Last July, Luxembourg Parliament approved the reform bill that modernizes its 1915 company law.
The law entered into force on August 23, 2016 and will apply to any company incorporated after this date. However, a 24-month transition period has been granted for existing companies to update their articles of association in accordance of the new law.
The new law aims to:
- Regulate certain unwritten usual practices.
- Modernize legislation regarding legal entities from their inception until their dissolution and liquidation.
- Beef-up Luxembourg's competitiveness, adding new rules for attracting foreign investments.
The new law adds flexibility and also enhances legal certainty. It is expected that these changes will make Luxembourg an even more attractive jurisdiction for multinationals as well as businessmen looking to organize their investments internationally.