LUXEMBOURG

Luxembourg is a small landlocked country in western Europe. Its capital, Luxembourg City, together with Brussels and Strasbourg, is one of the three official capitals of the EU and the seat of the European Court of Justice, the highest judicial authority in the EU. Its culture, people, and languages are highly intertwined with its neighbours, making it essentially a mixture of French and German culture.

  • Tax benefits: Corporate tax rate is different and depends on income, around 22.4%, which is below the global average of 24.29% and slightly above the EU average of 21.51%.
  • Less risks: Luxembourg is one of the founder of European Union and one of the world’s wealthiest country.
  • Fast and easy procedures: Modern and efficient public administration and excellent infrastructure.
  • Banking facilities: The biggest European banks are represented in Luxembourg.
  • Benefits: Some tax exemptions, easy registration with only one shareholder required, and privacy with shareholders not named in any public records
Types of Luxembourgish companies
  • Limited Liability Company(LLC., Lts., SARL): Corporation whose assets are wholly liable for the company’s liabilities. It may be formed for the carrying on of any type of commercial or non-commercial purposes.  The minimum capital is 12,500 EUR. It has one or more Managing Directors who are not required to be company shareholders.
  • Financial Holding Company (SOPARFI, origin. Société de participations financière): Is a non-regulated Trading Company in Luxembourg which is fully liable to tax. The purpose of a SOPARFI is predominantly the acquisition, management and realization of investments in companies in or out-with Luxembourg. A SOPARFI is permitted to carry on all types of commercial activities insofar as they are consistent with the articles of association or Luxembourg’s statutory provisions.
  • Investment Fund (SICAV/SICAF origin.Société d’Investissement à Capital Variable and Société d’Investissement à Capital Fixe) : Investment fund structures in Luxembourg may be formed as UCITS (Collective Investment of Transferable Securities) Funds or as Specialized Investment Funds (SIF).  Their purpose is the investment of the share capital in securities or in other liquid financial investments in accordance with the principle of diversification to allow the shareholders to receive the earnings generated from the management of their assets.  The SICAV and SICAF Investment Funds are only permitted to manage the assets in their own portfolios.



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