The “European company“
Definition
The ”European company” is a corporation with its own legal personality which must have established branch offices in ate least two other EU member countries.
Advantages of a European company
The articles of incorporation for a European company allows cross-border mergers or re-structuring measures of groups of companies, and eliminates the previous hurdles posed by varying legislation in the individual EU countries, along with the attendant bureaucratic and practical constraints. This means that a European company must no longer establish a complicated network of subsidiaries which are then subject to the respective national regulations, but instead, can do business within the EU by establishing branch offices.
Taxation
In view of taxation, European companies are subject to the same applicable tax regulations as other companies, especially those also applicable to limited liability companies.
Luxembourg as a place of business
Luxembourg offers highly favourable framework conditions for the establishment and administration of a European company.
