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Jump-Starting Entrepreneurship! DOING BUSINESS IN LUXEMBOURG JUMP-STARTING ENTREPRENEURSHIP! Q1 2017 A WORD FROM THE CHAIRMAN CHAIRMAN’S REMARKS © Fernando Bento Paul-Michael SCHONENBERG Dear AMCHAM members and friends, us. If you do not like something, please tell us part of and contribute to these committees (as as well. If you have suggestions, please pass well as the long standing committees) please Welcome to the Winter issue of our AMCHAM them to us. Please be involved with us by at- let us know. Luxembourg magazine, Connexion! We hope tending our events, contributing your time and your New Year has gotten off to a good start ideas on our committees, and helping via spon- Also during this New Year we will strengthen and we hope this year will bring you and your sorship. our partnerships with the Lions Club Luxem- families happiness, success and good health. bourg-Amitié , The Network, International Com- And please encourage your friends and busi- munity Center, TIGFI and other best-in-Luxem- We in AMCHAM have started this year with ness connections to join us as members. bourg organizations. We believe we best serve the biggest membership we have ever had… you by partnering with the best rather than do- and for this we thank our member companies, We believe 2017 will be a year of challenges: ing everything just by ourselves. committee members and our friends for all of Brexit and economic uncertainty, the new gov- their contributions and support. Our AMCHAM ernment in Washington, the ongoing refugee Thanks again for your support, is your AMCHAM. We are here to serve you, crisis, the global challenges of terrorism and to meet your needs, to provide the networking, regional conflicts. We will work hard to offer as- With respect and my best wishes, information, problem solving and governmental sistance and information to help you deal with lobbying our members have asked us to deliver. these issues…and to be successful. We never forget you are the boss, not us. We never forget we are here to serve. To this end, during 2017 we will launch new committees for Audit and Compliance, Corpo- Paul-Michael Schonenberg To help us to best serve you, we ask for your rate Services in the Fiduciaries area, and a Sen- Chairman and CEO feedback and communication…and your active ior Committee to help those entering the third involvement. If you like something, please tell phase of their lives. If you are interested to be 2 Q1 2017 CONTENT CONTENT SPECIAL FEATURE The 1.1.1. Company ...................04 AMCHAM COMMITEES How to Tweet Your Company to Success ............11 The 1.1.1. Company and Its Tax Considerations . ..............9 Real Estate in Luxembourg: What You Should Know, What’s New? (Part 2) ...............................16 Managing the First Hour of an It Crisis ..........................17 AMCHAM’s 2016 Christmas Lunch ...24 LANGUAGE LEARNING From 5 to 7 Languages ...............18 a Marc Devillet (Autopolis Bertrange), COMMUNITY NEWS Minister Félix Braz (Ministry of Justice), Paul Schonenberg (AMCHAM Luxembourg), An Evening of Summer Culture ........12 Carlo Thelen (Chamber of Commerce Luxembourg) 8 Fall Welcome at the U.S. Embassy in Luxembourg ..........14 AMCHAM’s Thanksgiving Dinner 2016 ............20 Farewell to Ambassador McKean ..............26 Making Integration Work ..............32 INFORMATION TOOLBOX Directors’ Role and Responsibilities in the Context of Reading, a Understanding, and Approving Financial Statements ..................15 Family Business in Europe - Talent Wars, Innovation, Karl Horsburgh and Charging Ahead ..................23 (B.U.R.O.S.) 9 Why is Digital Economy a Real Revolution? Facts & Vision. .....25 EXPAT PROFILE SNAPSHOTS Find out about Malek Aouini - Lahmadi 28 Malek Aouini - Lahmadi ...............28 our upcoming events Paul Schonenberg ....................30 3 Q1 2017 SPECIAL FEATURE The simplified private limited company (SARL-S) or THE 1.1.1. COMPANY Minister Félix Braz (Ministry of Justice) Dear Ladies and Gentlemen, ed in July 2016, it will only enter into force by means of the so-called “fake self-em- on 16th January 2017. Indeed, it needs to ployment”. To reassure you, this question More than a year has now passed since I be reminded that several technical adapta- has been discussed at the Parliament and presented to this audience the features tion need to be done in order to guarantee I have consulted the Minister of Labour of the simplified private limited company that the system is fully operational. In this in order to ensure that this should not be (or SARL-S). I therefore warmly thank the regard, an implementing regulation with an issue hindering the introduction of the