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Luxembourg

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Luxembourg

Luxembourg is the most popular jurisdiction for the creation of holdings due to the preferential taxation regime for the company's organizational and legal forms. The most common types of holding companies are:

  • Holding of 1929 (organized in accordance with the Law of July 31, 1929);
  • Soparfi ("Société de Participations Financières").

Holdings of 1929 are practically exempt from taxes, except for annual. However, it is worth considering that this type of holdings are not covered by an agreement on avoidance of double taxation. Soparfi, in turn, is widely used in commercial activities. They are fully covered by the agreement on avoidance of double taxation.

Also, it is possible to register the following types of companies:

  • Joint Stock Company (S.A.);
  • Limited Liability Company (S.a.r.l.).

Features of jurisdiction

  • It is not an offshore country and is not listed on any of the blacklists;
  • Not on the TC list;
  • Preferential tax rates for holdings;
  • A large number of agreements on avoidance of double taxation concluded, including with Ukraine;
  • Application in specific areas of business;
  • Prestigious;
  • There is an IP-box mode for companies that conduct research and development activities;
  • The possibility to use the benefits provided for in the EU Directives (for example, the Directive on parent and subsidiaries).

Ways of using the company

Holdings in Luxembourg are registered with the purpose of investment, portfolio management, share ownership and licenses, provision of loans, establishment of subsidiaries.

Company registration procedure

To register a company in Luxembourg, you must provide the following documents:

  1. Several variants of the name for verification.
  2. A package of documents for shareholders, directors and the beneficiary, which includes:
    - a civil passport, a driving license or a foreign passport;
    - confirmed address of residence.
  3. Information about the expected type of the company's activities and the geography of doing business.

COMPANY requirements

JOINT STOCK COMPANY (S.A.)

Type of companyJoint Stock Company (S.A.);
Term of company registartion 20 working days;
AUTHORISED SHARED CAPITAL7 750 €;
PAID IN SHARED CAPITAL31 000 €;
TaxationThe income tax rate is 18% for annual profits over 30,000 €, 15%, annual profit not exceeding 25,000 €;

VAT - 17% (preferential rates - 14%, 8%, 3%);

Tax at source when paying income:
  • dividends - 15%;
  • interest - 15%;
  • royalty - is not collected;
Minimum number of shareholdersOne (natural or legal person, non-resident or resident);
The minimum number of directorsOne (an individual or a legal entity, a non-resident or a resident);
Nominal serviceAvailable;
Availability of information about company members Information on directors and shareholders is publicly available;


COMPANY WITH LIMITED LIABILITY (S.A.R.L.)

Type of companyLimited liability company (S.a.r.l.);
erm of registration of the company 20 working days;
AUTHORISED SHARED CAPITAL12 400 €;
PAID IN SHARED CAPITAL12 400 €;
Taxation
  • The rate of income tax is 19%;
  • VAT - 17%;
Minimum number of shareholdersOne (natural or legal person, non-resident or resident);
The minimum number of directors One (natural or legal person, non-resident or resident);
Nominal serviceAvailable;
Availability of information about owners and directors Information on directors and shareholders is publicly available;

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