Registering a Luxembourg Trading Company with Vat number: UK Businesses Love it! - Damalion - Independent consulting firm.

The Luxembourg Simplified limited liability company (Société à responsabilité limitée simplifiée) has been a great opportunity for UK entrepreneurs since the Brexit. Brexit has certainly disrupted UK-EU trade. Due to the current challenges brought about by  the COVID-19 pandemic on both UK and EU, the full extent of challenges that Brexit has on various sectors of the UK economy remains unclear. For UK companies that desire to continue their high-level performance (trading activities with VAT) and efficiency in dealing with companies from EU Member Nations, it may be worth considering looking into setting up their business in the Grand Duchy of Luxembourg.

Registering your Luxembourg Simplified limited liability company (Sarl-S)

Incorporating a simplified limited liability company (Sarl-s) in Luxembourg aims to ease the transition and transformational processes for UK businesses after Brexit. Those with knowledge of the Grand Duchy fully  understand the many benefits it delivers such as  tax efficiency and the reduction of administration costs operating a business in the country.

Since abandoning its former industrial set-up, Luxembourg has been a consistently strong nation that thrives in its private banking, investment, insurance, and corporate lending industries. After Brexit, alternative investment and financial services firms that were based in the United Kingdom decided to relocate their operations in Luxembourg. It is not surprising that more companies are following suit in order to enjoy the many benefits that they used to have when the United Kingdom was still a member of the EU bloc.

According to Luxembourg for Finance studies, the movement of business operations from the United Kingdom has collectively created more than 3,000 jobs in Luxembourg to date. More jobs are expected to become available to workers in the Grand Duchy and neighboring countries as more legal entities based in the UK are taking steps to incorporate their company in Luxembourg.

The Best of Luxembourg trading company to Register in Luxembourg

For small to medium-sized UK companies, the SARL-S or simplified limited liability company is an excellent choice for entering the Luxembourg market. The minimum share capital, straightforward structure, and limited risks makes it the best company structure to incorporate in the Grand Duchy. This new form of limited liability company was launched on 16 January 2017, with the aim to make Luxembourg company formation faster, less costly, and streamlined for young entrepreneurs, including natural persons based in the United Kingdom

The share capital for registering a SARL-S starts at €1 and a notarial deed is not a requirement in most cases, but still leaving room for the possibility of a private deed. In an SARL-S, a company’s Articles of Association will be considered its primary documents and must include a detailed information about the owners, activities, business address, general rules, voting rights, and many more.

For natural persons incorporating a SARL-S in Luxembourg, three requirements must be fulfilled to obtain a business permit:

  • A business should a have physical address in Luxembourg.
  • The fixed address should be in a suitable infrastructure for a company’s nature of business,
  • Determine the scale of activity in running the business.

The Cost of Relocating a UK Company to Luxembourg

The cost of relocating a UK business to Luxembourg through the formation of SARL are influenced by a variety of factors, including:

  • The type and size of the company
  • Assets relocation
  • Documents preparation and processing
  • De-registration costs
  • Related registration fees and additional costs

Relocating your UK company to Luxembourg is beneficial in so many levels after Brexit. To help in making the transition smooth and hassle-free, it’s recommended to talk to our Damalion company formation experts. Contact us today so that we can assist you every step of the way, so your business reaps the many  benefits of doing business as a Luxembourg company.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.