TRADING COMPANY IN LUXEMBOURG

Any trading company shall be daily managed by an individual who is holding a Trading license. This licence is delivered by the Middle Classes Ministry.

 

The operation and running of the company depend on such approval, in compliance with legal provisions (qualifications, competences, real activity in Luxembourg) ; indeed it is compulsory for the company to be authorized to invoice clients.

PROCESS OF TRADING COMPANY FORMATION

 

The business setting up follows this process:

  1. Trading licence application form : it takes around 6 weeks by the Ministry to make a decision.

  2. Bank introduction and share capital paid.

  3. Company formation with M&A creation, formation in front a Notary, directors choosen.

  4. Company registration at the different administrations (Company House, VAT, Social Security)

It is recommended to have its own offices in some cases like the following :

  • The company intends to hire staff

  • The company performs specific activities such as retail trade, road transport, etc

You can either set up a private limited company or a limited liability company. The corporate status is linked with the use of the company and your aims.

 

TRADING COMPANY TAX RATES

A trading company in Luxembourg is not a tax exempt company.

 

Trading company income tax rate on profits is 28,59% in Luxembourg city.

 

Some activities are likely to have specific taxation rates, we need to analyse your project to give your proper business tax advice before the formation of the company

 

A withholding tax of 15% is applicable on dividends distributed to its shareholder (Individual or non European Union corporate shareholder or corporate shareholder located in a jurisdiction which has not signed a non-double taxation agreement with Luxembourg).

 

OUR SERVICES FOR LUXEMBOURG TRADING COMPANY

As certified public accountants in Luxembourg we provide all the services concerning trading licence application, company incorporation, bank account introduction, business tax planning and preparation, bookkeeping services, payroll accounting, income tax returns, etc