About 22% of GDP of this small country comes from the financial sector. Competent legislation significantly contributes to the capital inflow in fairly huge amounts. What specifically is so good about Luxemburg to conduct a business here? Basic advantages:
- no currency exchange regulations;
- double taxation agreements signed with lots of countries including Russia;
- high reliability of the county`s banking system;
- high level of the banking secrecy, real names of accounts holders as well as transactions with these accounts can be disclosed under no conditions;
- anonymity of directors (directors are public persons) including the possibility to issue shares to bearers;
- a wide range of legal entity forms;
- simplified taxation and reporting.
Some negative issues that are lacking in some other offshore zones shall also be mentioned here. Registration of an offshore in Luxemburg requires submission of financial reports to the state authorities. The Report shall specify the information about the balance of assets and liabilities as well as financial performance for the reporting period. Upon generation, the Report shall be verified by an auditor and then it shall be approved by shareholders at the General Meeting. This is applicable to large companies, while those companies that employ less than 50 employees can avoid such audits. However, the reports will still have to be submitted on an annual basis.
In Luxemburg limited liability companies and holdings shall have rather impressive amount of capital assets that shall be paid immediately and in full. There is one more unpleasant moment here – you cannot just purchase an offshore in Luxemburg, the legislation of the country prohibits such transactions. However, at the same time, if you establish a firm within this zone, you will not get close attention from your domestic state services. Owning of an enterprise will not affect the business reputation since Luxemburg is not a conventional offshore zone; it is a far more serious jurisdiction.