Luxembourg is a jurisdiction with a high income economy featuring moderate growth, low unemployment, and low inflation. Over recent decades, growth in financial services, especially banking and other financial exports, have created an attractive tax environment with complete banking secrecy. Luxembourg has created a favorable tax system for holding companies, and enacted numerous double taxation treaties. Luxembourg hosts many internet companies that have shifted their regional HQ to Luxembourg, e.g. Skype and eBay.
Main features & Advantages
- Financial center of European Union (2nd largest fund investment center)
- Excellent reputation for confidentiality and privacy
- A mature and well-regulated offshore banking system
- Attractive range of international tax planning
- Directors can be of any nationality
- High minimum capital (approximately US$ 18,000) to be deposited in a Luxembourg bank
- Expensive company formation
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Limited Company (Société Anonyme)
SA (Societé Anonyme)– Limited company, minimum share capital EUR 31,000; requirements include at least 3 directors, a registered office in Lux, and audited accounts if the company exceeds a certain size.
- Annual return required. If you order our incorporation fee, you may also order annual return filling fee. Please see our order form.
- Annual General meeting for SA, at least annually. For SARL (Societé Anonyme Responsabilité Limitée), an annual meeting must be held if more than 25 partners, otherwise a written resolution is sufficient.
- Annual tax returns – The Luxembourg tax year is the calendar year. A taxpayer must make advance payments quarterly on 10 March, 10 June, 10 September, and 10 December, based on the tax assessment of the preceding year. Although the official deadline for filing tax returns is three months after the end of the tax year, entities subject to corporate income tax must file an annual tax return each year before 31 May. The filing date may be extended upon request. Within 15 days of commencement of economic activities in Luxembourg, a taxable person must request VAT registration by filing with the administration. VAT forms may be filed electronically.
- Audit committee – SA – Small companies may use a statutory auditor but large companies require an external professional auditor. SARL – Small companies of less than 25 partners may use a statutory auditor; larger firms require an external professional auditor.