Is the search for legal certainty a new phenomenon?
Not really. The pursuit of a stable and predictable legal framework has always been a central concern for companies and their executives. However, the international context has profoundly evolved in recent years. Geopolitical tensions, economic uncertainties, and the proliferation of regulatory developments have heightened the sense of instability. In this context, economic actors are placing greater emphasis on institutional stability and the clarity of the legal framework within which they structure their activities.
How is this trend reflected in practice?
In corporate law practice, this trend is reflected in the growing number of group reorganisations and corporate migrations within the European Union, referred to as “cross-border conversions” under the law of 17 February 2025 transposing Directive (EU) 2019/2121 (the “Mobility Directive”) into Luxembourg law. These mechanisms allow a company to transfer its registered office from one Member State to another, while maintaining legal continuity, and ensuring continuity of its operations.
In practical terms, such operations enable, for example, an international group to reorganise its structure by centralising certain functions in a jurisdiction offering a more stable framework, while maintaining operational activities across multiple countries.
We also observe that some partners and directors incorporate these reorganisations into a broader reflection on their professional and personal situation. Many choose to establish their primary residence in a European Union Member State offering a stable legal and economic environment, such as Italy, Portugal, or Luxembourg.
What role does Luxembourg play in this dynamic?
Luxembourg, located at the heart of Europe, benefits from a well-established reputation for political, economic, and legal stability, notably reflected in its AAA sovereign credit rating. Its legal framework, particularly in corporate law, combines flexibility with legal certainty, while effectively meeting the needs of international groups.
However, supporting such operations requires a comprehensive approach. Within our firm, the Corporate team works closely with the tax and employment law teams to address all aspects of these transformations, whether related to group restructurings, cross-border conversions, or relocation projects for executives to Luxembourg.
In an increasingly uncertain international environment, this multidisciplinary approach is essential to sustainably support our clients in their structuring and development projects. Legal certainty therefore emerges as a key factor in the strategic decisions of companies and their executives.