Luxembourg is one of the most important financial centers in the world and in Europe, however, the last few years have also brought significant evolutions of other industries than the financial one. Opening a company in Luxembourg is quite simple thanks to straight forward registration and licensing procedures. When it comes to the business form to bring the most benefits, setting up a Luxembourg limited liability company can satisfy the needs of both local and foreign entrepreneurs.
Apart from the two important benefits mentioned above, there are other advantages linked to the process of company formation in Luxembourg. We invite you to read about some of them below.
The attractive business environment offered by Luxembourg
One of the main benefits of opening a company in Luxembourg has to do with the business climate the government offers. Safety, professionalism and numerous incentives are available for those interested in starting a business in one of the most appreciated countries in Europe.
When considering that Luxembourg hosts most of the European Union’s institutions, those seeking to operate at a larger scale in the EU will find it easy to obtain all the approvals they need if they set up their companies here.
The multicultural and multilingual workforce
While in other European countries the workforce is a problem due to the lack of specialists, Luxembourg is appreciated for this. Citizens from all over Europe, as well as other countries come here based on specific work permits which will make it easier for companies to hire them.
The fact that most of the employees working in Luxembourg companies speak German and English is another plus when it comes to international companies doing business in other countries.
The taxation system benefits for companies in Luxembourg
Taxation is another benefit related to starting a business in Luxembourg. The actual tax system was created in order to tax companies based on their size. There are small companies which benefit from a 15% income tax on corporate profits, while large companies are subject to an 18% corporate tax. The municipal tax and the solidarity surcharge should also be taken into account when it comes to the taxation of companies in Luxembourg, however, the Grand Duchy remains very attractive from a taxation point of view.
Ranking first in terms of administration efficiency, Luxembourg is definitely worth considering for starting a business. The country also offers a stable market and many industries in which investors can thrive, at the moment Luxembourg boasting no less than 11 developed industrial clusters.