Different types of business assistance in Luxembourg
The Luxembourg government seeks to provide support to businesses as part of a strategy to strengthen its economy and ensure sustainable growth. By contributing to entrepreneurship, the government can benefit from all that companies offer to an economy: companies contribute significantly to the generation of employment, to the economic growth of the country, to innovation, to the diversification of the national economy and to the consolidation of the country as an international hub, among other contributions.
In its commitment to business growth in the country, the government seeks to support established companies, stimulate the creation of new business initiatives and attract foreign investment.
The government has, for example, implemented favorable tax policies and an attractive regulatory framework. In addition, loans, grants or other types of financing may be provided for specific projects to support small businesses. In parallel there are specific support programs for companies developing in certain sectors and several incubators exist to help companies to evolve.
Below we will see in more detail the different types of assistance and the institutions present in the country that can help entrepreneurs to create or develop their businesses.
Advisory, networking and incubator services
One of the main ways to help businesses is through consulting and training services and by creating networking opportunities. Many institutions in the country offer these types of services and some of them do it through incubators that can also help companies in other ways. Below are some of the entities present in the country that offer these services.
House of Entrepreneurship
The House of Entrepreneurship is a platform in Luxembourg that centralizes support services for entrepreneurs and businesses at all stages of their development. It was launched in October 2016 under the impulse of the Chamber of Commerce and the Ministry of Economy.
This platform brings together all stakeholders involved throughout the entrepreneurial journey, from the creation of companies to their transfer. It is a national contact point dedicated to entrepreneurship that offers multiple services for entrepreneurs and brings together all interlocutors under one roof. Specifically, the House of Entrepreneurship offers:
- Personalized advice: the House of Entrepreneurship offers advice tailored to the specific needs of each entrepreneur throughout the entire entrepreneurial process. This covers aspects such as business creation, legal procedures and business management among others.
- Free workshops on various topics: the House of Entrepreneurship provides training on various topics relevant to entrepreneurs.
- Access to financing and state aid: the House of Entrepreneurship assists companies in obtaining financial resources and identifying available government subsidies.
- Networking and meetings with experts: the House of Entrepreneurship creates opportunities for entrepreneurs to connect with experts and other key players in the entrepreneurial ecosystem.
Luxinnovation
Luxinnovation is Luxembourg's national innovation agency, it is dedicated to boosting the competitiveness of companies through research and innovation. Its main functions include:
- Support for digitalization: it assists companies in adopting digital technologies to optimize processes and improve their performance.
- Fostering innovation: collaborates with companies to identify opportunities for innovation in their products, in their services and in their processes and business models.
- Promoting sustainability: through the Sustainability Innovation Hub, helps companies implement sustainable practices that increase their competitiveness and contribute to the country's sustainable economic development.
- Assistance in obtaining financing: based on the company's strategy, development plans and projects, Luxinnovation helps companies identify available financing measures and explains how to prepare comprehensive, well-structured bids with a high probability of success.
In addition, Luxinnovation assists international companies that may be interested in setting up in Luxembourg by providing information and support.
Chambre de Commerce
The Luxembourg Chamber of Commerce is an indispensable ally for any entrepreneur in Luxembourg. This institution provides detailed information on setting up a business in Luxembourg and offers consulting services on administrative procedures, best market practices and available financial resources. The Chamber also organizes events and workshops to encourage networking and collaboration between companies.
Chambre des Métiers
The Chambre des Métiers is a key support for artisans and small entrepreneurs. It offers information on the necessary authorizations and licenses according to the type of business you have in mind, as well as advice on financing, information on available government aid and other important issues for those who wish to start a business.
House of Sustainability
This institution supports companies that wish to integrate sustainability into their business projects. The House of Sustainability offers advice on financing opportunities and special assistance for projects focused on the circular economy, renewable energies and projects where sustainability is a major pillar.
House of Training
Entrepreneurship is not easy and often requires skills in one or more fields, which is where the House of Training comes in. This institution is dedicated to continuous training and has a wide range of courses in multiple areas such as decision making, team management or strategic growth.
- House of Startups (HoST): is an initiative of the Luxembourg Chamber of Commerce with the ambition to become a driving force of the startup and innovation ecosystem in the country. The HoST houses incubators, accelerators and innovation hubs and in total hosts between 150 and 200 innovative startups. Among the hubs present are the Luxembourg House of Financial Technology (LHoFT) and the Luxembourg-City Incubator (LCI).
