Holding Company in Luxemburg
Luxemburg has the most attractive conditions for holding companies. On the present, an about 11,300 such holding companies are active in Luxemburg. Holding can adopt some of the forms of business companies mentioned above.
At a Public Limited Corporation (the most frequent form) there must be a minimum capital investment of 31,000 EUR even in holding company and from the sum 25,000 EUR must be paid. However, if another rather rare form of Limited Liability Company is chosen, a basic capital must be 25,000 EUR (paid to its full extend).
The expenses for formation are comparable with any other business company.
Holding Company must not
- perform commercial and industrial activity
- own immovable assets (with the exception of its own office premises)
- Offer services for compensation
- Provide the third-party borrowings
Holding Companies can
- have an arbitrary number of shares in other companies, buy and sell them on condition that they are not speculative transactions.
- own the patents that cannot be business-sold, except for a case when a profit from sale would be invested into the securities within a year.
- own business companies that distribute goods of the participating companies beyond Luxemburg.
- issue the debenture bonds in any currency up to ten times the amount of
the paid-up assets.
- emit shares in an arbitrary amount.
- accept money from shareholders and banks only - maximally up to triple the amount of the paid-up assets.
Holding Companies are subject to duty only to fees for investment and a yearly prepayment fee they are free from all other taxes.
Investment Fee is caused by formation and does 1% of the nominal basic capital, in case of a fusion it is dropped.
Prepayment Feewas increased to effective stock values and does 0.20 %.
FOREIGN TRADE SERVICES AUSTRIA (AWO)