Luxembourg has created a global services package with advantages for Israeli companies that want to launch their business in Europe. This presentation describes Luxembourg's legal system, history, economics and lifestyle. It was created as part of the Luxembourg/Israel Business Initiative which is led by P&TLuxembourg's TERALINK unit. The law firm of Lauer and Sartor contributed this presentation.

1. Luxembourg’s position in Europe :
history, economics, life style
Christian-Charles Lauer, Attorney, Lauer & Sartor

2. FROM THE ROCK
TO
THE GRAND-DUCHY OF LUXEMBOURG
KEYDATES :
963 : Creation of the earldom of Luxembourg (Lucilinburhuc)
1354 : Dukedom (duchy) and a member of the holy German empire -
Luxembourg had three times its actual size
XVIIe : Losing parts along the French border (Louis XIV)
1815 : Losing parts along the German border (fall of Napoleon 1st)

3. FROM THE ROCK
TO
THE GRAND-DUCHY OF LUXEMBOURG
1839 : Losing parts of territories along the Belgium border
(creation of the Kingdom of Belgium)
1839 : * actual size
* own monarchy , still in place today (the house NASSAU -WEILBURG)
* independent
* national identity
1842 : Membership in the « Zollverein »
1868 : Slipping of the fortress

4. FROM THE ROCK
TO
THE GRAND-DUCHY OF LUXEMBOURG
1911 : Creation of A.R.B.E.D.
1914 : First World War
1918 : End of the first World War
1933 : Second World War
1940 : Invasion of the German troops & forced annexion of Luxembourg to
Germany
1942 : General strike against the Nazi regime (21 death sentences)
1945 : End of the Second World War

5. FROM THE ROCK
TO
THE GRAND-DUCHY OF LUXEMBOURG
1945 : Founding member of the UNO (United Nations Organization)
1949 : Founding member of the NATO (North Atlantic Organization)
1951 : Founding member of the CECA (European Steel & Coal Community)
with its headquarter in Luxembourg
70’ : Development of the financial sector (149 banks nowadays)
1999 : Adoption of the Euro as scriptural money

6. FROM THE ROCK
TO
THE GRAND-DUCHY OF LUXEMBOURG
2002 : Introduction of the Euro
2003 : * Creation of the Luxembourg University
* development of research activities (medical, biotechnical)
* development of the ICT sector

7. NOWADAYS
Hosting of important European institutions :
- European Court of Justice (1st and second degree of juridiction)
- European Investment Bank
- European Court of Auditors
- European Agency of Official Publications
- A number of services of the European Commission
- Secretariat general of the European Parliament
- Eurostat (European statistic office)
- Sessions of the council of ministers (April, June & October of each year)

8. NOWADAYS
• Luxembourg counts today 9,500 European servants.
• Today’s population : 502,066 persons including foreigners (43 % of the
total population).
• Each day 135,400 persons are non-resident workers coming from our
neighboring countries (France, Belgium & Germany).

9. TYPES OF COMPANIES
WORDING S.A. (public limited) S à R L (private limited)
Name Freeely chosen denomination Business name or freeely
chosen denomination
Minimum social capital 31000 € fully subscribed but 12500 € fully subscribed and
possibility to pay only ¼ (release) paid (released)
Founders Represented by shares Min. one, maximum of 40
(registered or bearer shares) partners
Min. one (Law 2006) Certificate of participation
No maximum of shareholders
Administration Board of directors (min. 3) Director (gérant technique)
and one chairman
General assembly once a year at least No need of a general assembly
if the number of partners ≤25
Supervision By an independant auditor No need of an independant
auditor if the number of
partners ≤25

10. TYPES OF COMPANIES
IN BOTH CASES THE COMPANY’S HEADQUARTER HAS TO EXIST PHYSICALLY
IN LUXEMBOURG OTHERWISE :
THERE’S A RISK THAT THE AUTHORITIES (tax authorities) CONSIDER THAT THE
REAL HEADQUARTER ISN’T IDENTICAL WITH THE HEADQUARTER INDICATED
IN BOTH CASES THE COMPANY’S HEADQUATER HAS TO EXIST PHYSICALLY
AND IN LUXEMBOURG ANTOHERWISE :
THEY WILL RELOCATE THE HEADQUARTER AT THE PLACE WHERE THE REAL
POWER OF THAT THE AUTHORITIES (tax authorities) CONSIDERED THAT THE REAL
RISK DIRECTION OF THE COMPANY IS EXERCISED.
HEADQUATER ISN’T IDENTICAL WITH THE HEADQUATER INDICATED AND
ISN’T IDENTICAL WITH THE THE HEADQUATER AT THEAND
THEY WILL RELOCATE HEADQUATER INDICATED PLACE WHERE THE REAL
THEY WILL RELOCATE THE HEADQUATER AT THEEXERCICED.
POWER OF DIRECTION OF THE COMPANY IS PLACE WHERE THE REAL
POWER OF DIRECTION OF THE COMPANY IS EXERCICED.