SOPARFI in LuxembourgUpdated on Friday 10th June 2016
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Luxembourg is one of the most representative states for fund domiciliation, as it provides a legal framework advantageous for both local and foreign investors. Luxembourg is amongst the top five wealthiest countries in the world, with a highly developed economy based on financial, legal and banking industries. Foreign investors interested in opening a business in Luxembourg can incorporate the company as a SOPARFI (Societe de Participations Financieres), which is a trading company liable to local taxation; our experts can provide you with information on the main benefits of a SOPARFI in Luxembourg.
Characteristics of a SOPARFI in Luxembourg
A SOPARFI is a financial holding company which is fully liable to taxation on income, such as the corporate income tax or value added tax. In order to minimize the taxes to which a SOPARFI is liable to, the company can reduce its business activities to holdings investments.
Under the Luxembourg legislation, a SOPARFI is allowed to carry on various commercial activities, as stated in the articles of associations of the company. If the company carries out commercial or industrial activities, it is compulsory to obtain a trading license from the Ministry of Small and Medium Sized Businesses, Tourism and Housing.
A SOPARFI in Luxembourg can be incorporated by a natural or legal person, regardless of the place where the person is tax resident; you can receive more information on the tax residency from our financial specialists in Luxembourg.
The legislation applicable to a SOPARFI is the Law on Commercial Companies; since the SOPARFI has the legal statute of a regular company, it can benefit from the provisions of the double taxation treaties signed by Luxembourg.
Legal forms of SOPARFI in Luxembourg
Investors interested in opening a SOPARFI in Luxembourg should know that they can incorporate the company under one of the following legal forms:
• public limited company;
• private limited liability company;
• partnership limited by shares;
• cooperative set up as a public limited company;
• European company.
If you need further information on the SOPARFI in Luxembourg, please contact our financial specialists, who can provide you with assistance for the incorporation of a company according to your business interests.