Company Registration in Luxembourg - Business Starting & Setup

Luxembourg-S.A.
Luxembourg-S.A.R.L.

General Information

The Grand Duchy of Luxembourg - is a landlocked country in Western Europe. A member of the European Union since 1951. It is bordered by Belgium to the west and north, Germany to the east, and France to the south.

Luxembourg has a total area of 2,586 sq.km and a population of 613.894 people (2019). The main population are Luxembourgers (63,1%). Among other ethnic groups are Portuguese (13,3%), French (4,5%), Italian (4,3%), German (2,3%), etc.

The capital city is Luxembourg. Official languages are Luxembourgish, French, and German.

Official currency is euro (EUR).

Climate of Luxembourg is modified continental with mild winters, cool summers. Average maximum temperature in July is +22°C; average minimum temperature in January is +2°C.

Time difference with Moscow is -1 hour.

Literacy rate is 100%.

Calling code of Luxembourg is +352.

History

Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the nominal control of the Netherlands. It lost more than half of its territory to Belgium in 1839, but gained a larger measure of autonomy.

Full independence was attained in 1867. Overrun by Germany in both World Wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year.

In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union), and in 1999 it joined the euro currency area.

 

Government Type

Government type of Luxembourg is a constitutional monarchy.

The head of state is the Grand Duke. According to the Constitution he exercises executive power, sets the organization rules of government and its members, adopts and declares laws, appoints officials for civil and military posts, commands armed forces, concludes international treaties, etc.

The executive power is exercised by the Cabinet appointed by the Grand Duke and headed by the premier.

The legislative power is vested in the Chamber of Deputies, a unicameral legislature of sixty members, who are directly elected to five-year terms from four constituencies. A second body, the Council of State, composed of twenty-one ordinary citizens appointed by the Grand Duke, advises the Chamber of Deputies in the drafting of legislation.

The judicial system includes Superior Court of Justice, which includes the Court of Appeal and the Court of Cassation. There is also an Administrative Tribunal and an Administrative Court, as well as a Constitutional Court.

Economics

One of the richest countries in Europe with the highest level of living conditions. Luxembourg houses a lot of EU organizations. Thanks to profitable conditions and offshore zone in the capital there are about 1,000 investment funds and above 200 banks which is more than in any city in the world. 10% of GDP is formed due to iron ore extraction, iron and crude iron production.

GDP per capita is USD 126 569 (for 2021), 1st in the world (IMF List).

The economy is mainly based on the developed service sector, including financial field. Banking plays an important role in Luxembourg’s economy. Special attention is paid to telecommunication manufacturing, audio and video equipment production. Among other production items are chemical products, cars, plastics, textile, glass and porcelain. Almost all energy consumed in Luxembourg is imported, including oil, natural gas.

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