Luxembourg

Luxembourg  is a very attractive country to do business . The formalities as to set up a business in Luxembourg depend on the business sector . The country has low taxation of foreign investors .

It is also now one of the most popular in the world ( and the most popular in the European Union ) jurisdiction to create private and closed institutions for collective investment.

Benefits:

  • The high amount of tax-free income
  • Low rate CIT
  • No withholding tax on the payment of dividend
  • No taxation of company directors who are not residents
  • The high degree of confidentiality of business transactions
Types:

Self employed

  • Each citizen needs to hold a permit to conduct its activities  as well to report them
  • Residence/ registered office address is required in Luxembourg
  • Confirmation of the local address is required
  • It is required to register as a payer of social contributions

Limited Liability Company SARL- Ltd.

  • At least One director is required ,
  • the director does not need to be resident of  Luxembourg
  • share capital is 12 500 euros, can be paid in full and can be used as the company’s funds after it was created .
  • the share capital may become a similar sum paid in another currency
  • registration of a company is a must

SOPARFI- holding company

  • It may take the form of a company SA or SARL
  • is subject to income tax on legal persons
  • Can bear the benefits of double taxation treaties favorable taxation of profits and dividends
Requirements:

Registration a company:

The procedure for founding and registration of a company depends on the type of business.

  • The founding act is required -depending on the legal form,
  • Registration of a company by a notary public shall be held within 15 days.
  • to be added to the companies list in the Registrar- 1 month
  • The cost of setting up a business is 1 % of the capital and the notary fee (from 50 -1240 € ) .
  • Operating license ( authorization d’ établissement ) – documents required for obtaining a permit  (cost 24 € )Both documents are available for download: http://www.mcm.public.lu/fr/autorisations/index.html
  • Confirmation of payment – revenue stamp 24 € to buy in Administration de’l Enregistrement et des Domaines ( AED ) , or confirmation of the money transfer
  • Potwierdzenie wpłaty –znaczek skarbowy 24€, do zakupienia w Administration de’L Enregistrement et des Domaines (AED), bądź potwierdzenie dokonania przelewu na daną kwotę.
  • Good standing certificate
  • Declaration of non- bankruptcy is not made ​​before a notary public (cost approx. 90 € for non-residents or residents less than 5 years)
  • Certificates and school diplomas , certificates of completion of vocational courses
  • A certified copy of your passport
  • Confirmation of residence address

After receiving permission to start a business , you should register with the Registre de Commerce et des -Luxemburg Societies (RCS ) .

Before completing the registration form , check if the chosen name for your company is available.

 

Self employed:

Businesses and companies must be reported at:

  • Tax Office Administration-  payment of income tax,
  • Administration de l’ enregistrement et des Romains- AED for the payment of VAT
TAXATION

Personal income tax (PIT )

  • Depends on the amount of income
  • The amount of tax-free 11.265 €

Tax thresholds:

  • 0 – 11.265€  – 0%
  • 265 – 13. 173 – 8%
  • 173 – 15.081 – 10%
  • 081 – 16.989 – 12%
  • 989 – 18.897 – 14%
  • 897 – 20.805 – 16%
  • 805 – 22.713 – 18%
  • 713 – 24.621 – 20%
  • 621 – 26.529 – 22%
  • 529 – 28.437 – 24%
  • 437 – 30.345 – 26%
  • 345 – 32.253 – 28%
  • 253 – 34.161 – 30%
  • 161 – 36.069 – 32%
  • 069 – 37.977 – 34%
  • 977 – 39.885 – 36%
  • 885 – 41.793 – 38%
  • 793 – 100.000 – 39%
  • 000- and up – 40%

Corporate tax (CIT)

Podatek od osób prawnych:

  • Up to € 9,916 – 20 %
  •  9916 – 14 874 – tax rate is calculated from € 1,983 plus 50 % of the amount over 9916 € to 14,874 €
  • over 14 874 € – 30 %

In addition, each company will pay 4 % tax on unemployment fund .

Legal regulations
Luxembourg has signed an agreement for the avoidance of double taxation with the countries such as South Africa, Germany, Saudi Arabia, Armienią, Austria, Azerbaijan, Bahrain, Barbados, Belgium, Brazil, Bulgaria, Canada, China, South Korea, Denmark, United Arab Emirates, Spain, United States America, Finland, France, Georgia, Greece, Hong Kong, Hungary, India, Indonesia, Irladia, Iceland, Israel, Italy, Japan, Jersey, Kazakhstan, Laos, Latvia, Liechtenstein, Lithuania, Macedonia, Malaysia, Malta, Morocco, Mexico, Moldova, Monaco, Mongolia, Norway, Uzbekistan, Panama, the Netherlands, Poland, Portugal, Qatar, the Czech Republic, Slovakia, Romania, Russia, San Marino, Singapore, Slovenia, Sri Lanka, Switzerland, Seychelles, Tajikistan, Taiwan, Thailand, Tunisia, Turkey, Vietnam.

 

Luxembourg also signed an agreement on the exchange of tax information with the Member such as: Armenia, Austria, Bahrain, Belgium, Denmark, Finland, France, Germany, Iceland, Liechtenstein, Mexico, Monaco, Netherlands, Norway, Qatar, Spain, Poland, Switzerland, Turkey , United Kingdom, United States.

Accounting & Auditing
It is required to present the financial statements on an annual basis . The report is carried out based on the invoices generated by the company. Auditing the company is required only if the company generates high turnover and is regarded as a big company.
Finance & bank Accounts
Luxembourg  as a country respects the confidentiality of banking and banking information is not shared between the offices of the European Union. The document that will enable us to open a bank account in Luxembourg  is a confirmation of registration , list of source of the income in the country and offshore as well.
Company registration form