START-UP.LU
Succeed in establishingyour innovative company
in Luxembourg2015 © Luxinnovation, the National Agency for Innovation and ResearchThis publication is cofinanced by:

LET’STURN YOURINNOVATIVEIDEA INTOREALITY!
Stimulating the creation of innovative companies
and encouraging entrepreneurs with innovative
business ideas is crucial for Luxembourg. It isalso one of the key missions of Luxinnovation.
As the National Agency for Innovation andResearch, we operate at the heart of the nationalinnovation system and strive to enhance thecompetitiveness of the country’s economy throughresearch, innovation, creativity and design.
Luxinnovation offers a wide range of integrated and tailor-made services to an international
community of entrepreneurs with innovative projects across all sectors, from the very beginningand throughout the whole process of developing
well-established, flourishing companies. In addition to our own service offer, we also help our clients make the best possible use of other initiatives
that support the set-up and successful development of innovative firms.

This guide takes you through the main stepsof the development of an innovative business.
It provides an introduction to key issues to keep
in mind and highlights – without the ambition of
being complete – various support structures andmeasures available in Luxembourg for innovative
entrepreneurs. It also illustrates how Luxinnovation
can help you during each phase. Whether you arealready in Luxembourg, or abroad but interested
in setting up an enterprise here, we are there tohelp you turn your innovative ideas into reality.

Jean-Paul Schuler
Managing Director
Luxinnovation

03

Start-up

TABLEOFCONTENTS

WHY LUXEMBOURG?

06

THE START-UP PROCESS

08

PRE- INCORPORATION PHASE
Define your innovative idea
Set up a business plan

10
11
13

INCORPORATION PHASE
Benefit from incubation initiatives
Incorporate your business

16
17
20

GROWTH PHASE
Find funding
Innovate continuously

24
25
34

FROM A TO ZManage your intellectual property
Conduct research
Transfer technology
Interact with your sector
Network

36
37
40
42
44
46

05

Start-up

WHY LUXEMBOURG
06

Start-up

WHY SHOULD YOU
START YOUR COMPANYIN LUXEMBOURG?
•
•
•
•
•
•

Highly skilled multilingual and multicultural
workforce (45% foreigners). Official languages:
Luxembourgish, German and French. English
is also widely spoken
European Union capital with top GDP
performance
Stable business environment and political system as well as easy access to administrations
and government
Good ICT infrastructure (mostly Tier IV
datacentres), logistics hub (5th largest freight
airport in Europe)
Favourable taxation environment
Interesting location for European and global
headquarters — some examples include
Goodyear, ArcelorMittal, Delphi, SES, Amazon
and RTL Group.

It was Luxembourg’s strong
network and connections,along with the proximity to andsimplicity of communications withlocal authorities, organisations
and decision-makers, that
helped to make the Digicash
launch such a success.
Jonathan Prince
Chief Business Development Officer of
Digicash (mobile payment provider)

FOR MORE
INFORMATION ON
THE LUXEMBOURG
BUSINESSENVIRONMENT:
www.luxembourgforbusiness.lu
www.luxembourgforfinance.lu

07

Start-up

We found Luxembourg to be a verybusiness-minded environment.
The government is accessible andaccommodating. It supports thediversification from the financial sector
and considers ICT as an interesting
sector. Luxembourg has all theadvantages of an EU capital, but isalso perceived as being independent,
neutral and trustworthy. For ourbusiness, this is a significant benefit.
Kurt Kammerer
CEO Regify (trusted e-communications)

SUPPORT PROVIDED BY
LUXINNOVATION

08

Start-up

All companies start with an idea: how to offer
something new, better, faster or cheaper topotential clients. The journey from business idea
to thriving company starts with the preparation, or
pre-incorporation, phase, where the idea is finetuned and the business plan set up. The company
is officially established during the incorporation
phase and matures during the growth phase.

Luxinnovation, the National Agency

Some issues of key importance need to betaken into account during the whole journey: theprotection of intellectual property, technology
transfer or interaction with other firms in the same
sector, for example. All of these issues will be
addressed in detail on the following pages.

can provide you with a range offor Innovation and Research,focuses on stimulating thecompetitiveness of the country’s
economy through research,innovation, creativity and design.
A dedicated team of experts

integrated and tailor-made services.

GROWTH
Find funding
Innovate continuously

INCOR
PORATION
PRE-INCORPORATION
Define your innovative idea
Set up a business plan
• Assistance in turning
innovative ideas into
viable business models

Benefit from incubation
initiatives
Incorporate your business• Support during thecompany set-up process• Support with preparing
applications for publicfunding schemes andguidance to accessprivate funding• Help to access
European funding• Support with innovation
management, designand creativity• Access to businessincubators• Advice about tools
and initiatives
supporting start-ups

09

Start-up• Support withbusiness planning• Advice on launchingbusiness activities
in Luxembourg forforeign companies

FROM A TO ZManage yourintellectual property
Conduct researchTechnology transfer
Interact withyour sector
Network• Help to protect intellectual property andoptimise the use of research results• Assistance with acquiring and transferring technologies• Partner search services (research, industry and technology partners)• Support with establishing collaborations with othercompanies and research organisations• Regular Start-up Networking EventsPRE-INCORPORATIONDEFINE YOURINNOVATIVE
IDEA
11

Guide

A new and original idea is the starting point of
every innovative company. However, it is essential
to analyse the idea and clearly define the basesof the future company: what products/services
will be offered, what is new or different compared
to what is already available on the market, how
income will be generated, etc. This analysis will
help you to get a better understanding of how to
structure your future company.

