Why choose a SARL?
An LLC in Luxembourg has a number of benefits. It is particularly beneficial due to the limited liability of the shareholders. These shareholders are only liable up to the amount of their contribution to the company’s share capital. Thus, creditors cannot pursue personal assets of shareholders to pay business debts. Additionally, an advantage of an LLC in Luxembourg is the flexibility in taxation compared to other legal forms. Thirdly, since the business structure of an LLC is simple, the administrative formalities are reduced and the minimum capital is low.
Why choose a SARL-S?
A major benefit of a SARL-S is the limited liability of the shareholders since they are only liable up to the amount of their contribution to the company’s share capital. Thus, creditors cannot pursue personal assets of shareholders to pay business debts. A SARL-S is also beneficial since it does not require a significant investment. For those with limited capital to invest, a SARL-S provides flexibility since the minimum capital is 1 EUR. Thirdly, since no notary act is required in order to register this type of company, the registration process is relatively easy compared to other legal forms.
Why choose a SA?
A PLC in Luxembourg has a number of benefits. It is particularly beneficial due to the limited liability of the shareholders. These shareholders are only liable up to the amount of their contribution to the company’s share capital. Thus, creditors cannot pursue personal assets of shareholders to pay business debts. Another advantage of a PLC is that anyone can invest and therefore, there are more options for funds. Additionally, the risk is more spread out as more people buy shares. This company also benefits from the ability to issue shares that are easily transferable, that is, bearer shares.
Why choose a SECS?
The major benefit of a Limited partnership is the options for the type of shareholder one can be. For limited liability partners, their liability for debt is limited to their contribution. Therefore, it is easier to obtain financing from other parties who wish to invest in a company while having limited liability. Additionally, since there is no need for a notary or no requirement for the partnership agreement to be made public, the registration process is speedy. Also, confidentiality can be maintained as the identity of limited partners are not required to be released. Another benefit of a Limited Partnership is the exemption from taxation as a business. Therefore, non-resident partners are not taxed under Luxembourg taxation laws.
Why choose a SENC?
An advantage of a General Partnership is that the business is not subjected to taxation. Therefore, non-resident partners are not taxed under Luxembourg taxation laws. Another advantage is that this type of business is easy to establish since the paperwork is relatively simple. There is no minimum capital required to register a SENC so another advantage is that this type of company can work regardless of income, property or growth expectations. Also, only two shareholders are required to start the company and since there is no maximum number of shareholders, there are a lot of options for funding.
Why choose a SECA?
The major benefit of a Partnership Limited by Shares is the options for the type of shareholder one can be. Since partners can have varying liability, there are a number of associated advantages: firstly, a general partner with unlimited liability can increase the company’s capital without decreasing their own power, and secondly, limited partners can invest without being liable beyond their contributions. Thus, financing can be attained from other parties who wish to invest in a company while having limited liability. Also, confidentiality can be maintained as the identity of limited partners are not required to be released.
Why choose a European Company?
There are a number of advantages to forming a European Company, particularly one with its registered office and central place of management in Luxembourg. Firstly, this type of company eliminates a number of legal and administrative barriers related to conducting business on a regional level. It allows for cross-border interaction with a large pool of partners. Additionally, a business operating in multiple countries can now be subject to one set of protocols and rules instead of altering each office for the national regulations of that location. A European Company in Luxembourg is subject to the same taxation as a PLC. This is advantageous since a PLC in Luxembourg is offers flexibility in taxation compared to other legal forms. Also, Luxembourg’s double taxation agreements with other countries can reduce the amount of taxes a European company is required to pay as compared to if it were based in another country.
Opting for a sole proprietorship in Luxembourg holds distinct advantages for entrepreneurs. As a sole proprietor, you have complete control over decision-making, enabling swift and independent business operations. Luxembourg’s business-friendly environment and efficient registration processes make it seamless to establish a sole proprietorship. Additionally, being the sole owner simplifies administrative procedures, reducing complexity in compliance and reporting. Enjoying direct access to profits and streamlined tax obligations, sole proprietors in Luxembourg benefit from a favorable tax regime. This business structure not only provides autonomy but also capitalizes on Luxembourg’s supportive ecosystem for entrepreneurial endeavors.
