Luxembourg’s position in Europe : history, economics, life style

Christian-Charles Lauer, Attorney, Lauer & Sartor

TYPES OF COMPANIESWORDING S.A. (public limited) S à R L (private limited)

Name Freeely chosen denomination Business name or freeely chosen denomination

Minimum social capital 31000 € fully subscribed but possibility to pay only ¼ (release)

12500 € fully subscribed and paid (released)

Founders Represented by shares(registered or bearer shares)

Min. one (Law 2006)No maximum of shareholders

Min. one, maximum of 40 partners

Certificate of participation

Administration Board of directors (min. 3)and one chairmanGeneral assembly once a year at least

Director (gérant technique)

No need of a general assembly if the number of partners ≤25

Supervision By an independant auditor No need of an independant auditor if the number of partners ≤25

TYPES OF COMPANIES

IN BOTH CASES THE COMPANY’S HEADQUATER HAS TO EXIST PHYSICALLY IN LUXEMBOURG ANTOHERWISE :

RISK THAT THE AUTHORITIES (tax authorities) CONSIDERED THAT THE REALHEADQUATER ISN’T IDENTICAL WITH THE HEADQUATER INDICATED ANDTHEY WILL RELOCATE THE HEADQUATER AT THE PLACE WHERE THE REAL POWER OF DIRECTION OF THE COMPANY IS EXERCICED.

IN BOTH CASES THE COMPANY’S HEADQUARTER HAS TO EXIST PHYSICALLY IN LUXEMBOURG OTHERWISE :

THERE’S A RISK THAT THE AUTHORITIES (tax authorities) CONSIDER THAT THE REAL HEADQUATER ISN’T IDENTICAL WITH THE HEADQUATER INDICATED

AND

THEY WILL RELOCATE THE HEADQUATER AT THE PLACE WHERE THE REAL POWER OF DIRECTION OF THE COMPANY IS EXERCISED.

ISN’T IDENTICAL WITH THE HEADQUATER INDICATED ANDTHEY WILL RELOCATE THE HEADQUATER AT THE PLACE WHERE THE REAL POWER OF DIRECTION OF THE COMPANY IS EXERCICED.

FROM THE ROCK TO

THE GRAND-DUCHY OF LUXEMBOURG

KEYDATES :

963 : Creation of the earldom of Luxembourg (Lucilinburhuc)

1354 : Dukedom (duchy) and a member of the holy German empire - Luxembourg had three times its actual size

XVIIe : Losing parts along the French border (Louis XIV)

1815 : Losing parts along the German border (fall of Napoleon 1st)

FROM THE ROCK TO

THE GRAND-DUCHY OF LUXEMBOURG

1839 : Losing parts of territories along the Belgium border (creation of the Kingdom of Belgium)

1839 : * actual size* own monarchy , still in place today (the house NASSAU -WEILBURG)* independent* national identity

1842 : Membership in the « Zollverein »

1868 : Slipping of the fortress

1911 : Creation of A.R.B.E.D.

1914 : First World War

1918 : End of the first World War

1933 : Second World War

1940 : Invasion of the German troops & forced annexion of Luxembourg to

Germany

1942 : General strike against the Nazi regime (21 death sentences)

1945 : End of the World War

FROM THE ROCK TO

THE GRAND-DUCHY OF LUXEMBOURG

1945 : Founding member of the UNO (United Nations Organization)

1949 : Founding member of the NATO (North Atlantic Organization)

1951 : Founding member of the CECA (European Steel & Coal Community) with its headquarter in Luxembourg

70’ : Development of the financial sector (149 banks nowadays)

1999 : Adoption of the Euro as scriptural money

FROM THE ROCK TO

THE GRAND-DUCHY OF LUXEMBOURG

2002 : Introduction of the Euro

2003 : * Creation of the Luxembourg University

* development of research activities (medical, biotechnical)

* development of the ICT sector

FROM THE ROCK TO

THE GRAND-DUCHY OF LUXEMBOURG

NOWADAYS

Hosting of important European institutions :

- European Court of Justice (1st and second degree of juridiction)

- European Investment Bank

- European Court of Auditors

- European Agency of Official Publications

- A number of services of the European Commission

- Secretariat general of the European Parliament

- Eurostat (European statistic office)

- Sessions of the council of ministers (April, June & October of each year)

NOWADAYS

• Luxembourg counts today 9,500 European servants.

• Today’s population : 502,066 persons including foreigners (43 % of the

total population).

• Each day 135,400 persons are non-resident workers coming from our

neighboring countries (France, Belgium & Germany).