LUXINNOVATION CANSUPPORT YOU WITH:

11

Start-up•Defining, challenging andevaluating your business idea•

Analysing the potential ofyour innovative idea•

Structuring and evaluating
your business model•

Giving you access to specific
events that will help you
to develop your idea

BUSINESS MODELS
CREATIVITY TECHNIQUES
Some entrepreneurs have numerous businessideas that they need to choose between –others need to work further to challenge andstructure their ideas. Creativity techniques suchas brainstorming or mind mapping can help you
to define and structure ideas and choose thebest ones. For more information on different
techniques, see

www.innovation.public.lu

12Start-up

START-UP WEEKENDLUXEMBOURG
No talk, all action. The Start-Up Weekend
starts on a Friday evening where anyone iswelcome to pitch their start-up idea to theother participants. Teams formed aroundthe top ideas selected by the participants
then have 54 hours to create a convincing
business case. On the Saturday, selectedcoaches join and challenge the teams. The
weekend culminates with the final pitches
being made to a selected jury that will award
the three best projects.

www.up.co/communities/
luxembourg/luxembourg

A business model is a plan defined by a company
in order to estimate its expenses and define how itwill generate revenue.
Luxinnovation often works with the Business
Model Canvas to help its clients define theirbusiness models. This strategic management
and entrepreneurship tool initially developedby Alexander Osterwalder allows you to quickly
and easily explore the viability of your businessideas by asking yourself questions such as: Howwill I interact with my customers? What will my
distribution channels be? What resources do I
need? From where will I get my income?
This exercise should be done a number of times to
identify which of your potential business models
would be the best for your company.
At a later stage you can also use the Business
Model Canvas to improve your existing businessmodel and continue to innovate.

www.businessmodelgeneration.com

APPS FOUNDRY CONTEST
This is a non-profit event co-organised by
Neopixl and the Technoport. Teams of fourdevelopers and designers compete for 36
hours to create mobile applications arounda theme they discover at the start of theevent. Teams receive support and have theopportunity to see world-class designers
and developers at work, exchange experiences and innovate.

www.apps-foundry-contest.org

SET UP A
BUSINESS
PLAN
13

Guide

The business plan is a detailed presentation of yourfuture company. It is also a communication tool inyour contacts with potential partners — investors,
business partners, banks and organisations incharge of public funding schemes, for instance. It
should therefore be easy to understand and help
you convince others about your project.
The business plan will help you validate thefeasibility of your project, evaluate the market
potential and verify that there is a real demand forwhat you offer. The business plan should highlightthe strategy of your company and how you will
implement it.
The business plan is not a static document; itshould constantly evolve. It is like a dashboardthat allows you to steer your company in the right
direction. Keeping the business plan up to daterequires having a clear, precise vision of yourstrategy.

LUXINNOVATION CANSUPPORT YOU WITH:•

Setting up and optimising
your business plan•

Benefiting from the 1,2,3 Go
business plan contest

13

Start-up

BUSINESS PLAN
Free-of-charge assistance tool for
setting up a business plan.

www.businessplan.lu

14

Start-up

At the earliest stage of a venture,
it is rather rare to have in-house
all the expertise needed fordeveloping and implementing theconcept. The access to a broad
network of experts that 1,2,3 Go
provides is therefore invaluable.
Having an opportunity to explore
some aspects of the project witha coach allowed us to progress
much quicker while adding
perspectives and opportunities
that might otherwise nothave been discovered.
Irina Aleksandrova
CEO Sportunity (sport talent development)

1,2,3 GO
1,2,3 Go is based on an interregional network of more than 400 coaches who areentrepreneurs and experienced experts (industry, energy, biotech, cleantech, advisory,accounting).
After having been accepted (based on innovation criteria) in the programme, participants have access to personal coaching fordeveloping a business plan and networking
opportunities at Greater Region events. The
finalised business plans are evaluated by ajury and the best business plans are rewarded.
Luxinnovation is the national contact point
for 1,2,3 Go in Luxembourg.

www.123go-networking.org
Please note that the 1,2,3 Go contest also has
an edition for social projects.

www.123gosocial.lu

1

2 3 4 5EXECUTIVE
SUMMARY

IDEA, PRODUCT,SERVICE

MARKETCOMPETITIONTEAM

Make the readers
curious to read theentire businessplan by giving them
key information.

Explain what yourcompany offers(product or service,innovative aspects)

Present the market
in which you wish tooperate (customer
needs, segments
targeted, etc)

Identify direct andindirect competitors

Present the capacitiesof the project founders(members of the teamand their skills)

15

BUSINESS PLAN STRUCTURE

Start-up

6 7 8 9 10
MARKETING
PLAN

BUSINESSMODEL ANDORGANISATIONOPERATIONAL
PLAN

RISKS

FINANCIAL PLAN

Present your marketingstrategy (focus on the
4 Ps: product, price,place, promotion)

Present the businessmodel (activities,
subcontracts, internalorganisation)

Present thedevelopment
perspectives of yourcompany (growth rate,
resources needed)

Present the risksof your project(technical, strategic
and commercial risks,
minimisation of risks)

Define the financial
feasibility and needs(balance sheet, income
statement and cash
flow forecast)INCORPORATIONBENEFIT FROM
INCUBATIONINITIATIVES
Suitable premises (co-working space, office space,industrial halls, laboratories, etc.) can represent
important costs for new companies that have notyet started to generate income. Several initiatives
in Luxembourg offer specialised premises – socalled business incubators – with the objectiveof supporting entrepreneurs with new ideas andstart-ups. They offer a favourable environment
with personalised support, access to important
networks and interesting events, visibility of hosted
companies, training sessions for entrepreneurson various subjects and advantageous renting
conditions to help companies fully benefit fromtheir development potential.

