Luxembourg offers three main advantages for foreign investors: it is diverse and multicultural, it is located in central Europe and the taxes are attractive when it comes to business. The country benefits from its neighboring countries: France, Belgium and Germany and several European Union institutions can be found in the city of Luxembourg.
A good attitude towards foreign investments
Luxembourg welcomes foreign investors from all around the world and there are no discriminations on businesses owned by foreigners. There are no special procedures for the approval of foreign direct investments and there are no economic or industrial boundaries for foreigners and no major sectors in which foreigners are denied access. Also, there is no limit on foreign ownership and control.
Industries that usually present interest to foreigners and where the government encourages investments are: communications, finance, logistics, life sciences, hi-tech industries, research & development and others.
The Board of Economic Development is responsible for foreign investments.
Those who want to open a company in Luxembourg should know that the main types of companies in Luxembourg are:
- private limited liability companies;
- public limited liability companies;
- general and limited partnerships;
- cooperative companies.
In Luxembourg, most commercial activities, like those in the crafts sector (mechanics, constructors, workers in fashion, health and hygiene sectors etc.) and some of the liberal professions require a business permit issued by the Luxembourg Ministry of Small and Medium Sized Businesses. A specific business permit may be needed for certain liberal professions.
The National Credit and Investment Corporation (SNCI) may offer capital grants and long-term loans. The government may also offer capital grants. Certain projects may be funded and small and medium-sized companies may receive support.
Activities focused on new products: research, development and innovation may be financially aided, as well as services and processes, environmental protection and efficient energy utilization.
If you need counseling on how your business can become successful in Luxembourg or if you need assistance for opening a company in Luxembourg, our law firm in Luxembourg is ready to help you.
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