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Luxembourg - DOING BUSINESS


Local business incentives


The government, in Luxembourg, has implemented a number of financial, tax or social incentives in order to attract foreign investors.
Subsidies are granted to small and medium-sized companies through the National Investment Credit Company (SNCI) for retail companies, restaurants or hotels. Furthermore, new businesses or companies creating new activities benefit from a tax exemption on the communities income tax (IRC) as well as a commercial tax exemption up to 25% for 8 years. Investors should contact IDELUX, the Economic Development Agency, in order to get further information on investment opportunities.


Legal forms of companies


Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Private Limited Company   Minimum 2 partners
Maximum 40 partners
NB: 1 member for a sole proprietorship.
  		12,500 € totaly subscribed   Liability is limited to the amount contributed.   1% of the capital amount.   Yes  
Public Limited Company   Minimum 2 shareholders.
  		31,000 € with 1/4 released at the creation.   Liability is limited to the amount contributed.   1% of the capital amount.   Yes  
General Partnership.   Minimum 2 partners.   No minimum capital.   Partners' liability is joint and several on obligations and debts of the company.     No  
Limited Partnership.   Minimum 2 partners.
Two types of partners: active partners and sleeping partners.   		No minimum capital.   Active partners' liability is joint and several. Liability of sleeping partners is limited to the amount contributed.     No  
Cooperative Company   Minimum 7 partners   No minimum capital   Partners' liability is joint and several or divided, unlimited or limited to amount contributed depending on the status.     No  


Registration and licensing procedures


Articles of incorporation for companies are laid down in a notorized deed, which has to be registered and filled with the Luxembourg Formanity Center of the Chamber of Commerce and published in the official gazette. Further information is provided by the leguichet.org website.



Foreign exchange control


As for currency exchange control, limitations are under the responsibility of the Belgium and Luxembourg Institute of Exchange (IBLC). There are no exchange controls between Belgium and Luxembourg. Free repatriation of profits and capital is carried out with no limitations from the IBLC.


Regulations concerning equity investment


A majority holding interest in the capital of a local company is legal in Luxembourg.  


FDI inflows in Luxembourg




FDI inflows (millions US$) 2000 2001 2002 World rank
Foreign Direct Investments (F.D.I.) 117218   91055   57000   4 / 196
Sources : UNCTAD Database FDI/TNC


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Last modified in December 2003
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