INCUBATOR ADMISSIONCRITERIA••

Projects should be innovative and preferablyoriented towards the development of technologies
Projects must be based on solid business plans

LUXINNOVATION CANSUPPORT YOU WITH:•

Help to identify the most suitableincubation, coworking or otherfacilities for your company•

Contacts with all relevant actors•

Feedback on how to prepare asolid incubation application

17

Start-up

TECHNOPORTTechnoport is the first technology oriented
business incubator for start-ups in Luxembourg.
It manages almost 16,000 sqm of facilities
on two locations:18

Start-up

Spending 3 months at
Plug and Play was a great
experience. The international
programme helps start-ups
get integrated in the dynamic
Silicon Valley environment andoffers a powerful toolbox for
accelerating their development.
But most of all, Plug and Play
offers an amazing amount ofcontacts: venture capitalists
and international companies
are constantly coming todiscover interesting startups, and you have excellent
opportunities to work with amix of great entrepreneurs
from different countries. The
skilled and dedicated Plugand Play team also provides
great contacts in line with theobjectives of your start-up.
Nicolas Vilmart
Strategic Initiative Manager Mobey(mobile payment solution FLASHiZ)••

Ecostart (Foetz) which consists of fivebuildings with offices and industrial surfaces
Technoport (Belval ‘City of Sciences’)
offers office space, as well as accessto the Fablab Luxembourg (digital
fabrication laboratory with 3D printers,a laser cutter and milling machines) andthe co-working space

www.technoport.lu

PLUG AND PLAY TECH CENTER
The Plug and Play Tech Center is a global
accelerator located in California that specialises in growing tech start-ups. Its network includes over 300 tech start-ups, 180
investors and a community of leading universities and corporate partners.
In 2011, the Luxembourg Ministry of the
Economy set up a partnership with Plug andPlay to allow four Luxembourg ICT start-ups
per year to spend three months in Silicon
Valley in order to get access the US market.

www.plugandplaytechcenter.com

OTHER INCUBATORS AND
INITIATIVES
A number of other structures and initiatives
are available for start-ups in their incubation
phase:

1535°CWorkspace for individuals and companies
active in creative industries.

www.1535.lu

AMAZON AWS ACTIVATE
Access to Amazon services to develop yourstart-up project.

http://aws.amazon.com

BUSINESS MENTORING
Mentoring programme for young entrepreneurs.

www.businessmentoring.lu

EUROPE4STARTUPS
12-month programme providing various
services for start-ups.

LUX FUTURE LAB
Business incubator and training platform of
BGL BNP Paribas.

www.luxfuturelab.lu

MICROSOFT BIZSPARK PROGRAMME
Software, support and visibility dedicated tostart-ups.

www.microsoft.com/bizspark

NEOBUILD
Platform and incubator for companies in theconstruction and eco-technology sector.

www.neobuild.lu

PWC ACCELERATOR
Accelerator helping innovative high-growthcompanies go global faster and smarter.

www.pwcaccelerator.com

SITE INDUSTRIEL SA
Industrial halls with offices.

http://sisa.lu

www.europe4startups.com

THE IMPACTORY

HOUSE OF BIOHEALTH

Co-working space promoting innovationand social entrepreneurship.

Incubator providing offices and laboratory
space for biotech, ICT and cleantech
companies.

www.houseofbiohealth.lu

KPMG K-START
Package of services aimed at helping
entrepreneurs.

www.kpmg.com/lu/en/issuesandinsights/
articlespublications/pages/k-start.aspx

http://theimpactory.com

WISHBOX
Creative co-working space.

www.wishbox.lu
Please note that this is not an exhaustive list.
Luxinnovation can provide you with further
information about all these initiatives.

19

Start-up

INCORPORATEYOUR BUSINESS
20

Start-up

Authorisations and legal issues should be dealt
with as early as possible in the process of creating
a company. They are crucial for the launch ofyour activity and the demand for financial aids.
In order to incorporate your company, you willneed to choose a legal structure for your firm anddefine its articles of association (statutes), block
your share capital, register with the trade andcompanies register, define your trading name,obtain a business permit and, in some cases, also
an operating permit. In addition, you should check
what tax regulations apply to you.

LUXINNOVATION CANSUPPORT YOU WITH:•

Orientation on and connections
with all relevant institutional
partners for official registration•

Feedback on choosing theright legal structure

ARTICLES OF
ASSOCIATION
The articles of association are the constitutional
documents and the company’s fundamental
charter that set out its operating rules. Forcommercial companies, the articles of association
make the company a legal entity (legal person)
which means that it can act as such and makecommitments to third parties.

TRADE AND COMPANIESREGISTER
Newly formed companies in Luxembourg mustregister with the Trade and Companies Register(Registre de Commerce et des Sociétés) bylodging their constitutional documents (articles ofassociation) for publication purposes. The lodging
and publication of the constitutional documents in
the Official Journal C (Mémorial C) is essential forthe existence of the company to be enforceable
on third parties.

www.guichet.public.lu

TRADING NAME

BUSINESS PERMIT

Before starting a business or setting up acompany, entrepreneurs can check the availabilityof the trading name they plan to use. An availability
request can be submitted online to the Trade andCompanies Register Luxembourg (Registre deCommerce et des Sociétés). When the request
has been processed, the requestor has 20 days
to download the certificate of availability or
unavailability of the trading name.

