A:Luxembourg is a well-known holding company location as under the participation exemption dividends received and capital gains realised on the sale of participations are exempt if certain conditions are fulfilled. This in combination with the favourable provisions of the Luxembourg - Hong Kong tax treaty provides substantial tax optimisation opportunities.
It is important to mention that Luxembourg has one of the most stable political climates in Europe. Luxembourg has rapidly developed into a major European financial centre. Next to the US, Luxembourg has the largest fund industry in the world. This finds its origin in its flexible and secure legal and regulatory environment, favourable tax regime and the internal specialised and multilingual workforce. Hence, ICBC, Bank of China, China Construction Bank and HSBC are all present in Luxembourg next to more than 150 international banks.
Q: What kinds of professional financial services (trust & foundation/corporate structure) can your jurisdiction provide?
A:SOciété de PARticipations FInancières (SOPARFI), is the common name to describe a Luxembourg commercial holding company whose principal activity is the holding of significant financial interests in Luxembourg or foreign companies. Aside from its role as a group parent company, a SOPARFI can also be engaged in activities relating to the management of its holdings.
The holding function can easily be combined with a group financing or cash pooling function.
Q: What are your existing clients from China? What potential clients do you want to attract from China?
A:Most of our current existing clients from China are SOE , choosing Luxembourg to incorporate a holding company for investments elsewhere in the world. With the broad range of services we provide, we are more than pleased to service any type of clients as we have a global vision, and will endeavour to understand our clients businesses, in order to create better links between the European and the Chinese market.
