Luxembourg, with its well-developed transportation network, modern ports, and highly educated workforce, is a hub for international trade and a prime location for starting an export-import business. This guide will provide a comprehensive overview of the steps and information needed to create a successful export-import business in Luxembourg.
Types of Export-Import
Luxembourg is a hub for a wide range of export-import activities, including but not limited to trucks, cars, agrifood, and more. Whether you’re looking to import raw materials or export finished goods, Luxembourg’s favorable business environment and strategic location make it a great choice for your business.
Luxembourg is home to many large international companies that have chosen the country for their trading operations, including: Amazon, Cargill, Dell, ArcelorMittal, Goodyear, FedEx, and others. These companies benefit from Luxembourg’s favorable business environment, efficient logistics, and skilled workforce.
Legal Structures for Export-Import Companies
When starting an export-import business in Luxembourg, entrepreneurs have several legal structures to choose from, including:
- SARL (limited liability Company) with a minimum share capital of €12,000.
- SARL-S (Simplified Limited Liability Company) with a minimum share capital of €1.
- SA (public limited company) with a minimum share capital of €31,000.
Getting Your Business Permit
To start an export-import business in Luxembourg, the following steps must be followed:
- Choose a legal structure for your company.
- Register your company nearby the Luxembourg Business Register, providing the necessary information.
- Obtain any necessary licenses and business permits nearby the General Directorate for SMEs.
- Hire employees, if necessary.
Taxation in Luxembourg
Luxembourg has one of the lowest corporation income tax rates in Europe, with an overall tax rate of 24.94%. This includes a corporate income tax rate of 17% and a municipal business tax of 6.75% for companies located in Luxembourg city. Additionally, Luxembourg has one of the lowest VAT rates in Europe, at 16%.
Having a Local Representative
To ensure a smooth process for starting your export-import business in Luxembourg, it is recommended to have a local representative to facilitate communication with local authorities. This local representative can assist with the various steps involved in starting a business in Luxembourg, from registering the company to obtaining necessary licenses and permits.
Starting an export-import business in Luxembourg offers entrepreneurs a favorable business environment and strategic location. With its well-developed transportation network, modern ports, and highly educated workforce, Luxembourg is a great place to grow your business. By following the steps outlined in this guide and seeking assistance from a local representative, you’ll be well on your way to creating a successful export-import business in Luxembourg. Contact your Damalion expert now.
