Holding Company in Luxembourg
Establish a Holding Company in Luxembourg
Updated on Monday 20th November 2023based on 2 reviews.

Quick Facts | |
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Legal entities used | - private limited liability company, - public limited liability company, - tax exempt holding company (SOPARFI), - limited partnership, - co-operative |
Incorporation method | Usual registration with the Luxembourg Companies Register |
Incorporation time | Approx. 3 weeks |
Types of assets owned by the holding | - shares, - real estate, - intellectual property etc. |
Requirment for local bank account (Yes/No) | Yes |
Residency requirements for the founder(s) | No |
Advantages | - tax exemptions, - easy to register, - good reputation of Luxembourg, - access to double tax treaties |
Precautions | Special conditions under the EU Parent-Subsidiary Directive |
Shareholding structure | At least one shareholder |
Minimum capital | - EUR12,400 for private companies, - EUR31,000 for public companies |
Taxation | 21% income tax rate for holdings registered as private and public companies |
Control | Full foreign control of the parent company |
Registered agent requirements | No local agent is required, however, such services are available |
Accounting and reporting | Audited financial statements must be filed no later than 6 months from the end of the financial year |
Number of double taxation treaties | Approx. 80 |
Applicable legislation | Commercial Companies Law |
Availability of various types of holding companies (YES/NO) | Yes |
Types of Luxembourg holding companies | - financial, - operational, - management, - organizational |
Documents required for registration | - Articles of Association, - details of the shareholders, - details of the director(s), - proof of registered address, - bank statement regarding the issuance of the share capital |
Local director required (YES/NO) | No, there is no need to appoint a resident director. |
Management status (natural person/corporate director) | Both natural persons and corporations are accepted. |
Uses of a holding company | - share ownership, - intellectual property ownership, - acquisition of various assets, - controlling other companies |
Access to the EU Parent-Subsidiary Regime (YES/NO) | Yes, as Luxembourg is a member of the European Union. |
Types of shares it can issue | Registered and bearer shares can be issued. |
Requirement to appoint an auditor (YES/NO) | Yes, a holding company must appoint a statutory auditor. |
Special authorization requirement (YES/NO) | Yes, in the case of financial holdings, approval from the Financial Supervisory Commission is required. |
Access to specialized local workforce (YES/NO) | Yes, Luxembourg offers access to financial professionals. |
Possibility to operate in other countries (YES/NO) | Yes |
Requirement to travel to open a holding company (YES/NO) | No, there is no need to travel to Luxembourg to create a holding. |
Holding company registration support (YES/NO) | Yes, our lawyers in Luxembourg offer such a service. |
Forms of the Luxembourg holding company
- A private limited liability company, shortly known as SARL, which is the most popular business form in Luxembourg;
- A public limited liability company, also known as SA, which is suitable for large businesses;
- A partnership limited by shares, also known as SCA, which can be set up by at least two members;
- A co-operative, shortly known as SC, which falls under the prospect of the Luxembourg Civil Code.
Types of holding companies in Luxembourg
- operative,
- financial,
- management,
- organizational.
Requirements for setting up a holding company in Luxembourg
- the company must have a trading name which must be reserved with the Trade Register,
- various documents must be prepared, among which the Articles of Association are essential,
- the company must also have a share capital which must be demonstrated through a bank statement,
- the company must have at least one director, however, specific provisions apply,
- the holding must also have a legal address in Luxembourg prior to incorporation.
Trading name reservation for a holding company
Registered address requirements for a holding
Holding company management in Luxembourg
Share capital requirements for a holding company in Luxembourg
The uses of a holding company in Luxembourg
- for owning shares in one or more companies;
- for owning intellectual property rights;
- for acquiring an inheritance;
- for e-commerce purposes.
The financial holding company in Luxembourg
Taxation of the holding company in Luxembourg
- the corporate tax at a rate of 21%,
- the contribution to the unemployment fund - 4%,
- the share transcription tax - 0.5%,
- the share registration duty - 0.6%.
Why open a holding company in Luxembourg
- tax advantages if the holding company qualifies for the participation exemption regime,
- access to a large network of double taxation agreements,
- easy incorporation and corporate bank account opening procedures compared to other European jurisdictions,
- professional workforce in the financial field which is the country’s most important economic sector.