One of the modalities through which foreign investors can open a company in Luxembourg
is through a SOPARFI
, which designates a financial holding company
(societe de participations financiere
). This type of business form describes a company
which is used for purposes related to the financial investments
. Our team of company formation agents in Luxembourg
can offer assistance on the incorporation procedures applicable for this business entity.
Legal entities for SOPARFI in Luxembourg
A SOPARFI in Luxembourg is registered following the applicable regulations available for commercial companies. The procedure of company registration in Luxembourg applicable for the SOPARFI stipulates several types of legal entities under which this structure can be incorporated.
The SOPARFI can be registered as:
• public limited company;
• partnership limited by shares.
As a general rule, most of the SOPARFI in Luxembourg
are registered under the first legal entity mentioned above - the public limited company
and our team of representatives in company formation
can offer advice on the main advantages of incorporating this legal structure.
Registration aspects for SOPARFI
can be opened in Luxembourg
with the purpose of performing investment activities
in other companies
located in this country or in another jurisdiction. The procedure of company incorporation in Luxembourg
states that the SOPARFI
can undertake commercial activities as well. However, such activities must follow the provisions established under the company’s statutory documents
The SOPARFI’s statutory documents
are the articles of association
, which must be signed in front of a public notary in Luxembourg
, that should further on be registered with the Trade and Companies Register
Taxation of the SOPARFI in Luxembourg
When opening a SOPARFI in Luxembourg
, the investors should know that the legal entity
can benefit from several tax exemptions
, provided that certain conditions are met.
As a general rule, the taxation on the distribution of dividends of a SOPARFI is imposed with a corporate tax applicable at the rate of 29,22%.