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Luxembourg – SARL

Why is it beneficial for a company to incorporate in Luxembourg?

Both literally and figuratively, Luxembourg lies in the heart of the European Union. The country can boast a long-established international political presence, having played a key role in the founding of institutions such as NATO and OECD. There is no European country that could economically compete with the Grand Duchy. Luxembourg is the world’s second-largest investment fund center, preceded worldwide only by the US. Incorporating your business there comes with many benefits. Consider the following points:

Steady economy:
Luxembourg’s steady economy, one of the world’s highest GDP per capita, as well as a stable political situation are all factors that make this country the perfect place to incorporate in. The most substantial sector of the economy is banking, followed by information and communication technologies. The Grand Duchy’s leadership in the latter sector is corroborated by the fact that companies such as Amazon and eBay decided to incorporate there.

Strategic location:
With easy access to all parts of Europe, Luxembourg is the perfect place for your business headquarters on the old continent. The Grand Duchy’s highly developed transportation system, including Europe’s 6th biggest airfreight platform, ensures excellent logistics solutions for your business.

Taxation system:
Luxembourg’s taxation system is very enticing for foreign investors, especially for companies implementing research and development, which may qualify for grants and other financial programs. With the VAT rate between 17% and 3%, the Grand Duchy offers one of the lowest VAT rates in Europe. The corporate income tax rate depends on the taxable income. Three different rates apply.

What type of companies can be formed in Luxembourg?

SARL is the limited liability company type chosen by many foreigners in Luxembourg. Here’s the basic information that you need to know:

• Financial assets necessary for the incorporation is the minimum share capital of €12,000.
• For the incorporation itself, SARL needs at least one, but no more than 100 shareholders. Afterward, a minimum of two shareholders is necessary.
• In general, liability for the SARL is associated with the company itself, as opposed to the individuals behind it.