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The following are some of the most frequently asked questions about Luxembourg Company Formation:
How long does it take to incorporate a Luxembourg company?
How difficult is it to open a corporate bank account for a Luxembourg company?
Am I required to visit Luxembourg to incorporate a company there?
What is the minimum number of directors required for a Luxembourg company?
Is a resident director required?
What is the minimum number of shareholders required for a Luxembourg company?
Are shareholder/director details available for public viewing?
What are the minimum capital requirements for a Luxembourg company?
Is a Luxembourg company required to submit an annual tax return and/or financial statements?
How much tax does a Luxembourg Company pay?
Does a Luxembourg company benefit from Double Taxation treaties?
How long does it take to incorporate a Luxembourg company?
Registering a Luxembourg company is fast, taking only five days.
How difficult is it to open a corporate bank account for a Luxembourg company?
Because of stricter bank regulation, opening a corporate bank account in Luxembourg is becoming more difficult.
Am I required to visit Luxembourg to incorporate a company there?
No. Healy Consultants can legally incorporate your Luxembourg company without you needing to travel.
What is the minimum number of directors required for a Luxembourg company?
Under statutory regulations, a Luxembourg company requires a minimum of one director. Corporate directors are allowed .
Is a resident director required?
A Luxembourg company does not require a resident director.
What is the minimum number of shareholders required for a Luxembourg company?
A minimum of one shareholder is required.
Are shareholder/director details available for public viewing?
Yes.
What are the minimum capital requirements for a Luxembourg company?
A Luxembourg company requires a minimum capital of US$17,00.
Is a Luxembourg company required to submit an annual tax return and/or financial statements?
A Luxembourg company is obliged to submit an annual tax return and/or financial statements. It is also required to have its accounts audited.
How much tax does a Luxembourg Company pay?
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.
Luxembourg Trading Company
A Luxembourg SA or SARL that qualifies as a Trading Company pays 21% corporation tax on global income exceeding 15,000 Euros (US$21,700) and 20% corporation tax on global income below that amount. However, tax relief is available via the double taxation treaties Luxembourg signed with more than 40 countries.
In addition to corporate tax, a Luxembourg Trading Company pays a Municipal Business Tax (ICC) ranging between 6% to 12% percent depending on location, which is levied on taxable income above 17,500 Euros (US$25,300). Capital gains realised by the Luxembourg Trading Company is treated as ordinary income and is taxed accordingly.
There is a withholding tax of 15% on dividends paid to non-resident shareholders, unless reduced because of the double tax agreements signed by Luxembourg and other states.
Does a Luxembourg company benefit from Double Taxation treaties?
Luxembourg has signed Double Taxation Treaties with more than 40 countries, including China, France, Germany, Italy, Japan, the Netherlands, Singapore, Spain, the UK and USA.
Contact Us
For more information on any of our Luxembourg corporate services, e-mail email@healyconsultants.com or telephone us at (+65) 6735 0120.
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