How to Launch a Startup in Luxembourg: A Modern Entrepreneur’s Guide

If you’re looking to launch a startup in the Grand Duchy, here’s your step-by-step guide to getting started.

1. Why Luxembourg Is a Smart Choice for Startups

Luxembourg offers more than just a favorable tax climate. Its appeal for startups lies in a unique mix of benefits:

• Central location in Europe with access to German, French, and Belgian markets
• Multilingual population (English, French, German, Luxembourgish)
• A thriving tech and innovation scene, especially in fintech, cleantech, and logistics
• Strong government support, including grants, incubation programs, and equity funding
• Easy access to EU funding and research networks

Whether you’re building a SaaS platform, launching a biotech venture, or rolling out a sustainable product, Luxembourg offers a stable yet agile foundation for your growth.

2. From Idea to Entity: Choosing the Right Company Structure

Before launching, you need to determine your legal identity. For most startups, one of the following forms is ideal:

• SARL-S (Simplified Private Limited Company) – Great for solo founders or small teams, with low capital requirements (from €1).
• SARL (Private Limited Company) – Popular for scaling startups, with a minimum capital of €12,000.
• SAS (Simplified Joint Stock Company) – Offers flexibility in governance and is well-suited for startups seeking investment.

Choosing the right structure depends on your funding needs, long-term vision, and risk tolerance. It’s a good idea to consult a legal advisor to align your entity with your business model.

3. Registering Your Startup: Step-by-Step

Launching a startup in Luxembourg is refreshingly straightforward, thanks to digital tools and dedicated support centers. Here’s how to make your idea official:

1. Secure your company name and draft your Articles of Association
2. Open a business bank account and deposit your initial capital
3. Finalize incorporation with a notary if required
4. Register with the Luxembourg Business Register (RCS)
5. Apply for a business license (autorisation d’établissement) from the Ministry of the Economy
6. Enroll with tax authorities and the social security system

Need help with incorporation? EasyBiz offers fast, online company formation services, helping founders launch their SARL or SARL-S in just a few days.

4. Funding, Support, and Community

One of the biggest perks of launching in Luxembourg is the support ecosystem available to startups. The government actively encourages innovation and entrepreneurship through:

• Fit 4 Start: A competitive acceleration program offering equity-free grants of up to €150,000
• Startup Luxembourg: A national platform that connects founders to investors, talent, and news
• Luxinnovation: Offers R&D guidance and grant application support
• Technoport and Nyuko: Startup incubators that provide mentoring, office space, and networking

Luxembourg also has a growing pool of angel investors, VCs, and cross-border investors, especially in sectors like digital finance, medtech, and cybersecurity.

5. Building a Scalable Team and Culture

Hiring in Luxembourg means tapping into a highly educated, multilingual workforce. The country offers various incentives for hiring, including wage subsidies and tax advantages for employing certain profiles.

However, competition for tech talent can be high. Many startups supplement their teams with remote roles or hire from neighboring countries. To attract top talent, focus on building a strong mission-driven culture, offering flexible work models, and taking advantage of employee stock option plans (ESOPs)—which are well-supported under Luxembourg law.

✅ Startup Launch Checklist in Luxembourg

✔️ Do you have a validated idea and business model?
✔️ Have you chosen the right legal structure (SARL, SARL-S, SAS)?
✔️ Is your business plan ready for potential investors or grants?
✔️ Have you secured startup capital and opened a local bank account?
✔️ Are you registered with the RCS and licensed to operate?
✔️ Have you explored available funding, accelerators, and incubators?
✔️ Is your team strategy (hiring/freelancers/outsourcing) in place?

Luxembourg is no longer just a hub for global finance—it’s a fertile ground for bold, tech-driven ventures with global potential. If you're ready to move fast, scale smart, and connect with decision-makers across Europe, there’s no better time to launch your startup in Luxembourg.

Read also: https://easybiz.lu/en/blog/register-a-company-in-luxembourg