is a prolific business destination and support for a wide range of startups with foreign ownership. The startup ecosystem in Luxembourg
and the social entrepreneurship are sustained by a stable and developed economy, and by a government focused on the attraction of foreign investments in a large percent. A startup in Luxembourg
can be registered with complete support from our team of company formation agents in Luxembourg
who can help foreign entrepreneurs with the formalities involved.
What are the main steps for opening a startup in Luxembourg?
Local and international investors must, first of all, choose a business entity when deciding on opening a startup in Luxembourg
. In most of the cases, SARL or the limited liability company
is the proper business option for investors in Luxembourg. The following steps and guidelines explain the ways in which a startup can be registered:
- Choose the business form in agreement with the future operations – SARL is often chosen by small entrepreneurs in Luxembourg.
- Decide on a business name and make verification with the Trade Register in Luxembourg.
- Prepare the Articles of Association – these are the constitutional documents of the startup, with information about the owners, general rules, business address, and many more.
- Open a bank account and transfer the minimum share capital requested. In the case of SARL, EUR 12,500 is the minimum share capital.
- Obtain the blocking certificate from the bank, a document that shows the minimum share capital has been drafted. With this document, the company can be incorporated.
- Apply for a business license if applicable for the future activities of your startup in Luxembourg.
- The registration for VAT, one of the most important tax in Luxembourg is made with the Land Registration and Estates Department, where a declaration must be submitted.
- If your company will have employees, the registration for social contributions is needed.
- The registration of a startup in Luxembourg can be overseen by one of our company formation representatives in Luxembourg, so you can talk to us at any time.
Reasons to consider Luxembourg a great destination for startups
The business climate in Luxembourg is extremely tempting to international investors who benefit from a series of advantages, starting with a stable business environment and ending with a wide range of encouragements and support. Luxembourg
aligns with major innovation hubs worldwide and it can be easily accessed from all over the world. Here are other benefits to consider Luxembourg as a great destination for your startup:
- • About 45% of the population is represented by foreigners in Luxembourg, so your startup will have an international viewpoint from the beginning.
- • The stable economy and the multitude of business possibilities are Luxembourg’s strong points.
- • The tax regime is advantageous for foreign investors in Luxembourg, mentioning that the corporate income tax is set at 15% rate.
- • The registration formalities of a startup in Luxembourg are quite simple, and you can solicit our support if you want us to represent your startup in this country.
Why make investments in Luxembourg?
Besides the above-mentioned reasons to choose Luxembourg for business
, foreigners also consider the multilingual and skilled workforce, the encouragements and incentives offered by the government for small and medium entrepreneurs, plus the protection of the double taxation treaties signed with numerous countries, to avoid the double taxation of incomes. Small and medium-sized companies in Luxembourg
can enter all sorts of governmental programs to receive long-term credits and capital grants, such as, the National Credit and Investment Corporation in Luxembourg. We have also gathered some interesting facts and figures that describe in large lines the business and the economy of Luxembourg:
- • approximately USD 165,000 million was the total FDI stock for Luxembourg in 2018;
- • Luxembourg ranks 18th on the Global Competitiveness Index for 2019;
- • the 2020 Doing Business report issued by the World Bank ranks Luxembourg 72nd out of 190 economies in the world;
- • 50% of the FDI received by Luxembourg came from EU countries.
It is recommended to have comprehensive support and guidance for opening a startup in Luxembourg
, and that to make sure that all the procedures are respected. If you need support and extra information in company formation in Luxembourg
, please feel free to contact
our team of consultants.