Opting to set up a business or to take over an existing business requires certain administrative formalities, authorisations and the choice of the company's legal structure. These formalities include among other things : the authorisation of establishment, the initial VAT declaration, the initial declaration to tax administration, the registration in the Luxembourg Business Register.
Any creative project begins with an idea: it is often a simple intuition or a desire that matures and takes shape over time. Whatever the origin or the nature, the professional experience or the particular know-how, it is important to develop and challenge your idea before launching a company. The first thing to establishing a roadmap, coupled with an initial feasibility study, in order to analyze the opportunities and challenges associated with the idea. To do this, interacting with people of experience, listening to their observations and advice, is essential.
This step must be carried out rigorously to ensure that the idea turns into a concrete project.
The realization of the idea is closely linked to the project owner, his qualities and his weaknesses, his skills, his personal situation and his expectations. Each future entrepreneur should therefore start by identifying his competences but also those that he can still improve. This approach allows him to assess his own potential objectively and find partners or even further training courses to acquire new skills.
Before embarking on an entrepreneurial adventure, every future business owner must analyse the options available to him or her. Starting or taking over an existing business? In some activities, taking over a company can enable a quicker start and better conditions : an existing structure, an existing team and a customer portfolio. All of these elements make it possible to better plan for the future, in terms of growth and turnover. Another advantage is that it saves time: namely the search for suitable premises, the recruitment and training of staff, and the implementation of a launch strategy.
To ensure an effective takeover, developing an entrepreneurial vision that is in line with one's professional skills and personal qualities and that takes into account the equity capital actually available is necessary.
A good preparation allows you to maximise the chances of a successful business takeover.
The House of Entrepreneurship of the Chamber of Commerce, in partnership with the Chamber of Trade and the Ministry of the Economy, offers a national platform that brings together all the offers of transfer and takeover of companies established in the Grand Duchy.
The Businesstransfer team of the Chamber of Commerce and the Chamber of Trades can accompany you throughout the successive stages of the process. A specific training course on "taking over a company in practice" for buyers, has also been designed in collaboration with the House of Training.
The business plan is generally the basis for any start-up or takeover project. It is part of a strategic planning process, structured in key stages. Before embarking on numerical projections, certain considerations must be made, particularly on the following themes :
- the promoter's profile: personality and skills ;
- the company's mission: products, customers and territory
- the stages of implementation: planning of the different stages or "milestones";
- the market or market segment: characteristics, positioning and competition
- the methods envisaged to attract customers: strategy and marketing
- the operational organisation: technical and human resources required
- financial forecasts: financial resources, turnover, overheads and profitability.
The business plan should bring all these elements together in an overall plan, demonstrating the feasibility of the project.
Whether you are a beginner or an experienced entrepreneur, drawing up a business plan, and in particular a financial plan, may not be your favourite exercise. And yet, putting your ideas together in a document is important when it comes to seeking financing.
This is where the House of Entrepreneurship's myBUSINESSPLAN comes in, designed in partnership with nyuko, ADEM and the University of Luxembourg. This tool is :
- free, didactic and easy to use,
- accessible to all entrepreneurs, whether beginners or experienced,
- efficient with the provision of pre-programmed financial tables,
- practical because it can be exported in a PDF file ready to be sent to your banker, public or private investor, business partner, etc.
Throughout your reflection and drafting work, practical information, explanations and references will be provided online to make you as independent as possible in your drafting.
To get you off to a good start, the House of Entrepreneurship gives you a few tips during its monthly online workshops: myBusinessplan: Key steps for writing a business plan.
Before carrying out any project to create, take over or develop a business, the entrepreneur must necessarily ask himself the question of how to finance it. Proper financing of a project is one of the key conditions for its success.
The bank remains the main contact when the entrepreneur's funds are not sufficient to carry out a business project. The Mutualité de Cautionnement can facilitate the entrepreneur's access to financing by providing a guarantee to the bank when the guarantees provided by the entrepreneur are insufficient.
The SNCI also grants creation-transmission loans to newly created or taken over SMEs. It is a public law banking institution specialising in medium and long-term financing for Luxembourg companies. It grants loans for investment, innovation and export credits.
In addition to this aid, there is a wide range of public aid available to companies and investors in the Grand Duchy.
However, this aid is varied and can vary greatly depending on the activity of the company. The House of Entrepreneurship offers advice to identify the aid from which your company could benefit.
Once the concept has been clearly defined, the question arises as to which authorisations are needed to launch the project effectively. The Luxembourg legislator provides for the principle of compulsory authorisation for all commercial, craft and industrial activities under the "Right of Establishment".