The business permit (autorisation d’établissementou autorisation de commerce) grants access to
a profession. It is a pre-condition to launch any
business activity regardless of the sector: trade,crafts and industry as well as certain liberal
professions.

www.rcsl.lu

SHARE CAPITAL
The minimum share capital required forestablishing the company must be deposited ina bank account before the articles of association
are signed. The amount deposited is blocked until
the company is formed.

The business permit is granted to businesses(either to professionals operating under their own
name or companies) within a week provided theapplication file is complete. It is individual andattached to the person in charge. In case of any
changes, a new business permit will be necessary.
The person responsible for the operation or
management of a business must satisfy the required
legal conditions for qualifications and professional
integrity for the activity concerned. The businessmust have a fixed physical presence in Luxembourg(no so-called 'letterbox companies').

21

Start-up

INITIAL DECLARATIONS
Employer registration: in order to recruit staff,
a business must submit an operating declaration
to the Joint Social Security Centre (CCSS). This
operating declaration enables the CCSS to
assign a registration number to the business anddetermine the risk class for its activities.

www.ccss.lu
Income tax: When a business starts its activity, it
is automatically registered with the Luxembourg
Inland Revenue (Administration des contributions
directes) in order to comply with its tax obligations. In principle, the business receives further
information by mail from the competent tax office.

22

Start-up

www.impotsdirects.public.lu
VAT: To register for value added tax (VAT), businesses must submit an initial declaration to theLand Registration and Estates Department (Administration de l’enregistrement et des domains).

www.aed.public.lu

OPERATING PERMITFOR CLASSIFIEDESTABLISHMENTS
Also named 'commodo/incommodo' authorisations, operating permits for classified establishments define the development and operating
conditions deemed necessary to protect the environment and ensure the safety of workers, thepublic and the neighbourhood in general. It ismainly required for production companies.
Each type of establishment or activity is classified
in a class that determines the authorisation
procedure to be followed. Depending on theclass, applications must be submitted either
to the Environment Agency (Administration del’environnement), the Inspectorate of Labour andMines (Inspection du Travail et des Mines) or
the mayor of the commune where the businessintends to set up operations.

GUICHET.LU

ESPACE ENTREPRISESThe ’Guichet’ is a governmental businessportal that provides access to informationand services provided by public institutions.

The Espace Entreprises of the Chamberof Commerce is the point of contact foranyone initiating or taking over a business
and wishing to develop their commercial,industrial or liberal professions activities in
the Grand Duchy of Luxembourg.

www.guichet.public.lu

www.espace-entreprises.lu

LEGAL STRUCTURE OF A COMPANY
The two most commonly used legal forms in Luxembourg are:
SARL

SA

Minimum social capital€ 12,500€ 31,000

Notary-drawn deed
for incorporation

YES

YES

Limited to own contributions

YES

YES

Unconditional transfer of shares

NO

YES

Société à responsabilité limitée(Limited liability company)

Société anonyme(Public limited company)

23

Start-up

In order to choose the most suitable legal form
for your company, you should first ask yourself a
few questions: What is the nature of my planned
business activity? What amount of capital am I
willing to invest? Do I want partners in my businessor not? What type of commitment do I require frommy shareholders? What type of links will I havewith my shareholders (trust, family or financial)?
What are the strategic objectives of my business?

CSSF
Companies in the financial sector are subject
to strict regulations. Entrepreneurs in this
sector should contact the Commission de
Surveillance du Secteur financier (CSSF).

www.cssf.lu

CONTACT ENTREPRISESGUICHET UNIQUE PME

The Contact Entreprises of the Chambre
des Metiers provides support for businesscreation in the sector of crafts and trade.

The ‘Guichet Unique PME’ offers free-ofcharge assistance for SMEs based in thenorth of Luxembourg and for people setting
up companies in this region.

www.cdm.lu

www.guichetuniquepme.lu

GROWTHFIND
FUNDINGAll start-ups need funding to launch their activities
and undertake necessary investments before
they start having revenues. Private financing –from the company founders themselves or otherprivate investors – is the most important sourceof funding. In addition, a range of public aid
measures exist to complement the success rateof innovative enterprises with high potential.

PRIVATE FUNDING
Being an entrepreneur means taking risks: it isoften the entrepreneur’s personal resources that
constitute the first source of private equity. Other
private funding possibilities could come fromfriends and family, crowdfunding (i.e. collecting
contributions from many investors – the crowd– via an internet platform), business angels or
venture capitalists.

Business Angels
In general, business angels have solid experiencein a certain type of business. In addition to injecting
capital into companies, they also contribute with
their knowledge and experience. They generally
invest in start- ups at an earlier development stage
than venture capital funds.

Venture CapitalCompanies specialising in high-risk/high-returninvestments may offer very significant financing.
Venture capital funds perform their business project
selection based on multiple rigorous criteria, andare often geared towards innovative projects thatcarry hopes of very substantial returns.

LUXINNOVATION CANSUPPORT YOU WITH:•

Access to private investors that are
the most relevant for your projects•

Advice on how to prepare
presentations for private investors

25

Start-up

START-UP FINANCING LIFE CYCLE
Revenue

Financing Rounds

Seed Capital

Venture CapitalBusiness Angels
Founders, Family, Friends

26

Start-up

Break-even

Time

VALLEY OF DEATH

Seed

Early

Late

The start-up financing cycle includes several phases and different types of investors. The first development
stage is often financially challenging for innovative start-ups, which in many cases need a rather longprocess of developing new products and concepts and can require considerable investment in researchand development activities, prototyping, etc.

