Luxembourg Offshore Company Registration

LUXEMBOURG OFFSHORE COMPANY REGISTRATION
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Luxembourg Offshore Company Registration with Bank Account

Introduction

Luxembourg is a small European country that offers important business opportunities that compensate for its size. Its central location in Europe allows it to have excellent connectivity to the EU markets and Luxembourg is just a few hours away from important European capitals and business centers like Paris, Frankfurt or Brussels. The country’s economic stability and its openness towards foreign direct investments are two other reasons why entrepreneurs choose to set up a company in Luxembourg.

Company formation in Luxembourg is straightforward both for national and foreign investors. The procedure is simple and quick once you have all the required documents.

Our European company formation agent, which has affiliated partners throughout the world, including our partner law firm in Luxembourg, which can provide local legal assistance for foreign investors, and our partners from Switzerland and Netherlands. Also, can provide you with information needed for doing business in other countries in Europe, such as Netherlands, France, Italy, Turkey etc.

Reasons to invest in Luxembourg

Luxembourg has managed to maintain its economic stability throughout the global economic and financial crisis. The country’s economy is based on many types of business activities that prove to be a successful blend for the well-being of the Duchy. Financial services, manufacturing, retail, e-commerce, communications and logistics as well as imports and exports are some of the most important and successful business fields in Luxembourg.

Luxembourg’s favorable legal and tax regime are a main attraction for companies that want to base their headquarters in a highly accessible and connected European business hot spot. Foreign companies in Luxembourg benefit from even more advantages because of the large number of double tax treaties concluded by the Grand Duchy with numerous countries worldwide. These treaties help protect against the double taxation of the foreign-source income, so taxpayers do not have to worry about paying the same taxes in both countries.

Investors in Luxembourg will also be pleased to find that the country has a skilled and multilingual workforce. Also, a large percentage of the employees in Luxembourg are cross-border commuters, another proof that the small country is open to international investments and collaboration. Finally, the quality of life in Luxembourg is another key factor that attracts business owners and employees alike. Luxembourg may be one of the world’s smallest countries, but it is also one of the wealthiest.

Requirements for opening a company in Luxembourg

Any company incorporated in Luxembourg needs to have certain documents that will attest the existence of the legal entity in the Grand Duchy. The articles of association need to be drafted and the founding members must provide specimen signatures, passport copies and other documents. Once these documents are drafted, they will need to be translated by a certified translator and then submitted to a public notary for authentication. The articles of association are later published in the Luxembourg Official Gazette.

The investors will also have to open a bank account in Luxembourg where the minimum share capital will be deposited. The name of the new company also has to be verified in order to comply with the requirements in the country. This verification can be made at the Trade Register and our experts can help you throughout these incipient phases.

A Luxembourg company will also need a main office from where it can perform its business activities. If you are a foreign investor in the country, our partner lawyers in Luxembourg can help you open a virtual office at a prestigious business address.

Types of companies in Luxembourg


There are several types of companies that can be registered in Luxembourg and the most suitable type depends on the investor’s business purposes. While some types of companies are more suited for small and medium-size businesses, others will favor large businesses or be suitable for those corporations that want to expand their activities in the Grand Duchy.

The following types of companies are recognized by the Luxembourg Companies Law:

The private limited liability company and the public limited liability company are two of the most popular business forms in Luxembourg. They require a specific minimum share capital and there are requirements regarding the managing and supervisory bodies of a public limited liability company.
A branch in Luxembourg is a good business option for foreign companies that want to establish its presence on the market. The newly incorporated company will not be a legal entity in Luxembourg; instead it will depend completely on the mother-company abroad.
Subsidiaries in Luxembourg are another type of companies preferred by foreign legal entities. Unlike the branch, these companies have legal personality and the foreign company is not liable for their actions.

Luxembourg has a perfect blend between an attractive business environment, a stable economy and numerous business opportunities. If you are interested in setting up a company in Luxembourg, our experts can help you from the earliest stages in company formation.

Luxembourg AAJP GLOBAL Advantages

Luxembourg AAJP GLOBAL Benefits

A Luxembourg AAJP GLOBAL can enjoy these benefits:

Management

AAJP GLOBAL’s formed as a private company (SARL) a minimum of one manager is required. The manager does not have to be a local resident and can be a citizen of any country who has the option of holding shares in the company.

AAJP GLOBAL’s formed as a SA public company must appoint at least one director (who can be the sole shareholder), or three directors if not solely owned.

Minimum Capital

A SA must have a minimum capital of 31,000 Euro with at least 25% paid up. A SARL can be formed with a minimum capital of 12,500 Euro.

Capital can be paid with cash or in kind contribution. In kind contributions to a SA requires the company’s independent auditor’s report regarding its value. A SARL’s in kind contributions do not require this.

Registered Agent and Office

Every company is required to appoint a local registered agent and have a local office address.

Audits

AAJP GLOBAL’s are not required to obtain audits or file accounts with the government. However, a pubic SA corporation must appoint an independent auditor to certify annual accounts.

Taxes

Since a AAJP GLOBAL is a mixed holding company, tax treatment of the pure holding company profits differ from those earned by commercial or trade activities. All resident Luxembourg corporations not required to obtain a trade license to conduct business inside Luxembourg where all assets, bank accounts, and securities totals exceeds 90% of its total balance sheet will only pay the minimum corporate tax flat fee of 3,210 Euro.

