Luxembourg company registration

DOING BUSINESS IN LUXEMBOURG IN 2019

Since 2003, Healy Consultants Group PLC has been efficiently and effectively assisting our Clients with i) Luxembourg business registration ii) business licensing iii) Luxembourg business banking solutions iv) visa options and staff recruitment strategies and v) workspace rent.

Summary table of Luxembourg company registration

SummaryTax resident LLCFast business set up solutionTax exempt holdingWealth management companyTax exempt IP holdingPLCBranch
Also known asSARLSARLSOPARFISPFSOPARFISABranch
Best use of company?Trading companyTo invoice Clients immediatelyHolding companyWealth managementReceive IP incomeEU IPOConsolidated accounts
How soon can you invoice Clients/sign sales contracts?1 month2 weeks1 monthCannot trade1 month1 month1 month
How soon can you hire staff?1 month2 weeks1 month1 month1 month1 month1 month
How soon can you sign a lease agreement?ImmediatelyImmediatelyImmediatelyImmediatelyImmediatelyImmediatelyImmediately
How long to supply corporate bank account numbers?2 months1 week2 months2 months2 months2 months2 months
How long to supply company registration/tax numbers?1 month2 weeks1 month1 month1 month1 month1 month
Corporate tax rate on annual net profits?19%19%up to 0%up to 0%up to 0%19%19%
Limited liability entity?YesYesYesYesYesYesNo
Resident director/partner/manager required?NoNoNoNoNoNoYes
Minimum paid up share capital?€12,400€12,400€12,400€12,400€12,400€31,000€0
Corporate bank account location?ABN AMROCitibankHSBCBarclaysCitibankStandard CharteredCommerzBank
VAT payable on sales to local customers?17%17%17%Cannot trade17%17%17%
Average total engagement costs?€19,170€55,170€24,170€23,170€24,170€22,455€18,870
Average total engagement period?3 months3 months3 months3 months3 months3 months3 months

Expand table

Accounting and tax considerationsTax resident LLCFast business set up solutionTax exempt holdingWealth management companyTax exempt IP holdingPLCBranch
Statutory corporate tax payable?19%19%up to 0%up to 0%up to 0%19%19%
Legally tax exempt if properly structured?NoNoYesYesYesNoNo
Group HQ tax incentives?YesYesYesYesYesYesYes
Must file an annual tax return?YesYesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesYesYes
Must appoint an auditor?NoNoNoNoNoYesNo
Access to double taxation treaties?YesYesYesYesYesYesYes
Withholding tax on payments to shareholders?15%15%0%0%0%15%0%
Company RegistrationTax resident LLCFast business set up solutionTax exempt holdingWealth management companyTax exempt IP holdingPLCBranch
Minimum number of shareholders/partners?111111Parent company
Minimum statutory paid up share capital?€12,400€12,400€12,400€12,400€12,400€31,000€0
Shelf companies available?YesYesNoNoNoNoNo
Time to incorporate a new entity?3 weeks2 weeks3 weeks3 weeks3 weeks4 weeks4 weeks
Can easily convert to a PLC?YesYesYesYesYesYesNo
Can have preference shareholders?YesYesYesYesYesYesNo
Business ConsiderationsTax resident LLCFast business set up solutionTax exempt holdingWealth management companyTax exempt IP holdingPLCBranch
Good entity for trademark registration?YesYesNoNoYesYesYes
Good entity to secure an import and export license?YesYesNoNoNoYesYes
Minimum number of directors/managers?1111131
The entity will likely be regulated by?Trade and Companies RegisterTrade and Companies RegisterCSSFCSSFCSSFTrade and Companies RegisterTrade and Companies Register
Good business vehicle to secure trade finance?YesYesNoNoNoYesYes
Good vehicle to bid for government contracts?YesYesNoNoNoYesYes

Government grants available?Yes
Resident tax representative required?No
Maximum shareholding for foreigners?100%
Sponsorship by local citizen required?No
Our Client needs to travel to Luxembourg for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
Monthly VAT reporting to the government?No
Must sign an office lease agreement?No
Shareholders and directors documents to be attested?Yes
Foreign director needs a tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?No maximum
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
Government approval required for foreign owners?No
Public register of shareholders and directors?Yes
What will be included in my customer sales invoice?(click link)
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average customs duties suffered?0.60%
Government foreign investment approval required?No
Average monthly office rental? (per sq m)€65
Minimum statutory monthly wage?€2,000
Average monthly € salary for local skilled employees?€4,810
US$ deposit interest rate? (1 year average)0.25%
Overseas remittance currency controls?No
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Excellent
Crowd funding available in this country?Yes

Luxembourg business setup summary

Press the link headings below to read detailed, relevant, up to date information.

Select corporate structure
Business set up guide
Luxembourg corporate bank account
Business set up strategy
Trademark registration
Compare European tax-exempt companies
Corporate support services

Contact us

For additional information on our company registration services in Luxembourg, please contact our in-house country expert, Ms. Evgeniya Salamonava, directly:
Consultant at HC - Evgeniya
  • Ms. Evgeniya Salamonava
  • Client Engagements Manager
  • Contact me!