Why Entrepreneurs Should Look Into Company Formation in Luxembourg?

More than 340 multinationals, have already established their headquarters in Luxembourg and more and more startups, entrepreneurs and companies looking into relocating their offices are considering company formation in Luxembourg. The magnitude of the tax benefits offered by Luxembourg for corporations and even for small to medium-sized companies is not the only main advantages which should be taken into consideration, but also the following aspects:

Luxembourg cityscape

International financial expertise

At the end of 2016, there were more than 140 banks with subsidiaries in Luxembourg representing 27 countries and 150 FinTech companies that attract new funds each year and have approximately 14,000 employees. All these financial and banking institutions bring expertise to create a framework for the development of the financial sector, which is a significant advantage for those interested in company formation in Luxembourg can also benefit from excellent banking and financial services.

Diverse industries

Startups and newly-formed companies can benefit from various programs and networking opportunities. 11 industry clusters were created since 2002. In addition, more than 200 million euros were allocated to the development of the space industry. Moreover, Luxembourg’s government supported the development of the bio technology industry.

Open economy

For companies interested in testing new products and services on a diverse market, Luxembourg is an ideal option, because it provides easy access to other nearby European markets. Unlike other European countries that already have a large domestic market; Luxembourg is very open to worldwide commercial activities. In fact, Luxembourg exports 80% of all its goods and services. The convenient geographical location and high quality infrastructure are important contributing factors to the easy access on other markets.

Luxembourg’s neutrality and the prestige of the Grand Duchy’s royal family also carry great weight in relationships with countries that have more complex political environments.

Business-friendly environment for SMEs

Most entrepreneurs interested in company formation in Luxembourg are most likely to open a small company at first and eventually expand their business in the following years. Luxembourg provides an excellent environment for small to medium-sized companies, as more than 650 projects have been funded by the Ministry of Economy between 2009-2015.

Luxembourg is also recognized for the most efficient and helpful administration, being ranked at number one in Europe, according to a report published by Eurostat. According to the report, even small businesses can make their voices heard by the economic decision-makers.

Multicultural and multilingual workforce

An important step to take after the company formation in Luxembourg process takes place is to find the right employees. Luckily, employers don’t have to look too far to find highly skilled workers. More than 70% of the working population is foreign, which means that Luxembourg resident speak an average of 3 languages each. Therefore, it shouldn’t come as a surprise that Luxembourg was ranked in the top 3 countries regarding talent competitiveness.

European logistics hub

Many companies, including big players from various industries, have decided to relocate their logistic operations in Luxembourg. As a matter of fact, due to its convenient location, Luxembourg was ranked second in the logistics and performance index in 2016. The Luxembourg airport alone serves 66 destinations.

High quality of life and safety

When making decisions regarding company formation in Luxembourg, for most decision-makers it’s also important to know that the people relocated to this country will benefit from great living standards. Luxembourg City was named the safest city in the world in the Mercer Quality of Living Report in 2016. 96% of the Luxembourg City residents are satisfied with the place they live in and 86% of them are feeling safe in the city.

Regardless of which type of business ventures you have in mind, make sure to acquire the help of a specialist or a firm specialized in company formation in Luxembourg to find out more about legal requirements, taxation and other important aspects.


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