Choosing the European country to open a company, businessmen often stop the choice on Luxembourg. A developed country with stable economy and transparent legislation creates the preconditions for the successful implementation of profitable activities. “Prifinance” specialists render assistance in solving all organizational issues. Registration and maintenance of the firm in Luxembourg is one of the priorities in our company’s work.
Specialists of the “Prifinance” give free choice to every customer. You may buy ready company from the proposed list or register a new one. You choose the name, provide us with personal information and make advance payment. We are doing the rest. It is important to note that full payment of the services at the beginning of cooperation is not required. 30% is enough. This is a very favorable anti-crisis proposal, which we have developed for our clients. The remaining 70% shall be paid after the receipt of all papers. We send documents by DHL postal service to any region. It is reliably and quickly.
Types of companies and taxes
The classic offshore zone in Luxembourg doesn’t exist. However, the conditions for the development of business with foreign capital are very loyal. We will help to choose the optimal tax regime and the most appropriate legal form. Companies operate in the following forms:
- Holding 1929 (holding company). Such a company is exempt from taxes if the subsidiaries, which are registered in countries with individual income tax of not more than 11% give profits of up to 5%. This scheme allows to avoid double taxation.
- SICAR – the most attractive form in terms of tax planning. Within such a structure limited partnerships (SeCS) may be created. Tax on investment income, capital growths the source of which was the sale of shares of subsidiaries are not included in the tax base. Payment of AC is accompanied by the payment of the fixed amount – € 1250.
- SOPARFI – holding companies with a special regime that are subject to all taxes by the standard procedure.
- SCA – a partnership in which the responsibility of members is limited by the volume of shares.
- SA (Joint Stock Company) – minimum AC is Ђ 31 000. At the time of registration it is necessary to pay a quarter of this amount. The Company has the right to issue bearer shares and nominative shares. The minimum composition is two members without any residency requirements. Nominal representatives may be appointed. Companies undertake to perform auditing.
- SARL – The size of AC is not less than Ђ 12,500 and shall be paid in full by the time of filing documents. Luxembourg legislation permits the issuance of shares – only nominative ones. If the number of partners exceeds 25, it is necessary to hold meetings once a year. Company size influences the requirements for the submission of financial statements. Reports of the auditing are not required to be provided.
The rate of VAT is one of the lowest in Europe – 17%. There are tax incentives for businesses such areas as the supply of gas, advertising services, wine, books, and so on. For export sales and deliveries within the EU operates a zero rate. The minimum income tax – 20%. Separate rates for dividends not. They are considered part of income and are included in the calculation of her. The country has signed agreements on the elimination of double taxation.
Requirements to financial statements
Companies that are registered in Luxembourg, are obliged to keep the copies of financial statements in their corporate documentation (in the country or abroad). Each year it is necessary to provide audited balance sheet statements, accounts of losses and profits. The law obliges the holding companies to form and submit quarterly profit reports to the competent authorities. Companies functioning as a SOPARFI submit financial statements at the end of each calendar year.
Advantages of the region
Registration of company in Luxembourg attracts entrepreneurs for the following reasons:
- prestige and exclusivity of the jurisdiction;
- Access to cooperation with EU countries;
- developed banking system;
- investment attractiveness;
- availability of tax incentives;
- stability in political, legislative and economic aspects;
- confidentiality when using the nominee service;
- easy registration in which the specialists of the “Prifinance” company will help;
- developed stock and insurance markets.