Registering a Company in Luxembourg

European Grand Duchy and Financial Centre

Luxembourg is the only remaining Grand Duchy in the world. Luxembourg is a constitutional monarchy and a Grand Duchy, with its ruler titled Grand Duke, a rank lower than King. It is a founding member of the European Union, situated near major financial and industrial hubs like Paris, Frankfurt, Cologne, and Amsterdam.

Tax Advantages and a Multilingual Talent Pool

Luxembourg has always pursued an open economic policy, encouraging international trade and attracting foreign capital investment. The country has signed a number of important treaties, which have also laid the groundwork for the growth of local businesses.

Luxembourg’s main advantages are its status as an internationally recognized financial center and its high standard of living.

Luxembourg’s citizens are fluent in English, French, and German, making it an ideal talent pool for companies entering the EU economy. The country also enjoys political and social stability.

Luxembourg’s corporate tax rate is among the European average at 21 per cent. However, Luxembourg has one of the lowest VAT rates in Europe at 17% and a relatively low personal tax rate. Luxembourg companies are also required to pay a low social security rate of 12 per cent for employees and 13 per cent for employers.

Luxembourg Company Registration Guide and Professional Services | 3E Accounting

Registering a company in Luxembourg generally involves a number of legal and administrative steps. First and foremost, you must select the type of company that best fits your business requirements, such as a limited liability company (SARL), a joint stock company (SA), or a partnership (SCS).

You will then need to choose a unique company name and make sure that it is not registered in the commercial register. The next step is to determine the registered capital of the company and deposit it at the time of incorporation. You will also need to prepare the incorporation documents, including the Articles of Incorporation, the Partnership Agreement (if applicable), the Board of Directors’ resolutions and other relevant documents.

After opening the company’s bank account and depositing the registered capital, you will need to provide the company’s registered address, which can be either a physical office or a registered agent’s address. If you need assistance with this, you are welcome to contact 3E Accounting.

After completing the preparatory work, you will need to submit the documents and complete the company registration process. You may need to visit the Commercial Registry or apply online. You must also pay registration and annual administration fees. Depending on your business, you may need to register for tax purposes and obtain a business license. Registration fees typically range from €75 to €150, based on the company type.

It is crucial to ensure that your company follows the regulations and business laws of Luxembourg. Enlisting a professional incorporation service or lawyer ensures a smooth and compliant company registration.

We hope that this information will be of assistance to you in registering your company in Luxembourg. For further advice or professional services, please feel free to contact 3E Accounting and we will be happy to provide you with support and guidance.