American Chamber of Commerce for giving the objective to tackle these questions has SARL-S in our Company Law. And, as I had me today the opportunity to share with you been submitted to the State Council and we indicated in front of this audience, the con- the progress made on this new instrument. have received its opinion as well as those sultation resulted in the common view that from several professional Chambers. My the question of the “fake self-employment” As you know, the draft bill creating the department has now considered all the is a horizontal issue which could arise in any SARL-S has been filed with the Parliament questions and observations raised in these form of company, so that the SARL-S law in February 2015 and following publication opinions and is currently finalizing the draft was certainly not the right place to tackle of the draft bill, Professional Chambers and regulation which should be, and has to be, this question. the State Council submitted their opinions adopted before the end of this year. quite quickly, making it possible to carry out Now, as I just mentioned, the draft regula- the legislative procedure in a good pace I would like to recall an important ques- tion is close to being finalized. The objective and enabling the Parliament to adopt the tion that had been raised last year on the of this Regulation is to implement the law bill which has become the law of 23rd July SARL-S at the American Chamber of on the SARL-S and in particular, to specify 2016. commerce: the Chambre des Salariés had the practical rules applicable when setting indeed expressed its concern in its public up a SARL-S. With this regard, it is important to note that opinion that the introduction of the simpli- whereas the law on the SARL-S was adopt- fied SARL would give rise to major frauds 4 Q1 2017 SPECIAL FEATURE The necessity to provide for specific rules this condition is fulfilled. In order to make the 2013 Law on identification at the time is mostly linked to the following features this possible, the draft regulation will grant of the registration of the SARL-S with the which differ from the general regime appli- power to the Trade and Company Register Company and Trade Register. cable to the classic SARL: to refuse any registration of a SARL-S in the case where the founder is a legal person or In correlation with the obligation to provide 1. The possibility to set up an SARL-S where the founder is a natural person but their identification number, the new founder by means of a private deed, already a shareholder of another SARL-S. will have to file a copy of the identity card or thus making optional the recourse any other equivalent identification paper if to a notary; In addition, as I already mentioned, the the founder is not a resident. Now, once the SARL-S to be formed may only carry out SARL-S has been formed, it is to be men- 2. The fact that only natural persons activities for which a business permit is tioned that the law on the SARL-S will apply may be founders or shareholders needed in accordance with the law of 2 only if specific rules have been provided for of an SARL-S; September 2011 governing the access to the SARL-S; otherwise the rules applicable the professions of skilled craftsman, trader, to the classic SARL shall apply. 3. The fact that a natural person manufacturer, as well as to certain liberal can only hold shares of one professions. For example, with respect to the manage- simplified SARL at the same time; ment of such a company: if you look at the Now you may ask how the Trade and Com- new article 202-6 in the SARL-S law, it is 4. The fact that a SARL-S may only pany Register will be able to check this con- foreseen that only natural persons can be- exercise activities for which dition upon registration of the company? In come the manager (gérant) of a SARL-S. As a business permit is required. order to work out a simple fluent system, the this is the only specific rule, the manage- Ministry of Justice worked closely together ment of the SARL-S will be governed for all As it is already possible for the limited part- with The State Centre for Information Tech- other issues by the general rules governing nership (société en commandite simple) or nologies (CTIE), the Trade and Company the classic SARL. the cooperative company (société coop- Register and the Ministry of Economy. erative), amongst others, the new law now As you can see, the legal framework apply- opens the possibility for the SARL-S to be The new mechanism can be summa- ing to the SARL-S has been carefully de- formed by the means of a notarial or private rized as follows: signed in order to make this new instrument deed.
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