- House of Financial Technologies (LHoFT): the House of Financial Technologies is a specialized Fintech hub offering a business incubator for startups in the technology and finance sector. They offer a wide range of services to fintech companies, as well as to established financial institutions, corporations, venture capital investors, and legal and advisory firms. In addition, the LHoFT not only acts as an incubator but also offers a wide range of courses and training programs and organizes specialized fintech training events and workshops.
- Luxembourg-City Incubator (LCI) is an initiative launched in September 2017 by the Luxembourg Chamber of Commerce, with the main sponsorship of Luxembourg City. It aims to support local and international startups in priority sectors that foster innovation. The LCI offers an inspiring and flexible workspace, as well as access to a vibrant community of entrepreneurs. In addition, it provides workshops, master classes and evaluates the progress of projects in recurring cycles of approximately 12 weeks.
Specific programs
Luxembourg offers multiple programs specifically designed to support businesses developing in certain sectors or to assist the development of companies in specific areas such as digital transformation, innovation or sustainability. Below we will detail some of the main programs available in the Grand Duchy:
- Fit 4 Start: is an acceleration program aimed at technology and data companies whose businesses are based on innovative technologies. The program offers opportunities to startups operating in the digital, healthcare and space sectors. The program offers entrepreneurs intensive mentoring, attractive non-equity funding and access to key networks to help them successfully launch their business and develop it in the European market.
- Fit 4 Digital: this program is designed to help small and medium-sized enterprises (SMEs) kick-start their digital transformation. It provides advice and support to implement digital solutions that optimize processes and improve competitiveness.
- Fit 4 Innovation: aims to assist SMEs in optimizing their operations and freeing up human and financial resources through the use of external experts. These freed-up resources can be allocated to medium- and long-term innovation projects.
- Fit 4 Sustainability: this program offers companies the possibility of carrying out an assessment of the environmental impact of their activities, followed by recommendations for reducing this impact. Support is provided in the form of a capital grant.
- ESRIC SSP (European Space Resources Innovation Center Accelerator Program): this program is managed by the European Space Resources Innovation Center (ESRIC) and focuses on supporting startups developing technologies related to the use of space resources. It offers mentoring, access to specialized facilities and funding opportunities to boost innovative projects in the space sector.
- Catapult: Inclusion Africa: is an accelerator program designed by the LHoFT Foundation (The Luxembourg House of Financial Technology) that aims to support African fintechs focused on financial inclusion. The program provides intensive training, mentoring and networking opportunities to help these companies scale their solutions and expand their impact in underserved communities.
- Founder Institute: is a global accelerator that helps early-stage entrepreneurs launch and grow their startups. Through a structured program, it offers mentoring, training and an international network of contacts to guide founders from idea conception to the creation of a sustainable company.
Financial support
Another way for the Luxembourg government to help companies in Luxembourg is through financial aid. There are a great number of them, we will mention here some of the most important ones leaving links to the government sites where it is possible to find more information. Although many of these grants include direct subsidies or tax credits, some may only include other types of assistance such as advisory and consultancy services.
Aid for RDI projects: research, development and innovation.
The amended law of May 17, 2017 on the promotion of research, development and innovation in Luxembourg establishes a legal framework for granting state aid to promote RDI activities in the country. These aids seek to incentivize competitiveness and economic growth by supporting innovative projects. Among these aids are the following:
General aid measures to SMEs
These aids are based on the law of August 9, 2018, establishing a state aid regime aimed at small and medium-sized enterprises to foster their development by recognizing their essential role in the national economy. Within these aids are the following:
Investment aid for the protection of the environmentTitle
These aids are granted under the state aid scheme aimed at promoting environmental protection which was established by the amended law of December 15, 2017. These aids are designed to incentivize companies to adopt sustainable practices and environmentally friendly technologies. These aids include the following:
Financial aid for regional investmentsTitle
Companies wishing to invest in the municipalities of Dudelange, Bettembourg, Wiltz, Winseler and Kiischpelt can benefit from regional investment aid. For more details, you can consult the dedicated page on guichet.lu.
