Ordinary Luxembourg company
|Ordinary Luxembourg company|
|Applicable legislation||Law of 10 August 1915 (“1915 Law”)|
|Authorisation and supervision by the CSSF||No|
|Qualification as an AIF||Non-AIF, unless activities fall within the scope of article 1 (39) of the AIFM Law.|
|Exemption from AIFMD full regime under lighter regime (AIFMD registration regime)||Possible.|
|Risk diversification requirements||No risk diversification requirements.|
|Legal Form||- SA, Sàrl, SCA
|Capital requirements||Depends of the form:
- SA / SCA: EUR 30,000
- Sàrl: EUR 12,000
No minimum capital requirement for other legal forms.
|Required Luxembourg service providers||Registered auditor in principle not required unless the company is an AIF managed by an AIFM with AUM above the threshold or two of the following criteria are met:
(i) net turnover above EUR 8.8 million,
(ii) balance sheet above EUR 4.4 million and
(iii) average number of employees above 50. However, depending on the legal form of the company, there may be an obligation to appoint a commissaire aux comptes.
|Possibility of listing||Yes|
|European passport||No, unless it falls under the scope of the full AIFMD regime.|
|Net asset value (NAV) calculation and redemption policy||Not required.|
|Overall income tax (corporate income tax and municipal business tax)||General aggregate rate: 24.94%, but 100% exemption for dividends, liquidation proceeds and capital gains from qualifying participations.|
|Subscription tax||No subscription tax.|
|Wealth tax||0.5% on the NAV on 1 January.
Since 2017, this minimum net wealth tax for holding and finance companies (known as the Soparfis) - the fixed financial assets, intercompany loans, transferable securities and cash at bank of which exceed both 90% of their gross assets and EUR 350,000—is fixed at EUR 4,815 per year. The minimum net wealth tax for all other corporations has not changed; in other words, it is EUR 535 for companies with a total balance sheet up to EUR 350,000.
|Withholding tax on dividends / interests and capital gains||Dividends distributed by a Luxembourg company are in principle subject to withholding tax at a rate of 15%, unless a domestic law exemption or a lower tax treaty rate applies.|
|Benefit from double tax treaty network||Yes|
|Benefit from the EU Parent Subsidiary Directive||Yes.|
|Thin capitalization rules (debt-to-equity ratio)||No provision in Luxembourg law. However, there is a specific administrative practice.|
|Practical use||Holding and financing activity, commercial activity, holding of IP, etc.|