The Grand Duchy of Luxembourg is becoming increasingly well-known in the Chinese financial sector. Luxembourg is now the second-largest location for Chinese investment funds after Hong Kong.
At the beginning of August 2017 the China Everbright Bank was authorized by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) to get a banking licence for Luxembourg. Thus, China Everbright Bank is now the seventh Chinese bank which are domiciled in Luxembourg after the other Chinese banks (Bank of China, ICBC, China Construction Bank, Bank of Communication, China Merchants Bank and the Agricultural Bank of China).
In addition to the fact that Luxembourg is a stable and (secure) European country, the advantages for Chinese investors for a Luxembourg holding company are that the Grand Duchy of Luxembourg has the capacity to offer Chinese investors the same services and benefits as other financial centers such as London. The Grand Duchy of Luxembourg is attractive to Chinese investors because it is a gate to Europe.
There are also several tax advantages for Chinese Investors for the so-called “inbound” case, i.e. Chinese investors are investing in European countries such as Germany and Luxembourg to China as well as for the so-called “outbound” case, this means that Chinese investors are investing from China / Hong Kong via Luxembourg to Germany or other European countries. The consideration of Luxembourg as a holding company offers the Chinese investors (tax) advantages because Luxembourg e.g. has a very large network of double taxation agreements with different countries, currently about 75 double taxation agreements are in force.
We support and advise our Chinese clients on the incorporation of (Holding) structures in Luxembourg. Through close co-operation with different (international) partners, we are able to offer tailor-made solutions for our Chinese customers. We offer you a wide range of services in Luxembourg for your company. We manage the accounting and the compilation of financial statements according to (local) LuxGAAP as well as according International Financial Reporting Standards (IFRS) for your Luxembourg company. We prepare your accounts receivable and accounts payable, collection procedures and tax returns for your Luxembourg company.
We also provide you with general and specific Support for the incorporation and set up for your company in Luxembourg. In this context, we offer you assistance with the staffing of managing directors and the board of directors.
We advise you individually and personally for all questions concerning the incorporation and taxation of your company. We will answer your questions you may have and support you to assure the success of your business in Luxembourg.
For more details, see the attached presentation.