Frequently Asked Questions about Luxembourg company formation

Yes. Luxembourg welcomes foreign investments and entrepreneurs enjoy a series of advantages if choosing to invest in Luxembourg.

The legal forms in Luxembourg are: the limited liability company, the joint stock company, the cooperative company, the partnership and the limited partnership or the sole proprietorship. They each have their own characteristics and are suited for different business goals.

Yes. The company incorporated in Luxembourg will need to have a registered office in the country.

The client has to choose a suitable business name, we will obtain approval for it and draw up the company documents such as the Articles of Association. After all the documents are in order (complete with notarized copied and/or translations if needed), they are submitted to the Trade and Companies Register.

The minimum share capital depends on the chosen type of company. For the limited liability company the capital requirements are minimum 12,395 EUR while for the joint stock company the capital requirements are of 30,987 EUR. 

The bank account is required for companies because the minimum share capital is deposited upon incorporation. Banks will generally require the company’s articles of association or registration certificate as well as identification details for its founders.

Yes. Special permits and licenses are needed for some business activities such as imports and exports.

The corporate income tax is the main tax for companies and it has a value of 21% for income over 15,000 EUR and 20% for income below this value. Other taxes in Luxembourg include the real property tax, the stamp duty, the transfer tax, municipal business tax or social security contributions.

If all the documents are in order the company incorporation process will last approximately two weeks. 

Luxembourg offers political and economic stability, a central location in Europe ideal for trade businesses, a friendly tax environment, skilled workforce and good infrastructure.