The Luxembourg financial centre offers a diverse range of financial services connecting investors and markets around the world.
The financial centre’s unique cross-border expertise attracts financial service providers from around the globe, while Luxembourg’s capital markets infrastructure makes it the ideal place for companies of all sizes to finance their European and global activities.
Luxembourg provides an operational hub for many international financial institutions. Cross-border activities such as private and corporate banking, fund administration and custody, wealth management and treasury services, are run fluidly and effectively from the Grand Duchy.
Luxembourg has been able to build a unique ecosystem for the banking industry, which knits together various service providers including investment services, FinTechs, family offices, wealth planning, real estate management and philanthropy; as well as third-party management companies, international listing and post-trade services – all this with the infrastructure and regulatory expertise needed for the success of the industry.
A first mover in the implementation of European fund regulation, Luxembourg has played a pivotal role in opening up markets for international fund distribution and providing European retail and institutional clients access to international investments.
Luxembourg-domiciled investment funds are distributed in over 70 countries, with a particular focus on Europe, Asia, Latin America and the Middle East.
The world’s leading asset managers have chosen Luxembourg as the centre for their international fund ranges. The Grand Duchy offers unrivaled international expertise as well as a wide-ranging toolbox of investment vehicles.
Luxembourg’s insurance professionals have decades of experience developing solutions to meet the challenges faced by multinationals and highly mobile world citizens.
As with banks and investment funds, insurers rely on Luxembourg’s international talent and expertise. Sales teams speak the client’s language. They also know how to provide insurance products to clients across the EU, which are fully in line with local regulations and tax rules.
Capital markets play a key role in supporting economic growth by allocating capital to projects that help create jobs, provide public services, build infrastructure and drive innovation. Luxembourg’s capital markets infrastructure and unique international expertise make it the perfect place for companies of all sizes to finance their European and global activities.
Continuously driving innovation, Luxembourg has grown to become an international leader in debt capital, a key hub for securitisation and structured finance vehicles, as well as an acknowledged platform for hosting landmark international IPOs.
The advantage of the Luxembourg capital markets offering is that it can be used exactly where it is needed and can blend perfectly into an international structure with non-Luxembourg elements.
The Grand Duchy has been actively engaged in the microfinance industry since the early 1990s with the establishment of the first Luxembourg microfinance institutions.
Today, Luxembourg is the global leader in inclusive finance and has a 61% market share of global assets under management in Microfinance Investment Vehicles (MIVs).
The financial centre acts as a leading international platform for sustainable finance, supporting a range of activities from responsible investment funds and blended finance to green bond listings and ESG fund labelling.
Luxembourg has a dedicated national FinTech platform: the Luxembourg House of Financial Technology (The LHoFT). Charged with building and fostering Luxembourg’s burgeoning FinTech ecosystem, the LHoFT brings together financial institutions, FinTech innovators, research, academia and public authorities, to help drive forward the development of products which meet specific industry needs.
The LHoFT also makes connections with other FinTech nodes around the world, encouraging domestic and international collaborations, working groups and initiatives.
When FinTechs from out of town arrive in Luxembourg, looking for a tech-friendly base from which to explore the European Single Market, the LHoFT is there to help them settle in, grow and make the right connections.Luxembourg has many sources of private and public funding available to boost the development of FinTech companies, not just as start-ups but throughout their life.
A considerable number of FinTech companies, including leading industry players in e-commerce and e-payments, such as PayPal, Amazon, and Rakuten, have chosen Luxembourg as their European hub.
Global FinTech pioneer Paypal has been operating out of Luxembourg since 2007 with a full banking license, allowing it to offer a broad range of services to its customers across the EU with a single license, as does Rakuten.
Main activities in FinTech:
Luxembourg is a long-standing partner to the financial communities of Muslim countries in Asia and the Middle East.
To these markets the Grand Duchy offers financial services that can be designed and delivered to conventional or Islamic finance standards. This makes Luxembourg an ideal base from which to offer shariah compliant products and services to European Muslims.
The key features of a Luxembourg Company Formation are:
Many investors choose to set up a company in Luxembourg because this country is very attractive for foreign businessmen due to the stability in the economy. Luxembourg provides a unique low-tax environment for international investors.
A Luxembourg Société à Responsabilité Limitée (Sàrl) is the most common form of company in Luxembourg and benefits from a high level of confidentiality as the directors of the company do not appear on public records. This type of company is a legal entity that is separate from the individuals who run it.
Tax Information for your Luxembourg Company Registration
The tax rate for companies incorporated in Luxembourg is 21%.
Companies that earn less than 15000 EURO must pay a rate of 20%. Companies that earn more than 15000 EURO pay a rate of 21%. A 7% surcharge is also applied to the employment fund and municipal business tax.
The Company Name for a Luxembourg Company Formation may be in any language, however they may need to be translated to French or German if requested by the Company Registrar. The name must end in the word Sàrl.
Words suggesting links to licensing industries, such as banking are not permitted and will not be accepted.
Directors, Shareholders and Secretary
Only one director is required for a Luxembourg Company Registration. There are no restrictions on the Directors Nationality or residency. We recommend that one director of the company is resident in Luxembourg or the European Union as certain industries require a business licence.
Only one shareholder is required, however there is a maximum of 40 shareholders. There are no restrictions on the nationality or residency of the shareholders. Details of the shareholders are available for public view. Nominee shareholders can be used to ensure confidentiality. The company must hold an annual general meeting if the company has more than 25 shareholders.
The minimum value per share within a Luxembourg company formation is 25 EURO and the minimum share capital is 12,500 EURO, which must be fully paid up.
Annual Requirements for your Luxembourg Company Registration
All companies are required to file Annual Tax Returns. They must also file Annual financial Statement, these are not required to be kept in Luxembourg.