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How to properly open a holding company in Luxembourg 2020

Holdings in Luxembourg 2020: types and features of registration

2020-09-11
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It is advantageous to open a holding company in Luxembourg, as there is a special tax regime within the jurisdiction. It is possible to manage the company remotely from any country. To learn more about the nuances of registration, please contact our specialists at IT-OFFSHORE.

Types of holdings in the jurisdiction

Before registering the holding in Luxembourg in 2020, it is important to get acquainted with the main forms of companies. The most relevant types are SOPARFI and Holding 1929. The first form represents a company that cannot trade and does not manage other legal entities. SPF companies are most attractive if the main purpose is to protect assets.

These are the forms it is possible to open holdings in the jurisdiction:

  • SARL;
  • SA;
  • COOPSA;
  • SCA.

Holding is a reliable tool for organizing ownership and protecting assets abroad. It can be used as a family trust or fund for the distribution of assets. Any adjustments to the organization's structure can be made in a short period of time - up to an average of 14 days.

Objectives of holding company registration

The organizatio in Luxembourg allows developing international business. A holding firm with two or more investors is required to make joint investments in subsidiaries in other countries, or if it is necessary to attract investments in the existing business.

A financial company can be established to provide project financing. A licencing company is created for software development and other intellectual property objects.

The advantages of starting a company

The main advantage of creating a company is that the country's legislation is flexible. There is an opportunity to distribute and manage assets, including performing actions among family members. There are no physical presence requirements - the firm may be created remotely.

Luxembourg provides an opportunity to receive dividends from the parent company without paying taxes. When opening an SPF, profits are tax-exempt and this form of the company may not manage its investments.

Despite the fact that the country is not offshore, benefits are provided to optimize tax treatment. It is also beneficial for the state to carry out investment activities and invest in start-ups.

Main conditions of opening

To register a company, you must have an office in the country where the person is registered. Information about directors is included in the public register. Information about shareholders and owners is not disclosed.

Firms that have been registered in the country must keep accounts and submit annual reports. To open a firm in the most popular form SOPARFI, you will need a share capital of 31 000 euros. Both individuals and legal entities can establish a company in the country. It is possible to appoint nominee directors and shareholders.

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