Lex Fori International LawyersINCORPORATE IN LUXEMBOURG
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WHY INCORPORATE IN THE FIRST PLACE?

Sole proprietorship of a business, or direct ownership of assets is simple with limited restrictions. Why bother with the cost and complexities of creating a corporate structure?

Because these simple solutions have their drawbacks: unlimited personal liability, limited capital, taxation of profits as personal income, obligation to use personal credit to secure business loans. In addition they disappear after the death of the owner.

A corporation has a continuous existence even after the death of its creator or beneficial owner. It enables one to separate business assets from personal assets. It preserves, under certain circumstances, the confidentiality of the beneficial owners and their assets. It allows the financial participation of others.

In many instances, a foreign corporate structure offers protection against high income and capital taxes, death and gift duties, expropriation or confiscation by hostile governments.

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