 General
Situated on the edge of French and German speaking regions, the Grand-Duchy of Luxembourg is bordered by France, Germany and Belgium.
Luxembourg is a hereditary constitutional monarchy and is very strong politically. Legislative power belongs to the Chamber of Deputies, whose members are elected by proportional vote.
Luxembourg is also the administrative head office of a large number of European institutions.
These characteristics make Luxembourg a financial location which has all of the qualities and advantages required for development and consolidation over the coming years.
Banking secrecy is a tradition of the Grand-Duchy, and which was strengthened by the Official Journal in 1989. The capitalised power which is concentrated within this country (talking in millions of dollars) forms a foundation of financial guarantee, seriousness and stability.
Luxembourg has signed agreements with more than 30 countries. All of these treaties are harmonised with the requirements of the OECD. In summary, the treaties guarantee that a company will only be taxed in their country of residence.
Business Card
- Banking Secrecy
- Flag of convenience
- Holdings
- Classed as one of the best tax havens
- Official language: French, Luxembourgese, German.
- Population 2004: 462,690 inhabitants.
- Growth rate: 0.93
- Surface area 2586 km²
- Currency: Euro
- Main city: Luxembourg
Banks
Banking secrecy is respected.
Currently, Luxembourg is home to several hundred banking and financial establishments, benefiting from a solid world reputation. The banking personnel are highly competent and particularly efficient.
It is possible to open accounts in any currency. The accounts gain interest.
Capital transfers are free.
Orders can be given by phone, fax or e-mail, using a security system.
Companies
Luxembourg distinguishes between traditional business companies and SOPARFI (Financial participation companies).
The legal forms are Public Limited Company and Limited Liability Company.
The minimum capital of a Public Limited Company (SA) is 31,000 € and for a Limited Liability Company (SARL) is 12,400.00 €. There must be no more than 40 shareholders and if there are less than 25 shareholders an annual general meeting is not required.
There are also traditional forms of Civil Companies, Limited Partnerships, foreign company subsidiaries and "Management Holdings” (concentrated management of the resources of a group of companies), placement holdings (management of a portfolio of property values), issuing holdings (subscription of company shares), patent holdings (management of a patent portfolio), finance holdings (issuance of loans which finance the member companies)".
The most recommended solution is that of the SOPARFI structure.
This type is subject to all Luxembourg taxes but benefits from the advantage of not being doubly taxed and in particular is exempt from the dividends and capital gains for disposal of shareholdings.
E-commerce
The government encourages the development of e-commerce and there are therefore a large number of suppliers of all kinds of services. |