The business plan was quickly
developed. We knew where we
wanted to go. But the financing
question was harder to resolve.
Here we were able to count on
the support of Luxinnovation.
The required funds wereraised thanks to the
support of the state and thecontribution of a Luxembourg
venture capital company.
Olivier Raulot
CEO iNUI Studio (natural user interfaces)

SEED4START
Seed4Start is a forum for entrepreneurs andbusiness angels in the Greater Region. This
interregional investment capital platform offers personalised assistance and coachingto entrepreneurs in order to prepare for theimportant Seed4Start pitching day.

www.seed4start.org

LUXEMBOURG BUSINESS ANGELNETWORK
Luxembourg Business Angel Network(LBAN) operates as a platform for introducing
and matching private investors and initiatorsof entrepreneurial projects during the seedphase. It is run by seasoned entrepreneurs
and business angels who actively contributeto the development of the network. LBAN
is also a founding member of the Greater
Region Seed4Start investment platform
and a board member of the European Trade
Association for Business Angels (EBAN).

www.lban.lu

Several other private equity opportunities exist in
Luxembourg. This list is thus not exhaustive.

27

Start-up

PUBLIC FINANCIAL AIDS
28

Start-up

Public financial aids can potentially complement
the private funding of innovative start-ups.
However, the success of a new company should
never depend on this type of financing.
Public aids are granted on an exceptional basis
in order to not distort competition within the EU.
Different aids are not cumulative for the same
expenses. State aid is provided as co-financing of
eligible costs, and entrepreneurs must be able todemonstrate that they are able to cover remaining
costs and can bear the risk associated with the
deployment of co-funded activities. Entrepreneurs
must also demonstrate how the aid will generate apositive economic return for Luxembourg.

LUXINNOVATION CANSUPPORT YOU WITH:•

Identifying which financial aid ismost appropriate for your company•

Help to prepare a complete
application for a national funding
scheme ready for submission•

Introduction to relevant private
actors offering financial
support to start-ups•

Feedback on preparing proposals
for European funding programmes

I WANT TO CONDUCTRESEARCH AND
INNOVATE!
FINANCIAL AIDS FORRESEARCH, DEVELOPMENT
AND INNOVATION(LUXINNOVATION)
Subsidies for R&D and innovation projects are
granted by the Ministry of the Economy to companies with substantial activities in Luxembourg.
They cover only a part of a project, as own funds
have to co-finance the remaining expenses.

•••

R&D and innovation schemes can co-financethe feasibility as well as the research anddevelopment of innovative products. Expenses
will be reimbursed based on real costs.
A dedicated scheme to young innovative
enterprises can co-finance the cash-flow
need of a start-up during its growth phase bymatching equity investments.
Some other aids co-finance technical industrial
property protection, external advisory services
related to innovation or access to temporary
secondment of highly qualified staff.

For further information, please contact Luxinnovation.

www.innovation.public.lu

AFR GRANT (FNR — NATIONALRESEARCH FUND)
The FNR’s AFR Grant Scheme (Aides à la Formation-Recherche) supports PhD and postdoctoral research training projects in Luxembourg andabroad. In addition, the AFR scheme promotes
public/private partnerships by providing an additional financial incentive for research projects
carried out in collaboration with the private sector.

www.fnr.lu

29

Start-up

I WANT TO INVEST!
PUBLIC AID FOR INVESTMENT(MINISTRY OF THE ECONOMY)

LOANS AND PARTICIPATINGINTEREST (SNCI)This aid from the Ministry of the Economy cancover up to 20% of the acquisition costs oftangible and intangible assets.

The SNCI (Société nationale de Crédit et d’Investissement) is specialised in medium- and longterm financing of Luxembourg-based companies.
It grants various types of loans which depend on
the legal form of the businesses and the projects
to be financed. Examples are start-up loans (firstbusiness venture), equipment loans (tangible andintangible assets) and equity loans (creation, extension, conversion, reorientation and rationalisation of companies).

www.guichet.lu

30

Start-up

AID FOR THE PROMOTION OF
CLEAN TECHNOLOGIES ANDSUSTAINABLE DEVELOPMENTIN BUSINESSES(LUXINNOVATION)
This public aid covers investments in the field ofclean technologies and investments that enable
a more rational use of natural resources. These
investments shall for example allow companies
to exceed European Community standards,
increase the level of environmental protection in
the absence of such standards and have a moreenvironmentally friendly and energy efficient
production processes.

www.innovation.public.lu

A newly introduced type of loans aims to cofinance company development following the introduction of an innovative product/service, andanother to cofinance research projects and innovative business plans of SMEs. A third new instrument strives to contribute to the development ofcompanies by strengthening the collaboration andthe risk sharing with banks.
The SNCI also manages the CD-PME whose objective is to take participating interests and subscribe to convertible bonds in SMEs.

www.snci.lu

Luxinnovation’s input was essential to set up our company andget started in Luxembourg. Shortly after the launch, we wereable to market new tools and solutions enabling rapid growthover the following years. This growth was also sustained by apublic aid scheme for which Luxinnovation gave us guidance
to prepare a solid and successful application. Today we are an
established player in the roaming industry, with a skilled team of 25
employees and clients around the world. In addition, we are further
expanding our partnerships and Luxinnovation has supported us
by initiating contacts with other IT companies in Luxembourg.
Michael Grasmück
Managing Director Roamsys (roaming management system)

31

Start-up

I WANT TOEMPLOY PEOPLE!
EMPLOYMENT AIDS (ADEM)
Employers who hire young job-seekers, unemployed people or disabled workers may, undercertain conditions, recover social security contributions paid, receive tax relief, or benefit frompartial reimbursement of salaries paid. Applications must be submitted to the National Employment Agency (Adem). It is also a legal obligation to
declare all job vacancies to the Adem.

