Opening of a financial institution in Luxembourg in 2021
To open a financial institution in Luxembourg in 2021, please contact our specialists at IT-OFFSHORE. This country is the world's financial center, so it is important to open different types of companies operating in the financial sector.
Features of opening a company
Before opening a financial institution in Luxembourg in 2021, it is recommended to get acquainted with the peculiarities of industry regulation. All financial institutions are subject to the Law on Banks.
In addition to this law, the provisions of the Commercial Code must be observed. The most frequently used to open a financial company is the SA, SARL. It is possible to open a financial company to provide banking services, asset management, stock exchange or brokerage services.
Depending on the activity of the company there may be different conditions regarding the share capital. The smallest amount is usually from 50,000 euros. A capital of 8.7 million euros or more is required when opening a credit institution.
The main document that regulates the activity of the company is its charter. It is signed by the founders. The content of the document is determined by law and must include a number of points. It is necessary to display data on the founders, legal forms, the purpose of establishing a business, the size of the authorized capital, nuances of management.
Execution of permit
To obtain a licence from the regulator, you must collect a number of documentation. It is necessary to prepare a business development plan and provide detailed programs that are used to provide services. It is necessary to have data on beneficiaries.
To obtain a licence, it is necessary to send a written official application on paper and in electronic form. For the submission of documents it is necessary to pay 15 thousand Euro.
Financial companies in the jurisdiction are considered, as well as other legal entities, there are no special conditions for them to pay fees. An institution with the status of a tax resident of the country must pay a corporate rate and a municipal fee at the rate of 24.94%. There is a tax on net property.
The advantages of opening a company in Luxembourg
It is advantageous to open a financial company in Luxembourg, because the tax rates are relatively low and various privileges can be enjoyed when conducting investment activities.
The country is geographically advantageous and has a well-developed infrastructure. The price for office rent is relatively small and the standard of living in the country is high. Luxembourg has a well-developed legal and judicial system.