Starting a startup in Luxembourg: which structure and which grants
Published on 10 October 2026 · Updated on 10 October 2026
In short
To start a startup in Luxembourg, you first choose the legal form according to the planned fundraising. A SARL suits a stable team; an SA makes it easier for investors to come in thanks to freely transferable shares. The SARL-S, reserved for individuals, cannot admit a fund. Fit 4 Start can fund up to €150,000 without taking equity.
SARL or SA for a startup
| SARL | SA | |
|---|---|---|
| Minimum capital | €12,000, payable within 12 months down to the minimum | €30,000, of which 25% paid up |
| Bringing in investors | Transfer to a third party subject to approval by three quarters of the capital, unless the articles say otherwise | Freely transferable shares, unless the articles provide otherwise |
| Number of partners | 1 to 100 | No ceiling |
| Our fees | €2,999 excl. VAT or €4,899 excl. VAT | €3,999 excl. VAT or €5,999 excl. VAT |
Public grants for startups
Amounts taken from official sources, checked on 10 October 2026.
- Fit 4 Start
- Up to €150,000 in 3 instalments, plus 6 months of coaching
- Innovative young companies
- Up to 70% of the need over 3 years, ceiling €1,000,000
- IP Box
- 80% exemption on net income from eligible patents and software
- RDI grants
- Research or innovation project, application before work begins
The steps of a startup formation
- 1
Choose the form according to the funding round
Corporate investors expected: SARL or SA, not a SARL-S.
Founders and Business Registration - 2
Time the grants
Fit 4 Start accepts a project not yet incorporated; RDI grants are applied for before committing the work.
Luxinnovation, Ministry of the Economy - 3
Shareholders’ agreement
Vesting, exit, governance and split of the capital, drafted by a lawyer.
Lawyer - 4
Business permit
Software development and digital services generally fall under the commercial permit.
Ministry of the Economy - 5
Incorporation
Articles, bank account, notarial deed, RCS and RBE within one month.
Lawyer, bank, notary, LBR
The SARL-S trap
The SARL-S is attractive for its capital from €1, but it accepts only individuals and each person can hold only one. If a fund or a company is to come into the capital, it will first have to be converted into a SARL.
Next step
Structure your startup
Form, grant timetable and permit aligned before any filing.
Frequently asked questions
Do I need to incorporate before applying to Fit 4 Start?
No. According to Guichet.lu, Fit 4 Start is aimed at a company under 5 years old or a project not yet incorporated, carried by a team of at least 2 people, in digital, health or space. The company is incorporated during the programme.
SARL or SA: which do investors prefer?
Many institutional investors prefer the SA, whose shares transfer freely and which has no ceiling on partners. A SARL remains suitable for a first round with business angels, provided the articles and the shareholders’ agreement organise share transfers and the investors’ exit.
Can a non-resident startup benefit from the grants?
The grants target companies established in Luxembourg, most of them with a business permit. A non-resident startup must therefore have its registered office and activity genuinely in Luxembourg before applying to these schemes, since they require a genuine local base for the company.
Can a SARL be converted into an SA later?
Yes, by decision of the partners before a notary, raising the capital to the SA minimum. It is a common operation before a significant funding round, but it has a cost and requires a notarial deed: better to plan for it in the fundraising timetable.