Since 2013, the corporate tax rate of dividends and liquidation and sale proceeds is 29.22% (Municipal business tax rate of 6.75% plus a Solidarity Surtax of 7% on top of the corporate tax rate of 15.47%). However, these taxes can be exempt under a complicated system for the parent company and its subsidiary to follow.

In addition, there is a Value Added Tax (VAT) of 15% if a SOPARFI engages in commercial activities other than being a holding company.

Note: U. S. residents and all others residing in countries taxing global income must report all income to their tax authorities.

Annual Meetings

An annual general meetings of shareholders is mandatory.

Public Records

Only companies engaging in trade or commerce within Luxembourg will have information in the public records.

The names of the shareholders are not part of the public records.

Time for Incorporation

It is estimated that the incorporation process may take up to one week.

Shelf Corporations

Shelf companies and corporations are available to purchase in Luxembourg.

Banking in Luxembourg

The Luxembourg financial center has established its reputation as an international banking place since the 1960s and has been able to remain at the top among all financial centers across the world thanks to its resilience and ability to rapidly comply with new regulations.
Luxembourg’s international banking center has a long-standing expertise in financial services, ranging from international private banking and wealth management, retail banking, corporate finance to fund services and depository banking. Luxembourg is leveraging its unique strengths and attributes to position itself as a leader in emerging fields such as innovative financial technologies (‘Fin tech’) and sustainable finance.

Growth in Luxembourg was close to 3% in 2018, mostly carried by strong consumer spending. Employment has grown by 3.7% year-on-year in 2018. Employment in the financial sector grew by more than 4.1%.

The banking sector is the main economic engine. In 2018, it has one third of the Gross Domestic Product (GDP), 11% of employment and 21% of fiscal revenues.

Luxembourg features the highest banking internationalization rate in Europe (94.8%) with more than one third of the 136 banks coming from outside the European Union. These banks are operating an expanded business model on a cross-border basis, using an EU passport for providing financial services across Europe, particularly in private and corporate banking as well as in asset servicing.

Banks in Luxembourg have sufficient own funds to face potential difficulties with a CET1 ratio of 25,1%. With 25,9% solvency ratios remained well above the thresholds and banks show a high level of capitalization.

Online banking and digital payments boast high utilization rates with 96% for the 25-34 age range making use of online banking. Also, debit or credit card transactions have accounted for 63% of the total payments in volume in 2018.

Loans increased by 6.7% year-on-year, thanks to the contribution of the retail banking, corporate banking and private banking sectors. At the same time, the evolution of deposits is stable. On a general basis, deposits are still higher than loans, ensuring a robust stability and a high liquidity in all credit institutions.

Over the last years, Luxembourg’s stable and diversified financial ecosystem has facilitated the establishment of new banks incorporating their European hubs in Luxembourg, including the seven largest Chinese banks – Bank of Communications, the China Merchants Bank, the Agricultural Bank of China, the Bank of China, the Industrial and Commercial Bank of China, the China Construction Bank and the China Everbright Bank. Chinese banks led the sector in terms of year-on-year balance sheet growth in 2018.

Luxembourg’s commitment to sustainable finance has created an ideal environment for mobilizing international capital for green projects. Luxembourg is a front runner in pushing for the most advanced solutions, testing and implementing new approaches to ensure that sustainable finance products are widely available.

According to the first sustainable finance survey conducted in 2018 by the Luxembourg Bankers’ Association among the country’s foremost financial institutions:

85% of financial institutions already incorporate social and environmental elements in their vision and strategy and are signatories of global or local sustainability initiatives;

More than 65% of respondent banks offer green finance products to their clients;
The main drivers behind the adoption of sustainable finance practices are deemed to be brand recognition (76%), stakeholder (64%) and shareholder requirements (64%);

Banks are experiencing a growing demand from clients for green products (28%)
Building on its strong and longstanding track record characterized by stability and international outreach, Luxembourg is expanding its leadership in areas such as e-commerce, e-payment and fin tech which are currently reshaping the global financial sector.

Luxembourg, a competitive financial center

Luxembourg’s financial services center is unique with its exceptional range of services, world-class financial infrastructure and expertise, the country’s banking industry is competitive.

Luxembourg Offshore Banking: The Right Choice

Technology, most especially the internet, is a vital part of our everyday lives. It is like we have a whole new community virtually. Indeed, technology has made our lives a hundred times easier. Simple tasks like shopping are now done online. This is only one of the many ways to use the benefits technology for our everyday lives. You can now easily get in touch with anyone from almost any part of the world. Even the process of banking can also be done internationally. One of the most popular offshore banks of all time is Luxembourg Offshore Banking. This Luxembourg Offshore Banking review will give you some of the reasons why you should use Luxembourg Offshore Banking.

Why You Should Choose to Use Luxembourg Offshore Banking

We all know that Luxembourg Offshore Banking is already a household brand when it comes to offshore banking. They are already around since 1981. The brand is also number one when it comes to security. Here are some of its key features:

Regulatory provisions

The financial sector becomes increasingly regulated by European regulations and directives, in addition to national laws. Credit institutions need to comply with many requirements

Key Corporate Features of a Labuan Offshore Company

Documents required from customers for the procedures align with the incorporation of the Offshore company and Bank Account opening in the selected jurisdiction

TOTAL FEES INCLUSIVE OF GOVERNMENT FEES $21,515