The new procedure, which came into force on February 1, 2023, speeds up the removal of "empty shells" companies from the Luxembourg Trade and Companies Register, with the aim to reduce length and costs.
Companies must meet three criteria to be subject to this sanction: involvement in activities contravening company, commercial or criminal law provisions, absence of assets and absence of employees.
The procedure allows for a rapid dissolution of companies without liquidation, completed within six months of opening of the procedure.
Excluded from this regime are civil companies, certain banks, insurance companies, funds and law firms registered on the Luxembourg Bar's list V.
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