Understand the Jurisdictions Setup Requirement Before Proceed Your Luxembourg Company Formation
If you are looking for an opportunity to invest in Europe, Luxembourg is great for business investors because of the developing economy. In addition, a lot of foreign companies have set up an office in Luxembourg because they do not make company registration so complicated. You can start by asking about the market’s situation, on the kind of company you must set up as a foreign investor, and other formalities. Luxembourg company formation is a great venture for any entrepreneur because it is also a passage to larger European markets. Luxembourg is an attractive business location because of its political and economic stability. They have a multilingual and skilled workforce. Not to mention their favourable tax and legal environment.
Luxembourg Company Formation
The company must register in the Trade and Companies Register after submitting the Articles of Association. Company owners must submit the subsequent amendments or changes made. The founders who are not getting help from the public notary can register company deeds but must be deposited for the purpose of publication registration within one month. If the company was incorporated while giving help to the public notary, the deeds must submit to the register.
Luxembourg Company Formation Requirements
- You must first open a bank account for the company where the required minimum share capital must be deposited. This is the first step to take because the procedures could take time based on the KYC.
- Chose a company name- When you are opening a company in Luxembourg, there are no set rules about the name, but it should be unique. In order to check if your chosen name is available, send a request to the Trade and Companies Register.
- Pick a company structure – There are a couple of business structures to choose from, but the most common is the limited liability company (LLC) and the SA (public limited company). What differentiates them from each other is the amount of required share capital. 12,500 euros for LLC and 31,000 euros for SA.
- Articles of Association draft – These documents are the most important when it comes to opening a company in Luxembourg. They contain the basic company charter to become legal and to make third party business commitments.
- Deposit share capital – This must deposit to the bank. The amount would depend on the kind of business structure chosen to open a company in Luxembourg, while the minimum contribution is not the same for LLC and SA. The cash investment in the company also varies.
- Certification from the bank – After depositing the share capital, the bank issues a certificate which can use as a notary confirmation that the share capital mentioned in the Articles of Association to prove it has been deposited. The company can now be incorporated and they will block the share capital.
- Notarize the Articles of Association – The documents will present to the notary, which completes the registration procedure. The notary will then send the recorded documents to the Trades and Companies Register. After that, the company will be published in the Official Bulletin of Luxembourg.
- The certificate must send to the bank – After incorporating the company, the notary will issue a deblocking certificate that will send to the bank. The bank will use the certificate to release deposited funds so they become available for the company to use.
- If necessary, apply for a business certificate.
A Luxembourg company formation is an opportunity you must grab because it will open many gates to other European markets. In addition, they have an easy registration procedure. You should contact 3E Accounting for any business registration assistance in Luxembourg you will need to complete the process. They will surely help you out.