Public Limited Company in Luxembourg

The Public limited company gives many advantages for investors. Shareholders have better access to capital – raising share capital from existing and new investors. Shareholders are able to buy and sell their shares and the value of the firm is shown by the market capitalization which is based on the share price. SA also gives the opportunity to more easily make acquisitions by offering shares to the shareholders of the targeted firm and gives a company more prestigious profile.

The SA is often the legal form of company chosen by large businesses, but it can also be used, as the shares in this type of company can be bearer shares and are therefore more easily transferable.

Public Limited Company incorporation procedure

Here is Public Limited Company incorporation procedure divided into 7 stages: 

Stage 1: Identify shareholders and directors

For registering a Public Limited Company, a minimum of 1 shareholder and 3 directors are required. Shareholders can be individuals or companies, but only individuals can become directors of the SA.  

Shareholders are the persons holding shares in a company and directors of company are responsible for the management of the company affairs and legal compliance under various laws.  

Stage 2: Identify the location and share capital of the company

It is important to have a proper address for the registered office of the company. A public limited company should have share capital at least 30,000 Euro. 

Stage 3: Company Name Application

Before proceeding with the incorporation process, company name application has to be filed for getting approval from the RCS.  

Stage 4: Execution of company registration documents

After the company name is approved, the company incorporation documents have to be executed by the promoters in the prescribed format.   

Stage 5: Submission of company registration documents to the RCS

Prepared company registration documents have to be submitted to the RCS for registration of the company. Usually in couple of days company is registered. 

Stage 6: Company registration and certificate of incorporation

The RCS will register the company after due verification of submitted documents and will issue the Certificate of Incorporation. 

Stage 7: Filing Commencement of Business Declaration

A public limited company cannot start its business immediately unless declaration is filed by directors stating that all subscribers paid subscription money in such manner.