32

Start-up

www.adem.public.lu

I WANT TO GO
INTERNATIONAL!
AID FOR PROMOTION,
EXHIBITION AND EXPORTTRAINING EXPENSES (ODL)The Office du Ducroire (ODL) supports Luxembourg exports through a partial participation inpromotion, exhibition and export training expenses. Requests must be submitted before any expenses have occurred.

http://odl.lu

EUROPEAN RESEARCH AND
INNOVATION FINANCING(LUXINNOVATION)
Innovative start-ups in Luxembourg can benefit
from European research, development andinnovation (RDI) programmes, in particular Horizon
2020, the framework programme for researchand innovation for 2014-2020. Horizon 2020 isdesigned to strengthen Europe’s competitivenessthrough a wide variety of funding instruments,
research fields, and other targeted measures.
SME participation is encouraged especially via
the so-called SME instrument, a novel approachto address the financing needs of internationallyoriented SMEs implementing innovative ideas withhigh potential and high risk.
Luxembourg-based companies that prepare
project proposals for Horizon 2020 or several other
European programmes can apply for support
from the national measure Fit4Horizon2020. Thisnational subsidy, which is granted by the Ministryof the Economy and managed by Luxinnovation,
supports the costs incurred by the proposal
preparation and drafting.
As the Luxembourg National Contact Point
for Horizon 2020 and related EU research andinnovation funding programmes, Luxinnovation
supports funding applicants by providing advice
throughout the complete project lifecycle.

www.horizon2020.lu

FUNDING FOR THE
SPACE SECTOR (ESA)The European Space Agency (ESA) aims atstrengthening European capabilities in thespace domain. ESA’s projects are designed tofind out more about the earth, its immediate
space environment, the solar system and theuniverse. They also aim to develop satellite-based
technologies and services, promote European
industries and strengthen their competitiveness inthe space field.
Luxinnovation is the National Contact Point
for ESA. The Agency provides companies andresearch centres with information on how ESA
operates and offers support to entrepreneurs andresearchers willing to collaborate with ESA.

www.innovation.public.lu

Despite a first successful roundtable with a private investor,
we lacked the final push tocomplete our project. With thehelp of Luxinnovation’s advisoryteam, we successfully applied
for funding from the Ministryof the Economy under theYoung Innovative Enterprise(YIE) scheme. With the valuable
support from Luxinnovation, wewere able to refine our businessplan and prepare a high-quality
application for YIE funding. It
was this expertise that tipped
the scales in our favour.
François Scalais
CEO Neo Medical Systems (surgical 3D
screen that can be used without glasses)

33

Start-up		INNOVATECONTINUOUSLY
34

Start-up

Following the steps described in this guide will
help you start your company and begin thejourney towards growth. Your business venture
will hopefully evolve into a well-establishedcompany enjoying predictable and steady sourcesof income.
As companies mature, however, they often lose
some of their power to innovate. One reason for thisis that managers tend to concentrate on defending
and increasing the market share of existingproducts and services in order to secure what has
become their ’bread-and-butter’ business. To stayon the competitive edge despite ’me-too’ offersfrom competitors or ending product / service lifecycles, it is crucial to continue to innovate and go
beyond existing business.

LUXINNOVATION CANSUPPORT YOU WITH:•

Diagnostics to boost yourinnovative capacities•

Tailor-made training programmes•

Help to improve your overallinnovation performance•

Advice on design and creativity•

Contact to all relevant
partners and initiatives

LABEL ‘MADE IN LUXEMBOURG’MANAGING INNOVATIONIN AN ESTABLISHEDCOMPANY
Luxinnovation offers a comprehensive service
portfolio to support innovation in establishedcompanies. In addition to advice on financial
incentives for research and innovation projects,
the Agency offers support with launching andmanaging innovation activities within companies.
It can help you make sure that innovation will
not happen by coincidence but will be the resultof a well-managed process based on a soundproduct analysis and strategic considerations.
Luxinnovation also offers a specific programme
for small and medium-sized companies with theaim to improve the efficiency of their current core
activities in order to boost competitiveness as wellas to free resources for activities that can result ininnovation and growth.

