A SaaS startup structures its formation to get funded
Published on 10 October 2026 · Updated on 10 October 2026
In short
SaaS startup funding in Luxembourg depends on the order of the steps. Two non-resident founders first apply to Fit 4 Start without a company, form the SARL after selection, aim for young innovative company aid at €40,000 of turnover, then review the IP box on software revenue with a tax adviser.
Typical scenario
Journey built from current rules, with no real client data. Aid amounts are official caps, not a guaranteed result.
- Profile
- Two non-resident founders, B2B software at prototype stage
- Project
- Settle in Luxembourg and raise funds
- Chosen form
- SARL, capital of €12,000
- Funding targeted
- Fit 4 Start, then young innovative companies
The journey
- 1
Before formation
Fit 4 Start application on the project, without a company
Founders - 2
After selection
Formation of the SARL: small company, presence in Luxembourg, one full-time founder
businessregistration.lu, notary - 3
Month 1
Business licence, VAT, CCSS; software developed in-house and documented
Ministry, AED, CCSS - 4
During the programme
Fit 4 Start grant applications on MyGuichet.lu, instalment by instalment
Ministry of the Economy - 5
With €40,000 of turnover
Luxinnovation certificate and application for young innovative company aid
Luxinnovation, ministry - 6
Software revenue
IP box review with a tax adviser (nexus approach)
Tax adviser
Aid and permits involved
Choices that protect eligibility
- Age of the company: Fit 4 Start and the young innovative company aid require less than 5 years; forming too early uses up the window.
- Incentive effect: RDI aid must be applied for before the relevant work begins.
- Software ownership: the code must belong to the company and the R&D must be carried out in-house for the IP box.
Next step