Types of Companies in Luxembourg: A Simple Guide (Including Shelf Companies)

Thinking about starting a business in Luxembourg? The first big decision is the legal form of your company. Pick the right one and everything from banking to taxes gets easier. And if speed matters, there is another option worth knowing about: buying
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What Does It Cost to Run a Luxembourg Company?

Setting up a company is only part of the cost. Here is what a Luxembourg company pays and files each year, using the 2026 rates. Corporate income tax Corporate income tax (CIT) is 16% in 2026. A reduced rate of 14% applies
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Buying a Luxembourg Shelf Company: A Due Diligence Checklist

A shelf company is meant to be a clean, ready-to-use vehicle. Before you buy, you should confirm that it is. Here is a practical checklist. 1. Confirm the company exists and is in good standing Ask for a current extract from the
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Substance for a Luxembourg Company: What It Means and Why It Matters

Registering a Luxembourg company takes days. Making it look like a genuine Luxembourg business takes more. That gap is called substance, and it increasingly decides whether tax and banking benefits hold up. Why substance matters Luxembourg offers a wide treaty network, a
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The Luxembourg Participation Exemption Explained

The participation exemption is the main reason international groups use Luxembourg holding companies. It removes a layer of tax on dividends and gains from qualifying subsidiaries. Here is how it works in practice. What it does A Luxembourg company that holds a
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