Registering your vehicle under a civil company
A civil company (société civile – SC) is a type of company that is often used for civil, agricultural, freelance and intellectual professions.
It is very frequently used for managing immovable assets in the form of a property investment company (société civile immobilière – SCI). Property investment companies (SCIs) are one of the few forms of civil company commonly used in the property field for the management of buildings. Using a civil company to own a property can be an attractive option if the aim is to give this property a commercial nature.
There are four different types of civil company:
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société universelle tous biens présents : pooling all the movable and immovable assets that the parties possess and the resulting profits;
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société universelle de gains : pooling what the parties acquire through their efforts, of whatever type, throughout the life of the company: the movable assets held by the parties over the term of the contract (personally held property only comes in for utilisation purposes);
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société particulière : this status only applies to certain defined items, their usage, or the resulting benefits;
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société civile immobilière (SCI): pooling of professional property in a legal structure which is distinct from the operating business. It is called a société civile immobilière de gestion if its objective is to administer the properties it owns and that it leases to the operator. The net income generated by letting is distributed between the partners.
Civil companies are a common form of company in Luxembourg, especially when it comes to owning property. They are also a popular choice for owning other types of property, particularly movable property between partners, e.g. collector’s paintings, boats, vehicles, etc. Civil companies can also be created to register vehicles provided that the company’s activity is strictly limited to managing, in a responsible manner, the fleet of vehicles owned by the civil company, without being able to carry out any commercial activities (i.e. frequently buying and reselling vehicles with the intention of achieving a profit margin).
AR SERVICES has a simple, fast and inexpensive solution that allows you to register your vehicle in Luxembourg without living there or having a second home there. That way you can avoid ecological penalties and the tax on high-powered vehicles which is in force in some countries. This can lead to savings of up to €30,000 for many vehicles. Our Luxembourg registration solution is both legal and sustainable: once implemented, your current and future vehicles are registered in Luxembourg in line with the strict legal framework.
There are numerous advantages to registering vehicles in Luxembourg:
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If you register your vehicle in Luxembourg, you avoid ecological penalties;
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You also avoid the tax on high-powered vehicles;
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You are protected against losing points and parking fines;
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Your car cannot be seized if it is registered in Luxembourg;
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Option of personalised number plates;
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Tax discretion;
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No capital gains tax.
We have a simple, fast and inexpensive solution that allows you to register your vehicle in Luxembourg without living there. This registration process in Luxembourg requires the creation of a civil company which has no commercial purpose. You won’t have any accounting to manage or any balance sheets or income statements to produce. Nor will this company be subject to the VAT regime, so you won’t have to submit any returns. For this structure to be resident in Luxembourg, the company’s registered office will be established within our accounting and tax firm, which is an obligation in Luxembourg. Once we have set it up, the company will receive a Luxembourg national registration number. With this number, we can apply for a licence plate number from the national vehicle inspection organisation (Société Nationale de Contrôle Technique – SNCT). It’s also possible to apply for personalised Luxembourgish number plates.
In a nutshell:
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No accounting
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No notary
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No minimum capital
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No restrictive management
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Easy to set up
When registering your vehicle under the civil company, we will draw up a deed of sale for the vehicle between your company and the client so that it officially belongs to the civil company. Once the number plates are fitted on the vehicle and we have the documents, the vehicle will have to pass an MOT (contrôle technique) at an SNCT vehicle inspection centre for the registration document to be issued.
​At AR SERVICES, we offer you a comprehensive and optimised service while attaching great importance to the quality of human relations, the respect of your corporate culture, your values and your personal career. Don’t hesitate to contact us – we’d be delighted to answer all of your questions.
