Company registration in Luxembourg: which form to choose?
Is it realistic to incorporate a company with a share capital of 1 euro in one of the richest countries in Europe? It may sound strange, but yes! Business in Luxembourg can be created remotely with a director, shareholder and in limited time.
Advantages of jurisdiction for foreign businesspeople
- Luxembourg is located in the heart of Europe, has good infrastructure and transport accessibility;
- The standard of living of the population is valued highly, therefore, the company will have solvent potential consumers of goods and services;
- Beneficial owners can, if they wish, keep their personal data confidential (local laws do not prohibit the issue of bearer shares and maximum privacy);
- Flexible system of tax benefits for foreign companies;
- The stable economic situation in the country, its high level of prestige;
- Linguistic accessibility (many English- and even Russian-speaking specialists);
- Developed banking and investment sector.
There are three main types of firms in the country. SARL-S (simplified private limited liability company, allowing the payment of the share capital in the amount of 1 to 12000 euros), SARL (classic private limited liability company), SA (joint-stock company) and SOPARFI (holding). The form of SARL-S was legalized in 2017 at the request of the local government in order to attract more foreign businesspeople and investors to the country and create comfortable starting conditions for them.
How to register SARL-S in Luxembourg in 2020
- Only individuals can be founders of the company, and each of them can relate to only one SARL-S;
- The main purpose of the establishment should be commercial activity;
- Activities may only be carried out after obtaining a permit from the local Ministry of Economy;
- Accounting and financial statements can be submitted for inspection under a simplified scheme.
This legal form is one of the most successful for establishing a business in 2020. The algorithm is simple: the founder needs to draw up a charter and, together with documents certifying his or her identity and personal data, submit it for registration in the Luxembourg Trade and Company Registry. If everything is executed correctly, the charter will be published on a specialized electronic platform, and it will serve as a signal to start a business.
If SARL-S is not suitable for business purposes, it will be a bit more difficult to register a company in Luxembourg 2020. SARL will require a share capital of 21,400 euros or more, which can be used by the founders for any purpose after the completion of the registration procedure. It will be suitable for small and medium-sized businesses and maximum protection of their owners' capital. The initial capital for SA is even higher - 31 100 euros, the registry of shareholders of such a company must contain at least 7 persons, and their personal financial resources, in case of force majeure, can be used for the needs of the company.
For many years IT-OFFSHORE has been providing consulting services to those wishing to establish a company abroad and can offer full support for this procedure at a favourable price.