Healy Consultants reviews Luxembourg's 1.1.1 concept

SINGAPORE - Dec. 8, 2016 - PRLog -- The government of Luxembourg is in the process of enacting a new bill under a concept dubbed 1.1.1 which translates to company formation by one person, with one euro in one day. The concept which aims at simplifying the registration process and cutting down on entrepreneurs' expenditure, is still under review and should be finalised by the end of this year in time for the new law to be enacted on the targeted date 16^th January 2017. This new type of entity will be known as the "Sàrl Simplifié" or Sàrl-S. The concept is specifically aimed at entrepreneurs interested in setting up a business in Luxembourg that does not require large sums of starting capital to be invested in the country to obtain business approval.

"The 1.1.1 company is certainly an interesting structure for individuals, but in order to make any business a success, you need a good business plan and sufficient capital to invest into it," summarised Karl Horsburgh, a chartered accountant and expert in Luxembourg taxation. (source – Wort (http://www.wort.lu/en/business/the-new-1-1-1-company-can-...))

The Sàrl-S registration will apply to companies that have satisfied the qualifications required for a trade licence and can be registered with an amount of minimum capital ranging between €1 upto a maximum of €12,395.

However, it is worth noting that while creation of the 1.1.1 company will be simplified in terms of capital requirements and facilitated by the ease of establishing an entity via the One-Stop shop, business licence application procedures and costs will remain the same as for any normal LLC. Business licence application usually costs upto €2,000 depending on the type of business and the business consultants used during incorporation, whereas monthly social security costs on average are approximately €300. Luxembourg's Chamber of Commerce, has created a One-Stop Shop called House of Entrepreneurship (http://www.houseofentrepreneurship.lu/en/home/) as a show of commitment from the government's effort to ease the company formation process and attract foreign direct investments. With this concept in the horizon, the future of entrepreneurship in Luxembourg is optimistic.

About Healy Consultants

For over a decade, the incorporation experts at Healy Consultants Pte Ltd., with their branch in Luxembourg, have been assisting investors worldwide to set up the optimum corporate structure for doing business in the country. The services offered include company registration, banking solutions, accounting and tax and legal services and corporate support services.

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To inquire more about Luxembourg company setup options and schedule a conference call, email us at email@healyconsultants or call us on +65 6735 0120.