Luxembourg

Basic law for formation	Companies Act 1915; Holding Companies Act 1929 and 1990
Type of company available for offshore business	Holding Company 1929, Holding Company 1990 (SOPARFI)
Out-of-territory income taxed	Yes, but no capital gains tax
Minimum number of Directors	3
Minimum number of shareholders	S.A.: 2 / S.a.r.l.: 1
Shares unregistered to a name	S.A.: yes / S.a.r.l.: no
Standard share capital	S.A.: 70,000 EUR / S.a.r.l.: 20,000 EUR
Local secretary necessary	Yes
Tax report obligatory	Yes
Audit obligatory	S.A.: yes / S.a.r.l.: only if 25+ shareholders
Annual state tax	No
Companies registered in 2008	6 300

Luxemburg companies are most often used as holdings, hold and administer shares in affiliation all over Europe, and outside too. Main reason: if they meet certain conditions, they do not tax dividend income or capital gains. Holding companies under the 1929 Act is also free of many other tax classes, but is not allowed to utilize anti double taxation treaties, which represents a major setback; however utilizing a SOPARFI is a workaround.