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:
- Several variants of the name for verification.
- 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. - 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 company | Joint Stock Company (S.A.); |
| Term of company registartion | 20 working days; |
| AUTHORISED SHARED CAPITAL | 7 750 €; |
| PAID IN SHARED CAPITAL | 31 000 €; |
| Taxation | The 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:
|
| Minimum number of shareholders | One (natural or legal person, non-resident or resident); |
| The minimum number of directors | One (an individual or a legal entity, a non-resident or a resident); |
| Nominal service | Available; |
| Availability of information about company members | Information on directors and shareholders is publicly available; |
COMPANY WITH LIMITED LIABILITY (S.A.R.L.)
| Type of company | Limited liability company (S.a.r.l.); |
| erm of registration of the company | 20 working days; |
| AUTHORISED SHARED CAPITAL | 12 400 €; |
| PAID IN SHARED CAPITAL | 12 400 €; |
| Taxation |
|
| Minimum number of shareholders | One (natural or legal person, non-resident or resident); |
| The minimum number of directors | One (natural or legal person, non-resident or resident); |
| Nominal service | Available; |
| Availability of information about owners and directors | Information on directors and shareholders is publicly available; |
