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.
Double taxation refers to the fact that two countries collect simultaneously taxes on the same company. This situation often arises when companies have subsidiaries or branches in various countries.
Luxembourg is a small country in Western Europe and it comprises of two principal regions: Oesling in the north part and Gutland in the south. Due to its central location in Europe, it always had a great strategic importance for numerous other countries that established commercial or financial business relationships with Luxembourg.
The best option to open a holding company in Luxembourg is a SOPARFI. A SOPARFI is a resident company in Luxembourg that is fully taxable, but has the advantage of participation exemption and may benefit from double tax treaties signed by Luxembourg with more than 70 countries as well as from provisions of the EU parent – subsidiary Directive.
Residents or non – residents of Luxembourg have the possibility to open a bank account. Opening a bank account in Luxembourg s a necessary step to incorporate a company in Luxembourg, as the minimum required share capital must be deposited with the bank.
