GSL / Offshore and International Law / Offshore zones / Western Europe / Luxembourg / Legislation of Luxembourg

Legislation of Luxembourg

Service packages «Luxembourg-S.A.» Service packages «Luxembourg-S.A.R.L.» Legislation Tax System Audit Services

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Tax Exchange Information Agreement (TEIA)

List of state regulatory authorities

Luxembourg Government
Luxembourg Chamber of Commerce
Luxembourg Official Gazette (Memorial)
Central Bank of Luxembourg
Luxembourg Administration of Direct Contributions
Luxembourg Administration of Indirect Taxes
Luxembourg Administration of Customs & Excise
Luxembourg Bar Council
Association of the Luxembourg Fund Industry (ALFI)
Luxembourg Bankers’ Association (ABBL)
Luxembourg International Management Services Association (LIMSA/www.limsa.lu/
Luxembourg National Tourist Office

Corporate info

Legal system
civil law
Types of entity
Private Limited Company (société à responsabilité limitée, Sarl); Public Company Limited by Shares (société anonyme, SA); General Partnership (société en nom collectif); Limited Partnership (société en commandite simple); Partnership Limited by Shares (société en commandite par actions); Cooperative Society (société coopérative); European Company (société européenne); Branch Office
Shelf companies permitted
Yes
Incorporation timescale for a new company
5 days
Company suffix
SARL or GmbH
Sensitive words
Bank, Building Society, Savings, Insurance, Assurance, Reinsurance, Fund Management, Investment Fund
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
No
Information to be kept at the registered office
register of shareholders
Seal required, type of seal
not required
Redomiciliation (to, from) permitted
permitted

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
Yes
Directors’ meetings/frequency/location
No requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
No requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
12394.68
Minimum issued share capital
12394.68
Minimum paid share capital
12395
Authorized capital payment deadlines
Upon registration
Issued capital payment deadlines
Upon registration
Standard currency
Euro
Standard authorized share capital
12500
Standard par value of shares
100
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
8-42%
Min. rate for corporate tax
24,94%
Corporate tax (in detail)
The overall effective tax rate in Luxembourg City is 24.94%
Capital gains tax
Regular rate
Capital gains tax. Details
Capital gains are generally included in taxable income and taxed at the standard corporate tax rate
VAT
17%
VAT. Details
The standard VAT rate is 17%. For some goods and services, the tax rate is 14%, 8% and 3%.
Withholding tax
15%/0%/0%
Other taxes
Social Contributions, Net Assets Tax, Inheritance and Gift Tax, Property Tax
Exchange control
No
Government fee
No
Stamp duty
11.8%

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
Requirement to file Annual Return
No
Publicly accessible Annual Return
No
Audit required
No

General information shortly

Location
Western Europe
Total area
2.586 sq. km
Population
613.894 (2019)
Capital
Luxembourg
National currency
Euro
Conditional reduction of currency
EUR
Against USD
0.93 (2022)
Climate, average max and min t°
Modified continental with mild winters, cool summers; avg. maximum temperature (July) +22°С; avg. minimum temperature (January) +2°С
Time difference from Moscow
+ 1 hour
Dialing code
+352
State language
Luxembourgish, German, French
Ethnic groups
Luxembourger 63.1%, Portuguese 13.3%, French 4.5%, Italian 4.3%, German 2.3%, etc.
Literacy rate
100% (2019)
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.
Credit rating
AAA
Government type
Constitutional monarchy
Executive branch
Head of State (the Grand Duke) and Government
Legislative branch
Chamber of Deputies (60 members) and Council of State (advisory body)
Judicial branch
Superior Court of Justice (includes the Court of Appeal and the Court of Cassation), Administrative Tribunal, Administrative Court, Constitutional Court
Unemployment
6,3% (2020)
GDP per capita rank
1 (2021)
Corruption perceptions index rank
9 (2021)

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Banks of Luxembourg

Bank
The cost of opening an account, $
Global rating
Countrywide rating
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