The business permit must be requested by the head of the company from the General Directorate for Small and Medium-Sized Enterprises of the Ministry of the Economy.
In order to obtain this authorisation, the applicant must fulfil various conditions:
- Fixed premises in Luxembourg
- Professional qualification corresponding to the activity : Activities in the commercial sector do not require any qualification. Other specific activities require the necessary qualifications, up to an university degree.
- Professional integrity
In addition to the required authorisations, it is essential to think about the legal form that best suits one's activity and personal situation.
This choice must be studied carefully, as the legal form will have a major impact on the operation of the newly created structure and has a number of consequences, both in terms of assets and social and tax law. It is advisable to study the various possible statutes in order to analyse the advantages and disadvantages in relation to the project and to one's personal situation.
When the business idea and project are mature, the entrepreneur can go in search of a suitable environment in which his or her startup can evolve. Many startups therefore move to incubators that offer not only office space but also programmes that help them develop the project. The House of Startups of the Chamber of Commerce houses the Luxembourg-City Incubator.
Once the entrepreneur has his authorisation, he must comply with various administrations in order to carry out his activities.
Registration in the Luxembourg Business Register (LBR)
Every entrepreneur as an independant or a company that carries out commercial, industrial or craft activities is obliged to register with the LBR via an online filing. (The liberal professions are excluded) If a commercial company (limited liability company, etc.) is set up by a notary, the notary is responsible for filing the articles of association with the LBR.
Joint Social Security Center (CCSS)
The entrepreneur/self-employed person must be affiliated with the CCSS. If the entrepreneur wishes to employ staff, he must register his employees in addition by means of a "déclaration d'exploitation". The affiliation and the contribution are adapted to the entrepreneur's income.
Duties, Estates and VAT Authority (Indirect tax authority)
In order to be able to issue invoices, the entrepreneur must apply to the Administration of Registration and Domains (AED) to obtain his VAT number. Depending on the amount of the annual tax, the entrepreneur can apply for a VAT exemption and invoice without VAT, which increases the company's profit and/or competitiveness (VAT exemption).
Direct Tax Administration (ACD)
Following registration with the CCSS, the entrepreneur is contacted by the Direct Tax Administration (ACD) to receive his tax obligations. If this is not the case, the concerned person must submit an initial declaration to the ACD.
At each of these important stages of a business project, the Chamber of Commerce can support the entrepreneur or project leader with advice and personalised assistance. The Chamber of Commerce also works closely with a number of partners who offer services in the field of business creation and development:
- House of Entrepreneurship
The House of Entrepreneurship brings together all the stakeholders involved in the value chain of business creation in Luxembourg and offers a range of services to businesses throughout their life cycle (information on the creation, development and transfer of businesses, digitalisation, financing, networking or export document management). It now welcomes entrepreneurs in Luxembourg-Kirchberg, Mondorf-les-Bains and Esch-sur-Alzette.
- House of Startups
The House of Startups is an incubator centre that contributes to the development of the startup ecosystem in Luxembourg and supports innovation and economic diversification as a laboratory for tomorrow's economy. The House of Startups hosts the Luxembourg-City Incubator, the House of Financial Technology (LHoFT), the Hub@Luxembourg and the International Climate Finance Accelerator (ICFA).
- Mutualité de Cautionnement
Housed within the House of Entrepreneurship, the Mutuallity-loan Guarantee Fund aims to compensate for the lack of guarantees in small and medium-sized businesses by granting a guarantee to entrepreneurs. It can act as guarantor with approved credit institutions when the guarantees provided by the entrepreneur prove to be insufficient. Contact us by e-mail at firstname.lastname@example.org or by telephone on +352 42 39 39 878.
- StartYourBusiness (in collaboration with ADEM)
StartYourBusiness is a training programme that complements the entrepreneurial ecosystem by providing follow-up for future entrepreneurs registered with ADEM. This programme is jointly implemented by the Agency for the Development of Employment (ADEM), the Chamber of Commerce, the Chamber of Trades and Skilled Crafts, the House of Training, Nyuko asbl and Touchpoints asbl with the financial support of the Ministry of Labour, Employment and the Social and Solidarity Economy. The trainers and coaches/mentors are experts in business creation. The administrative management of the programme is carried out by ADEM. Contact: +352 247 88000, e-mail: email@example.com
Nyuko is an idea challenger, which aims to support project leaders wishing to create their business in Luxembourg and whose idea is not yet fully developed or needs to be further developed. The services are free of charge and are aimed at any type of local entrepreneur in the pre-creation phase of a business in the broadest sense. Contact nyuko via the contact form.