Why choose an Innovative Company?
There are a number of reasons to start an innovative company in Luxembourg. Firstly, the country and its law provisions 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, who work together in innovation. Thirdly, the government supports and encourages innovation through grants and loans. Additionally, private funding is also accessible. Lastly, Luxembourg has an impeccable ICT infrastructure, making it easy to connect with other parts of Europe to conduct business.
Definition
This type of company is not itself a business form, 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 lodged with Luxembourg’s Trade and Companies Register.
Legal form
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 on the type of company that an innovative company can be formed as. It is important to choose a legal form based on the nature of the business activity, the available capital to be invested, the number of shareholders, the nature of shareholder relationships, and the objectives of the business.
Company purpose
There are several sectors under the innovation umbrella. These include: automotive, CleanTech, creative industries, finance, health sciences and technologies, ICT, logistics, manufacturing, space and wood. 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 out by Luxembourg’s Financial Market Authority who will supervise it. Depending on the type of company, annual accounts may be required to be produced and audited by an independent auditor.
Taxation
The following are all the types of taxations in Luxembourg: corporate tax (corporate income tax, municipal tax, solidarity surtax), 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 for some of these taxes. Under certain circumstances, exemptions from one or more of these taxes also exist.
Double Taxation Agreements (DTA’s)
Innovative companies with subsidiaries outside Luxembourg, but with its registered office and main place of management within Luxembourg, may be able to benefit from DTA’s that Luxembourg have with other countries. This means that these companies are not required to pay taxes to different countries.
