There are a number of reasons to start an innovative company in Luxembourg. Firstly, the country and its legislation make it quite easy to conduct a business. There are a number of regulations related to import, export and taxation. Secondly, there are a number of prestigious and easily accessible research institutions, both private and public working together in innovating. Thirdly, the government supports and encourages innovations with grants and loans. Besides, private funding is also accessible. And last but not least, Luxembourg has an impeccable ICT infrastructure, making it easy to connect with other parts of Europe in order to conduct business.

This type of company is not a business form itself but can be one of the suitable types. In order to form an innovative company, the company’s articles of association must be recorded by a notary. After this, these articles of association must be published in the Official Bulletin (Memorial C) and applied to Luxembourg Trade and Companies Register.

An innovation company is usually one of two common types:

  • Public Limited Company (PLC., Corp./SA)
  • Limited Liability Company (LLC., Ltd./SARL)

However, there is no legal restriction for the type of company that an innovative company can be formed as. The important thing is to choose a legal form based on the nature of business activity, the available capital to be invested, the number of shareholders, the nature of shareholders’ relationships, and the business objectives.

There are several sectors under the innovation umbrella including: automotive, Cleantech, creative industries, finance, health sciences and technologies, ICT, logistics, manufacturing, space and timber processing. A company can serve one or multiple purposes based on its chosen sector or sectors. Additionally, the company is required to follow all regulations set by Luxembourg Financial Market Authority supervising it. Depending on the company type, annual accounts may be required to be produced by an independent auditor.

The following are all the types of taxations in Luxembourg: corporate tax (corporate income tax, municipal tax, solidarity tax), net wealth tax, withholding tax, income tax, value added tax, subscription tax. Depending on the business and legal form of the company, the company may not be liable to some of these taxes. Under certain circumstances, exemptions from one or more of these taxes might also occur.

Innovative companies with subsidiaries outside Luxembourg, but with its registered office and main place of management within Luxembourg, may be able to benefit from DTAs that Luxembourg has with other countries. This means that these companies are not required to pay taxes to different countries.

Innovative Company

  • Statutes and bylaws drafting
  • Notary fees
  • Application for VAT
  • Business permit
  • Power of attorney
  • Capital bank account
  • Tax advise