A “class of shares” is a subdivision of a company’s capital that groups together shares or units with specific characteristics. These classes may differ according to various criteria: distribution policy (accumulation or dividend distribution), reference currency, voting ...
The equity of a company represents the total of its shareholders' equity, primarily composed of share capital, share premiums, reserves (legal, statutory, or discretionary), retained earnings, and net income. This constitutes a stable source of financing, as these funds are provided or ...
When forming a Luxembourg SA company (PLC) the articles of association must be signed before a public notary. At least one shareholder is required after the modification to the law of August 2006 which created a single member public limited company. The shareholders can be natural persons or ...
Non-Profit Organization (ASBL) are required to keep accounts and draw up financial statements whose scope and structure are strictly defined by law, depending in particular on the size of the association (or of its special status). Small associations are those which do not exceed (for at ...
The Société par Actions Simplifiée (SAS) is a form of company very comparable to the Société Anonyme (Public Limited Company [SA]), which was introduced into the Luxembourg legal system in 2016 after the Luxembourg legislator had observed the success of the ...
There is among the general population some confusion between the terms « dissolution », « simplified liquidation », « judicial liquidation »… This confusion is partially due to lawmakers themselves: Article 1865 bis of the civil code covers ...
Simplified Limited Liability Companies - LLCs are a variant of the LLC with a few exceptions to the rules governing the typical limited liability company. The purpose of this new type of company is to favor entrepreneurship by limiting administrative contraints.
Since 16th January 2017 it is possible to form a simplified LLC in Luxembourg, also commonly called “1€ LLC”. Would-be entrepreneurs can build their business without the burden of sometimes overbearing regulations.
Luxembourg Public limited liability companies (SA) and corporate partnerships limited by shares can issue bearer shares. There are strict regulations regarding holding and keeping bearer shares. They must be held by a professional depositary (as for example a Luxembourg CPA)
The liquidation procedure of a company occurs in three stages. It starts with the General Assembly which must take place in presence of a notary for PLCs, LLCs and Partnerships Limited by Shares.
Directors of Publicly Limited Companies that bear important losses must enact a special procedure, or risk having their personal liability engaged.
The form of the SPF, Luxembourg's private wealth management company, excludes all forms of partnerships. A Luxembourg SPF must be a SARL, SA, a cooperative or a corporate partnership limited by shares. A Luxembourg SPF cannot have any commercial activity and must be purely a holding, ...
Expertise
Précis du droit comptable
April 2023, publication of the new edition of the Précis de Droit Comptable, by Denis Colin, manager of the Fiduciaire LPG
