Infographic: How To Start A Startup In Luxembourg
(released by STARTus MAGAZINE)
Published on: April 26, 2017
Luxembourg is focusing on innovation on all levels: from bio- & fintech, social entrepreneurship, robotics, or IT - if these interest you, it's time to find out more about the country's startup ecosystem!
In its history, the country has experienced success on many levels: it has been able to adapt from an industry focused on steel to becoming a strong financial place, in terms of fund management only second to New York. The transformation has begun and there’s not end in sight!
Pros & Cons Of Luxembourg
Learning from the best is always a good idea, and in this case, it’s about setting up your HQ. Many international companies such as Amazon, AOL, Apple iTunes, eBay, PayPal, Skype, Microsoft, and Sony have located their European HQ in Luxembourg, not only due to its geographical location, easily connecting it to Germany, France, or Belgium.
This unique mixture of local and international potential makes the country very cosmopolite as more than 45% of the population are from foreign countries. If you’re seeking to have an international outlook for your startup from day one, you definitely should consider Luxembourg as a place to found. The diverse population also makes the country an interesting test market as a lot of different cultures are present.
After Qatar and Liechtenstein, Luxembourg can present itself with the highest GDP per capita globally. It allows for the country to offer cutting-edge infrastructure, notably regarding IT and network connectivity, which are essential points for many digital startups (SaaS, broadcasting, gaming, etc.).
As it’s a comparably small country in terms of population, it’s relatively easy for a startup to become a national leader quickly. Another plus that comes with the small size is the easy access to economic and business decision-makers. However, as many advantages as a small market might have, it also requires building a startup with the ability to expand at a rapid pace, as the home market can become too small quickly.
Starting a business in Luxembourg also requires a “business permit”, which sometimes can be an administrative burden. One more obstacle that aspiring entrepreneurs face, is the needed startup capital of 12,500 Euros to create a company. But there is hope this situation will change in the near future, as discussions are held in political and business circles to simplify the process of setting up a LLC (SARL), named the “111 company” (1 day, 1 person, 1 Euro).
As you’re familiar now with the ups and downs of this European startup hub, take a look at our infographic & find out about key players and opportunities: