buying shares in a company in luxembourg
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Buying Shares in a Company in LuxembourgA presentation brought to you by Lawyers-Luxembourg.com
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Starting a Business in LuxembourgForeign investors have several choices when it comes tobecoming owners of aLuxembourg company.
They can register a new company with the Luxembourg Trade Register or they canbuy shares in an existing company.
No matter their choice, each procedure has its advantages.
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How to Buy Shares in a Luxembourg CompanyRegistering a new company is fast and simple, whileshare purchases imply agreeing on the terms of the transaction and signing theshare-purchase agreement.
For information about the legal requirements toopen a company in the Grand Duchy, you may refer to ourLuxembourg law firm.
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Types of Share Purchases in Luxembourg CompaniesForeign investors should know they canbuy shares inprivate and public companies in Luxembourg.
However, theshare purchase proceduresare different for each type of company.
Our lawyers in Luxembourg can also offer information on the sale of shares.
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Negotiations When Buying Shares in LuxembourgDuring negotiations, the representatives of thecompany selling the shares could request the signing of non-disclosure agreements during negotiations.
Also, in order to be completed,share purchasesmust be approved by theFinancial Regulator.
Buyers may also request for all parties with financial or non-financial interests in the company to approve the transaction.
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The Share-Purchase Agreement in LuxembourgBuying shares in private companyimplies the transfer of the shares to the buyer by preparing and signing ashare-purchase contract.
Theshare-purchase agreement will be drafted in accordance with theLuxembourg Civil Law and can be amended during the negotiations.
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Documents Related to Buying Shares in Luxembourg The most important documents to be prepared whenbuying shares in a company in Luxembourgare:
a confidentiality contract, which is drafted by the seller;a letter of intent prepared by the potential buyer;a company due diligence report;a disclosure statement drafted by the seller;the purchase contract prepared by the buyer.
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Why Buy Shares in Luxembourg Companies?The main advantage ofbuying shares in a private company in Luxembourgis that the buyer will acquire the company with all of its assets.
Auction share purchasesare also possiblein Luxembourg, especially in cross-border transactions, however this procedure is seldom employed.
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Assistance in Buying Shares in a Luxembourg CompanyOurlawyers in Luxembourgcan assist you whenbuying shares in a Luxembourg company.
You can alsocontact usif you want to setup a new business in the Grand Duchy.
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Thank you for your attention!For more information, please contact us at:
(+44) 203-287 0408 (for international clients)