Flags of Convenience FOC about Luxemburg Maritime Flag Register Ships of the World

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The Luxemburg Maritime Flag , not known by many people is growing very fast as one of the most

famous Maritime Flags in the World.(whilst NOT being a Flag of Convenience- FOC)
Although Luxemburg , centrally located in Europe , has not really an important harbor ,

the Government has established the Maritime Registry which allows Shipping Companies from all over the

   World to apply for a Serious Quality Flag whilst not being offshore.
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   Why to Choose for the Luxemburg Flag ?
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   Luxemburg is a Member of Europe and offers a quality Image and is the cheapest Flag in Europe.
   Your clients like to deal with serious incorporated Maritime Operators
   It is More easier to compete against other Offshore and Traditionnal based Operators.
   The Lowest Social Security charges in Europe for the Mannings are here .

Conditions	Synopsis

Authorised Activities	Maritime companies active in Buying , Selling , Chartering or Management of Ships
The Ships Manager	A Local Ships Manager in Luxemburg has to be appointed and will be representing your Company against the Administration
Classification	VERITAS - Lloyd's Register - NKK - RINA - American Bureau of Shipping
Crewing	The Captain has to be a EEC National
	Luxemburg will endorse all Licensesholders as per the STOW 95 Convention
	Every seaman must hold a Luxemburg Seaman's Book and have a Social Security plan
Tonnage	Minimum 25 tons
Aging	15 years limit
Licenses	Authorisation of doing Business in Luxemburg
	Authorisation of the Maritime Administration
Finance	Leasings and Ships FINANCE AND INSURANCE POSSIBLE
VAT	Shipping companies are exempt of Vat
Profits	Luxembourg does not levy any tax on profit repatriation by a branch to its head office
Tax structure	Luxemburg Maritime Companies can be owned by holdings or simular tax reducing vehicles
Seaman TAXES	The personal Taxation rate is 10 % only

TAXES

Maritime Company Taxes

Example

New Ship owned by the Shipping

Company 0 %
Example of Bareboat Charter

However this can be diminuated 12 %
(via appropriate structure )

Social Security contribution in Luxembourg

Social Security Contributions

Amounts
Seaman Officer

                                                         EMPLOYEE      EMPLOYER
                        Health insurance
                        Pension insurance
                        Accident insurance
                        Dependence insurance
                        Medical check-up
                        Total contribution rate   16.44%    11.48 %

Value Added Tax (VAT)
    Article 43, al 1 i) of the Luxembourg tax code,
    implementing the 6th EU Directive states that
    services to the shipping industry shall be exempt from VAT.
    The following services are covered by this provision:
                 the chartering or hiring of seagoing ships
                 which transport fare-paying passengers or the
                 conducting on of commercial, industrial or fishing activities,
                 the chartering or hiring of ships used for life
                 saving or providing assistance at sea;

                 the rendering of services other than those
                 identified above for the direct benefit of ships
                 at sea and their cargoes.

Moreover, there is no VAT on the purchase or the resale of a ship.

First year	Euro per Ton	Registration
Age of the Ship	Years	Years	Years
Net tonnage	0-5	5-10	10-15
25-500	0,90	0,95	1,00
501-5000	0,85	0,90	0,95
5001-25000	0,80	0,85	0,90
25001 and over	0,75	0,80	0,85
Second year	Euro per Ton	Registration
Age of the Ship	Years	Years	Years
Net tonnage	0-5	5-10	10-15
25-500	0,90	0,95	1,00
501-5000	0,85	0,90	0,95
5001-25000	0,80	0,85	0,90
25001 and over	0,75	0,80	0,85

Setup Incorporation Charges

Total Price for The Setup
of a Maritime Company in Luxemburg :
.

   Description:
   ◘ Setting up of the Incorporation
   ◘ Memorandums Statutes
   ◘ Notarial Filings
   ◘ Register of Commerce
   ◘ Filing for the Register Maritime and Licenses
   ◘ Filing for the Social Security if applicable