International tax advice

Domiciliation of Companies

LAW of 31 May 1999: Establishing Company Domicile

1. The domicile of a company is determined when the company becomes permanently established, and is considered to be where its Registered Office is located.

2. The law stipulates that a 'domiciliation', for a company, involves setting up a third party office ('Servicing Office’) through which to carry out an activity in the framework of its by-laws, and having this third party provide services linked to this activity. The company must sign a written 'convention de domiciliation' (Domicile Agreement) with its 'Servicing Office’. Not everyone can be a 'Servicing Office’ for companies. The Domicile Agreement is concluded with a 'Servicing Office’, whose professional duties are based on the ‘Know-Your-Customer’ procedure. So it is important for the Office to know the owners of the company and the identity of all the people who are involved in managing the company.

3. The 'Servicing Office’ activity is only open to certain categories of professionals, who are chartered by a legally acknowledged Supervisory Authority. All companies with a domicile or a secondary domicile in Luxemburg are subject to this law.

4. A Company, its Shareholders, Management and Servicing Office risk very serious Criminal Penalties in case of breach of this law.

5. Are also deemed 'Domiciliataire', any company who accept that another company belonging to the same group of companies, establish in its office or perform from its office its activity and the company provide services linked to this activity (administration, mail management, notifications, accountancy,... )

6. For Professional of the Financial Sector who accept to act as a Servicing Office, the Supervisory Authority requests the company to justify of a university degree and a working capital of EUR 370 000.

7. Persons who render services of formation and management of company are deemd to be 'Domiciliataire' and must justify the same qualifications.

Any information on Domiciliation can be asked to FIDOMES S.A

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