CREATIVE YOUNGENTREPRENEUR AWARD
This contest for the most creative young
entrepreneur of the year is organised by the
Junior Chamber International (JCI) Luxembourg. Every year, individuals between 18
and 40 who work within or own a company established in Luxembourg and use theircreativity to boost an existing business,solve a problem, modify a process, launch a
new field of activity or change business operations in order to create added value areinvited to participate.

cyel.jci.lu

This label, created in 1984 on the initiative of
the Minister of Foreign Affairs, the Chamberof Commerce and the Chambre desMetiers, is used to identify the Luxembourg
origin of the products and services. It allows
businesses on the one hand to inform
Luxembourg consumers about native
products and on the other hand to makequality national products known abroad.

www.made-in-luxembourg.lu

TRADE MISSIONS & TRADE FAIRSThe International Affairs department of the
Chamber of Commerce collaborates closelywith the government authorities, in particularwith the Ministry of the Economy, the Ministryof Finance and the Ministry of Foreign Affairs.
The Luxembourg Trade and Diplomatic
Network, the Belgian Trade Representatives
and the international network of partnersof the Chamber of Commerce, actively
support the internationalisation process of
Luxembourg companies. Diversified andhigh quality services encompassing Statevisits, official missions and trade missions,
national pavilions at international trade
fairs, group visits to international trade
fairs, international partnership events andbusiness opportunity days are offered tocompanies, according to their specificneeds. The Chamber of Commerce is also afounding member of the promotion agencies
Luxembourg for Business and Luxembourg
for Finance.

www.cc.lu
www.luxembourgforbusiness.lu
www.luxembourgforfinance.com

35

Start-up

FROM

MANAGE YOURINTELLECTUAL
PROPERTY
Intellectual property (IP) is an important issue
for many innovative start-ups: they often needto protect their concepts and technologies toprevent them from being copied by competitors,
and also have to make sure that they do not violate
the IP rights of other companies. Protecting andmanaging your company’s IP well is important toremain competitive and increase the value of yourbusiness.
The Luxembourg Government supports theprotection of IP in companies in order to help
them to increase their competitiveness.

LUXINNOVATION CANSUPPORT YOU WITH:•

Information on how to best protect
your idea or research results•

Advice on how to develop an
IP management and protection
strategy for your company•

Individual support with technology
transfer and public aid applications
for funding your IP protection

37

Start-up

PROTECTINGINTELLECTUAL PROPERTY PROVING THE EXISTENCE• The results of research, development and
OF AN IDEA•

38

Start-up•innovation (RDI) are valuable assets: if you do
not protect your RDI results, your competitors
are free to copy themProtecting your RDI results can ensure acertain monopoly on a given territory, i.e. you
are the only one allowed to make money outof the IP concerned in the country/countries
where it has been protected
By protecting your company’s IP, you canorganise the relationships with your partners(e.g. within a licensing framework agreement)

Ideas, methods, and concepts cannot beprotected. If you have a business idea, be careful
about sharing information! Ask any potential
partner to sign a confidentiality agreement.

INTELLECTUAL PROPERTYOWNERSHIP
Luxembourg law foresees that the employer isthe owner of IP rights generated by an employee,
unless otherwise agreed. However, in case of
copyright, it is always the author who is the ownerof the IP rights.

The i-DEPOT of the Benelux Office for Intellectual
Property allows you to prove that your creation
already existed on a certain date. This may bequite useful if somebody else claims that thecreation is his or hers, since your i-DEPOT willallow you to disprove that claim. However, thei-DEPOT offers neither intellectual property rights
nor legal protection. It is a simple and inexpensive
way to prove the date of creation of your idea valid
for a period of 5 years (renewable).

All IP rights are limited:••

In time: 20 years for patents, unlimited for
trademarks, 25 years for designs, 70 years
after the death of the author for copyrights
In space: either national, European orworldwideOnly new intellectual property can be protected, which means that it should not be part of the current
state of the art.

INTELLECTUAL PROPERTY

Industrial property
Patents

Trademarks

Literary and artistic property
Designs

Copyrights

Similar rights

39

Start-up

USEFUL CONTACTS:
Luxembourg Intellectual Property Officewww.eco.public.lu
Benelux Office for Intellectual Property

www.boip.int
European Patent Officewww.epo.org
Office for Harmonisation in the InternalMarketwww.oami.europa.eu
World Intellectual Property Organisationwww.wipo.int

INTELLECTUAL PROPERTYINSTITUTE
From 2015 onwards, the institute for intellectual property (Institut de la Propriété Intellectuelle Luxembourg, IPIL) federates Luxembourg competences regarding intellectual
property and make them available for all economic and public actors.

CONDUCT RESEARCH
Many innovative start-ups base their products
and services on research and development (R&D)
results and conduct R&D activities to extend or
improve their offer further.

40

Start-up

Start-ups do not always, however, have allnecessary skills in-house to undertake R&D
activities in all fields of their interest. When that isthe case, R&D collaborations with public researchorganisations can be a useful option that enables
the participating entities to benefit from eachother’s expertise, know-how and equipment.
The Grand Duchy’s public research organisations
have research skills that can be of much interestfor innovative companies. Luxinnovation can
provide guidance to research organisations andteams with relevant activities for your company.

www.innovation.public.lu

LUXINNOVATION CANSUPPORT YOU WITH:•

Help to identify publicresearch organisations andresearch fields that might beinteresting for collaboration•

Connections to all relevant
research partners through eventsand personal introductions•

Access to collaborative R&D
projects within the framework of
the Luxembourg Cluster Initiative

BUSINESS MEETS RESEARCH
Meet entrepreneurs, researchers andexperts at the Business meets Research
Forum to discover the capabilities andinnovative solutions of public and private
research in Luxembourg and the Greater
Region.

www.business-meets-research.lu

41

EURAXESS
Euraxess — Researchers in Motion isa pan-European network driven by theEuropean Commission to facilitate themobility of researchers across Europe. It
offers assistance to researchers in four key
areas: jobs (with a jobs portal), services (e.g.
accommodation and relocation assistance),rights for researchers and networking links.

www.euraxess.lu

Start-up

TRANSFER
				TECHNOLOGY
Have you developed a technology that you do not
use yourself, but that you think could be exploitedby another company? Do you need to acquire atechnological solution for the activities of yourenterprise?

