Introduction to setting up a Luxembourg subsidiary
Luxembourg is a very attractive prospect to foreign investors looking to establish a subsidiary. The country is a multi-lingual business hub located in central Europe, with a developed infrastructure and one of the lowest tax rates in the EU. There are also additional tax incentives for foreign investors. The setting up of businesses in Luxembourg is regulated by the Law of Commercial Companies and articles 1832 to 1873 of the Civil Code.
What are the main formalities of a Luxembourg subsidiary?
- The minimum share capital for an S.à r.l. (Private Limited Company) is € 12.500
- The minimum share capital for an S.A. (Public Limited Company) is € 31.000 – it is possible to constitute the company with ¼ share capital paid-in (€ 7.750)
- The Memorandum & Articles of Association of the subsidiary
- The resolution of the parent company detailing its decision to form the subsidiary
- A registered address in Luxembourg
In order to register the subsidiary, the documents shown above must be bought before a public Notary in Luxembourg and then filed with the Trade and Companies Register.
All required documents must be officially notarised, apostilled and translated into French by a sworn translator.
What are the accounting requirements of a Luxembourg subsidiary?
The subsidiary must register for tax and VAT by declaring itself to the Direct Taxation Authority. A VAT number and a Company Registration number will then be issued.
VAT returns should be filed either annually, quarterly or monthly, depending on revenues, and corporate tax returns annually.
Annual accounts must be filed electronically.
Please contact us for further information on accountancy services and tax rates in Luxembourg.
Subsidiary Formation Packages
Our comprehensive subsidiary formation packages mean that all of your incorporation needs and requirements can be exclusively managed by our team. The services included in our subsidiary formation packages include provision of a registered office, set up of a bank account, tax and VAT registration. We are experts in the requirements of Luxembourg subsidiaries and will ensure that every aspect of the process is proficiently organised.
For further information on subsidiaries in Luxembourg, please contact us using the form below.