It has been passed yesterday by Luxembourgish MP’s. However, the bill giving entrepreneurs the opportunity to set up their business fast and cheap isn’t new. Even though the concept of simplified company had already been suggested by the Chamber of Commerce in 2011, it took a few years to actually make the dream come true. At the time, Luxembourg had been ranked 77th worldwide in terms of ease of business by the World bank because of the hurdles to business creation in the country. As compared to its neighboring countries France, Belgium and Germany, who had already imagined simplified business creation solutions, Luxembourg had to catch up!
Until now, you were required to have a minimum capital of 12500 euros to set up a limited liability company. This is a struggle for young entrepreneurs that are looking forward to starting a new business. The main objectives of the simplified company are to leverage the entrepreneurial spirit, to stimulate growth, and to foster job creation. To design this new company type the Luxembourgish government was inspired by its Belgian and German neighbors ( respectively SPRL-Starter and Mini-GmbH) who have already proven the viability of the concept.
Leverage the entrepreneurial spirit, stimulate growth, and foster job creation
In order to make the simplified company a reality, several aspects of the company creation process have been reviewed including: the minimum capital required, the need to submit a financial plan, the necessity of a notary and the adjustment of the trade registration fees. All included, the “Sàrl-S” should cost to the entrepreneur about 191 euros. This simplified process is primarily designed for companies offering services, and comes with two conditions: the share capital shouldn’t exceed 12394.68 euros and the associates should allocate 5% of the annual profits to a provision with a cap of 12000 euros.
This new company type will officially be launched next January 17, 2017. The Chamber of Commerce will look after the right implementation of the initiative, through the one stop shop for entrepreneurs at the House of Entrepreneurship, where nyuko will also be involved.
So we hope to welcome numerous new entrepreneurs starting from January 2017!