Luxembourg Business Set Up

Luxembourg business set up is straightforward thanks to Healy Consultants' transparent, logical engagement procedures. Prior to starting a business in Luxembourg, we recommend our clients understand the tax and legal implications of Luxembourg business set up. Some of the points to consider when starting a business in Luxembourg include:
1.	International entrepreneurs incorporating in Luxembourg can do so via a so-called a Luxembourg Societe de Gestion de Patrimoine Familial (SPF), which replaced the 1929 Holding Company in 2006, or a Luxumbourg Trading Company.
2.	When starting a business in Luxembourg, note a Luxembourg Societe de Gestion de Patrimoine Familial (SPF) is legally exempt from corporation tax, municipal business tax and wealth tax. Furthermore, dividend payments by an SPF are exempt from withholding tax. In addition, capital gains realised by a non-resident individual selling shares in an SPF are not subject to tax in Luxembourg.
3.	After starting a business in Luxembourg through a a Luxembourg Societe de Gestion de Patrimoine Familial (SPF) , although it pays no corporate tax, an SPF is subject to an annual subscription tax of 0.25% on debts exceeding eight times the paid up capital, up to a maximum of 125,000 Euros (US$166,000) per year. An SPF is subject to Luxembourg corporate tax and wealth tax if in a year it derives (for more than 5% of its total dividend income) dividends coming from non-listed foreign companies which are not subject to an income tax comparable to the standard Luxembourg corporate income tax rate.
4.	When starting a business in Luxembourg through a Luxembourg Trading Company, it is subject to Luxembourg corporation tax of 22.88% on worldwide income exceeding 15,000 Euros (US$20,000). However, tax relief is available via the double taxation treaties Luxembourg signed with more than 40 countries.
5.	A minimum of one shareholder and one director is required to set up a Luxembourg company. Shareholders and directors may be individuals or corporate entities of any nationality, and need not be resident in Luxembourg
6.	When starting a business in Luxembourg, this entity has a minimum share capital of 12,500 Euros (US$17,000), which must be fully paid-up at incorporation.
7.	After starting a business in Luxembourg, a public business register contains details of the registered office, share capital, directors, articles of association and annual accounts.
8.	All Luxembourg companies must file accounts and an annual return.
9.	A Luxembourg Trading Company requires a registered office in Luxembourg to which all correspondence is sent. Healy Consultants will be the registered office for our client's company.
Luxembourg business set up typically evolves as follows:
1.	Our client settles our fees and signs Healy Consultants' engagement letter.
2.	Healy Consultants provides our client with a detailed engagement plan prior to Luxembourg business set up, outlining a roadmap for Luxembourg business set up, minimising unwanted surprises and meeting client expectations.
3.	Healy Consultants collects all due diligence from our client prior to Luxembourg business set up.
4.	Healy Consultants legally completes Luxembourg business set up with the correct corporate structure. See Luxembourg company registration for further information.
5.	To support Luxembourg business set up, Healy Consultants opens a Luxembourg corporate bank account for our client, including world-class multi-currency internet banking facilities.
6.	If required, Healy Consultants provides our client with a local business address in Luxembourg for invoicing purposes, together with telephone, fax and email support to accompany Luxembourg company set up.
7.	To support Luxembourg business set up, Healy Consultants aids our client with business website building, search engine advertising, as well as stationery and logo design.
8.	Healy Consultants assists our client in obtaining corporate finance, trade finance and merchant account opening to support Luxembourg business set up.
9.	Following Luxembourg business set up, Healy Consultants assists our client to locate business premises and recruit local staff in Luxembourg.
10.	Healy Consultants e-mails an engagement feedback survey to our client following Luxembourg business set up.
Contact Us
For more information on Luxembourg business set up, email email@healyconsultants.com or telephone us at (+65) 6735 0120.
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