2. General Information
not many business formalities
a country that favors foreign investment
a tradition in service businesses
3. More than 10 types of companies:
Private Companies Limited By Shares (Ltd)
Limited Liability Partnership (LLP)
Public Limited Companies (PLC)
Companies Limited By Guarantee
Property Management Companies
Unlimited Companies
& more.
4. Practical considerations (1) :
amount of capital & financial risk
nature of trade
service or product business
premises or can be run from home
employees
attraction of capital
5. Practical considerations (2) :
Simple formation = sole trader or partnership
More sophisticated business= incorporation
6. Proposed form for startups
LTD (Private company limited by shares)
key feature: it offers limited liability to its
members
members and directors are not personally
liable (unless they have acted wrongly in some
way)
7. LTD (Private company limited by shares)
no minimum capital
can control your exposure to financial risk
at least 1 director, 1 shareholder and 1
secretary (can be the same person)
submit simplified accounts not full at the
Companies House
8. LTD (Private company limited by shares)
no local shareholders or directors required
company can be set online in a few days
registered office facility
9. A second choice:
The Limited Liability Partnership (LLP)
A hybrid between limited liability companies
and traditional partnerships.
10. The Limited Liability Partnership (LLP)
registration & filing of accounts at the
Companies House
members’ agreement
pays no UK tax but its members do pay income tax
may not attract foreign investment.
11. Public Limited Companies (PLC)
usual for large enterprises minimum
capital requirement of £50,000
A private company limited by shares can be
converted into a public company and vice versa.
.
12. Do not forget:
Liability for insolvent trading
Bank borrowing
Landlords – personal guaranties
Privacy vs ‘image’
.
13. COST (indicative prices):
250 euros - same day formation
1200 – 1800 euros - accountant costs per year
Professional advice by lawyer (?)
15. GENERAL:
economic prosperity
excellent banking system
attractive for foreign investments
.
16. 6 main company types:
o Private Limited Company (Sarl)
o Public Limited Company (SA)
o General Corporate Partnership (SNC)
o Limited Corporate Partnership (SCS),
o Corporate Partnership Limited by Shares (SCA) and the
o Cooperative Company (SC).
.
17. o Private Limited Company (Sarl)
the most attractive type for start-ups
.
18. Private Limited Company (Sarl)
o requires 1 or several associates that can be
o Luxembourg or foreign nationals, residents or non-
residents
o minimum capital €12,500
o registered office is required in Luxembourg
o must be incorporated before a notary public
o business license by a ministry on application.