Luxembourg.
Company formation in Luxembourg is completed after registration. When beginning the business activity, a company may need employees. Workforce in Luxembourg is well-trained and employers can find the best personnel through specialised websites and recruitment agencies. An employee in Luxembourg earns approximately 3,000 EUR per month as the average salary.
ECONOMY OVERVIEW IN LUXEMBOURG
Luxembourg is the most popular country for foreign companies in Europe. Economy in Luxembourg is characterized by stability. Many foreign companies come to set up in Luxembourg, due to the strong incentives and the security of this country. Actually, there are over 9,000 companies with foreign capital in Luxembourg.
The main foreign investors in Luxembourg are from the European Union, especially from Germany. Foreign companies also create a great number of jobs, mostly in the field of banking and insurance. The other main industries that Luxembourg focuses on are steel and chemicals. The government in Luxembourg established the Board of Economic Development in order to provide help for foreign investors who want to come and set up a company in Luxembourg.
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