42

Start-up

Technology transfer can be useful for companies
that wish to carry out innovative projects, but do
not have all technological solutions necessary for
their implementation — nor the time and resources
needed to develop these solutions internally.

LUXINNOVATION CANSUPPORT YOU WITH:•

Access to the Enterprise
Europe Network•

Finding partners fortechnology transfer onnational or European level

SEARCH FOR PARTNERS
One possible solution is to search for partners
who could provide the technologies and knowhow needed. These could be enterprises,
research laboratories or any other entity withwhich the company could establish a partnershipagreement. Different forms of agreements exist,
such as licensing agreements, sub-contracting,joint developments or joint ventures.
The ‘Finding partners’ section of the Luxembourg
Portal for Innovation and Research presents the
skills and know-how of innovative enterprises andpublic research units located in Luxembourg.
The Portal’s Technology Market provides agateway to technology transfer and presents
technology offers and requests published bycompanies and research laboratories from all over
Europe via the Enterprise Europe Network.

www.innovation.public.lu

TECHNOLOGY BROKERAGE
Luxinnovation supports technology transfer
through its technology brokerage services,
benefiting from resources such as the Enterprise
Europe Network. Using a proven methodology,
the Agency advises Luxembourg enterprises
throughout the process, from the identificationof technological needs to the conclusion of atechnological partnership agreement.

ENTERPRISE EUROPE NETWORKEnterprise Europe Network (EEN) is a
European network that groups together
more than 600 local partners across over 40
countries.
EEN can support you during the various
steps of the transnational technology transfer process: defining needs, finding partners, negotiating partnership agreements,
etc. It can also help with an analysis and targeted distribution of your technology offers
and requests on the European level. In Luxembourg, the EEN is run by Luxinnovation,
the Luxembourg Chamber of Commerce
and the Chambre des Métiers Luxembourg.

www.een.lu

43

Start-up

INTERACT WITHIN				YOUR SECTOR
44Start-up

Most companies find it useful to interact withother actors in their sector. This can help them get
new ideas and knowledge, meet new clients andsuppliers, benefit from knowhow and networksof other entrepreneurs or sector experts and findR&D and innovation partners. Several initiatives
have been put in place to foster this interaction,
facilitate joint R&D and innovation activities
and promote Luxembourg’s key sectors at
international level.

LUXINNOVATION CANSUPPORT YOU WITH:•

Promoting competitivenessthrough synergies between
Cluster members•

Exchanging ideas andknowledge on technologicalproblems and solutions•

Developing innovative
products and services•

Access to new markets
and identification of new
business opportunities•

Easy access to information on
innovative, emerging technologies

LUXEMBOURG CLUSTERINITIATIVE
Clusters bring together companies andresearchers in priority sectors that are crucial
for the future sustainable developmentof the Luxembourg economy. They cangive young innovative enterprises accessto a community of key actors, facilitate
collaboration and provide a platform forbusiness development at national andinternational level.
Luxinnovation manages the Luxembourg
Cluster Initiative which includes the clusters
in the following fields:

•
•
•
•
•
•

automotive components
biohealthecoinnovation
ICT
materials
space

www.clusters.lu

INNOVATION CLUBThe Innovation Club was launched by the
Chambre des Métiers and Luxinnovation in2006. It is a meeting place and a forum forentrepreneurs, mainly associated with thecrafts sector. Its main purpose is to enable
company managers representing different
groups of trades to share their experienceson key factors for successful innovation andexplore new ideas. It also contributes tothe establishment of a national network ofinnovators to generate new opportunities forparticipating businesses.

www.luxinnovation.lu

LOGISTICS AND
MARITIME CLUSTERS
Clusters have also been set up in the fields
of logistics and maritime activities, two
sectors in which Luxembourg is positioning
itself at an international level. Particularemphasis is put on innovative solutions for
multimodal and sustainable transportationand high value-added supply chains.

www.clusterforlogistics.lu
www.cluster-maritime.lu

45

Start-up

NETWORK
46

Start-up

The start-up community in Luxembourg is
wide, dynamic and international. Luxinnovation
offers several services aiming to bring together
the community and provide its members with
opportunities to get the latest news of the startup scene and network and exchange experienceswith other entrepreneurs and investors.

LUXINNOVATION CANSUPPORT YOU WITH:•

Networking opportunitites•

Introductions to other membersof the start-up community•

Information about thelatest start-up news

START-UP NETWORK(ING)
EVENTS
Regular Start-up Network(ing) Events withinteresting presentations and discussions.

www.luxinnovation.lu

SILICON LUXEMBOURG
Media platform dedicated to Luxembourg
start-ups.

www.siliconluxembourg.lu

47

Start-upLUXINNOVATION START-UP TEAM

Contact us:
start@luxinnovation.lu

48

Start-up

Follow us:
Twitter@startuplu

LinkedIn

Start-up Luxembourg

DISCLAIMER
The purpose of this guide is to provide information on the process of establishing innovative start-ups in
Luxembourg and support initiatives available. It makes no claim to be exhaustive. The publisher has tried
to ensure that all information is accurate but cannot be held responsible for the use that might be madeof the information, for omissions or for any mistakes that might appear.

LUXINNOVATION GIE -17, rue Alcide de Gasperi -f L-1615 Luxembourg
Phone (+352) 43 62 63 - 1 -1 Fax (+352) 43 81 20 -1 info@luxinnovation.lu

WWW.LUXINNOVATION.LU