On the 13th July 2016 Luxembourg adopted Bill 5730, which is hoped will modernise and streamline its corporate environment.
Whilst the bill is very comprehensive and at times somewhat complex some of the more positive aspects of the new law are highlighted below:-
- Sole shareholders are now possible
- One-step liquidation is now possible to dissolve a company under certain conditions
- Shares can now be issued either free or below par value#
- The minimum share capital has been decreased to 30,000 EUR for limited companies and 12,000 EUR for LLC’s
- There has been an introduction of a new corporate vehicle known as ‘Societe par actions simplifiee’ (S.A.S), which operates more on a contractual basis
The new bill brings about the most substantial changes to Luxembourg’s corporate environment for some decades and it is hoped that it will cater to modern international finance demands and strengthen Luxembourg’s status as a business friendly jurisdiction.