Offshore Company Formation Luxembourg 1929 Holding

General Information

Luxembourg is a small country in Central Europe bounded by France, Germany and Belgium. It has a land area of about 2,600 sq. km. and a population of 470,000. It was originally founded in 963 and has been an independent State since 1815. Its borders have changed over the centuries as a result of conflicts in Europe. The capital and financial centre is Luxembourg.

The Grand Duchy of Luxembourg is a parliamentary democracy with a constitutional monarchy. Executive power is exercised by the Grand Duke together with the prime minister and cabinet. Legislative power vests in a directly elected Chamber of Deputies. It is a member of the European Union.

A Luxembourg holding company is incorporated in the form of a Societe Anonyme and its status is defined in the law of 31st July 1929. A holding company is generally deemed to mean a company, which has as its sole objective the acquisition of any form of participation in other Luxembourg companies, or foreign companies, as well as the management of the said participation. There is a minimum capital requirement and it is limited to the activities it is permitted to carry out.

The Luxembourg Holding Company pays no corporation, income or capital gains tax and no tax on liquidation. It is generally excluded from benefiting under double taxation treaties.

The European Commission has instructed Luxembourg to end the special tax status of the 1929 Holding company by 2010.
 

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