If you wish to incorporate a company in Luxembourg, you must know that every newly incorporated company should be registered with the Trade and Companies Register. The Trade and Companies Register id an official database of all companies and individuals engaged in trade activities in Luxembourg.
Subsidiaries are legal entities with capital that is partially or totally owned by foreign companies. However, the management of the subsidiary is not conditioned by the foreign capital, and the entity is able to handle business contracts, hire employees or issue and transfer shares.
Luxembourg has a policy of maintaining relatively low income taxes and social insurance costs. The total corporate tax is moderate, in comparison with other European countries. Companies that are doing business in Luxembourg are subject to corporate income tax, municipal business tax, minimum tax, net worth tax, Chamber of Commerce contribution and VAT. However, there is no branch tax and no excess profits tax.
