start-up.lu
Succeed in establishing your innovative company in Luxembourg
Brochure published by Luxinnovation, the National Agency for Innovation and Research Luxinnovation is a partnership that regroups 6 different bodies representing the public and the private sector: the Ministry of the Economy and Foreign Trade, the Ministry for Higher Education and Research, the Ministry of Small and Mediumsized Businesses and Tourism, the Fedil – Business Federation Luxembourg, the Luxembourg Chamber of Commerce, the Luxembourg Chamber of Trades
CONTENTs INTRODUCTION
Succeed in establishing your innovative company in Luxembourg
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01 Where to Make Enquiries :
02 How to find your way : The key players
03 How to proceed :
A 7-step process
04 How to prepare :
The Business Plan
05 How to finance :
Specific Financial Aids
06 How to launch the Project :
Authorisations and legal structures
07 How to protect :
Intellectual Property
08 where to set up your business : Incubation
CONTACTS
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8
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12
14
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22
25
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Luxinnovation, your one-stop shop for creating an innovative company
INTRODUCTION : Succeed in establishing your innovative company in Luxembourg You have invented an innovative product, developed a new technology, or imagined an opportunity that has never occurred to anyone else. You are excited about bringing your brilliant idea to market. You are entrepreneurial and confident that your innovation can be a huge success. Don’t let the adrenaline rush make you skip the necessary steps. Remember that if you fail to plan you plan to fail. In order to succeed in establishing your innovative company it is important that you clearly define your goals and strategies, identify your start-up costs and funds required for setting up the business, examine the value proposition of your innovation and develop your business plan for the next two, three, five years. Proper planning prevents poor performance! Luxinnovation will guide you through the whole process of launching your innovative company in Luxembourg. The Agency helps to find the right partners, assists in developing your business plan and keeps you informed on national and European funding opportunities. Participation in the Luxembourg Cluster Initiative, that is animated by Luxinnovation as well, will allow you to establish links to future clients, R&D providers and business partners in Luxembourg. “ Start-up.lu ” contains all the useful information you will need to turn your idea into a successful enterprise. It shows how to benefit from the existing networks, tools and support schemes in Luxembourg. Enjoy reading and have a great start!
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Gilles Schlesser Managing Director
Where to Make Enquiries : Luxinnovation, your one-stop shop for creating an innovative company Luxinnovation, the National Agency for Innovation and Research, is your key point of contact for launching an innovative start-up in Luxembourg. Working in close partnership with the Ministry of the Economy and Foreign Trade, the Ministry for Higher Education and Research, the Ministry of Small and Medium-sized Businesses and Tourism, the Luxembourg Chamber of Commerce, the Luxembourg Chamber of Trades and the Fedil - Business Federation Luxembourg, Luxinnovation is operating at the heart of the national R&D and innovation system.
Have a business idea ?
Looking for partners ?
Luxinnovation can facilitate the process of establishing contacts with different key players in business creation such as the services “ Espace Entreprises ” at the Luxembourg Chamber of Commerce or “ Contact Entreprise ” at the Luxembourg Chamber of Trades. Luxinnovation seeks to put entrepreneurs in contact with the relevant partners, including Ministries, administrative bodies, public research centres, intellectual property advisors, etc. The Agency supports you, among other things, with the drafting of a business plan suitable to your company and analysing the viability of your project.
Luxinnovation is a member of various networks and has developed many partnerships in Luxembourg and internationally from which you can benefit- whether you are looking for a technology, industrial or commercial partner.
Searching for financing ? Luxinnovation helps you with the necessary requests for national and international public financing and informs you about the different types of private financing opportunities ( banks, business angels, venture capital, etc. ).
Useful links : Luxinnovation : www.luxinnovation.lu Luxembourg Portal for Innovation and Research : www.innovation.public.lu De Guichet - Luxembourg Business Portal : www.guichet.public.lu
Need to protect and evaluate your research results ? Luxinnovation helps you define your needs and keeps you informed on the processes of intellectual property protection and technology transfer.
Looking for a host site ?
Your contact at Luxinnovation Marc Ferring Senior Executive Advisor Head of National Funding and Start-up Support Services +352 43 62 63-1 marc.ferring@luxinnovation.lu 7, rue Alcide de Gasperi L-1615 Luxembourg
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Luxinnovation informs and advises you on the possibilities of hosting your activities within an incubator ( Ecostart in Foetz and Technoport in Esch-sur-Alzette ).
how to find your way : the key players One key to success for an innovative company is the ability to create synergies.
Benefit from the capacities and equipment from public research laboratories The University of Luxembourg and four public research organisations are in charge, among other things, of structuring the technological and scientific environment in Luxembourg and providing entrepreneurs and companies with advice. They can assist you in : Fundamental and applied research ; Development of tools, methods, labels and norms ; Technological assistance. Initiating collaborative projects with these different actors means accessing high-tech equipment that could be useful for tests or for prototypes.
Environment / Civil Engineering
Human and Social Sciences CEPS / INSTEAD ; Faculty of Humanities, Human Sciences, Arts and Education.
Environment & Agri-biotechnologies ( EVA ) ; Resource Centre for the Environment Technologies ( CRTE ) ; Resource Centre for the Civil Engineering Information Technologies ( CRTI-B ).
Information and Communication Technologies Service for Science and Innovation ( SSI ) ; Computer Science and Communications ( CSC ) ; Informatics, Systems and Collaboration ( ISC ) ; Security, Reliability and Trust ( SnT ).
CONTACTS IN YOUR RESEARCH FIELDS Life Sciences
LAW AND finance Faculty of Finance, Economy and Law.
Automotive / Engineering / Materials Engineering Sciences Research Unit ; Advanced Materials and Structures ( AMS ) ; Science and Analysis of Materials ( SAM ) ; Physics and Materials Research Unit.
Legend :
CRP Gabriel Lippmann /
CRP Henri Tudor /
CRP – Santé /
Research laboratories : Cardiovascular diseases, Immunology, Oncology, Public Health, Virology-Allergology-Immunity ; Competence Centres : Clinical and Epidemiological Investigation Centre ( CIEC ), Luxembourg Biomedical Research Resources ( LBRR ), Methodology and Statistics ( M&S ) ; Integrated Biobank of Luxembourg ( IBBL ) ; Cancer Cellular and Molecular Biology Laboratory ( LBMCC ) ; Luxembourg Centre for Systems Biomedicine ( LCSB ) ; Life Sciences Research Unit ; Research Centre for Healthcare Technologies ( SANTEC ).
CEPS / INSTEAD /
University of Luxembourg
www.clusters.lu : Benefit from a dynamic network A cluster is a grouping of actors ( companies, public research centres, private laboratories, etc ) ; who share common interests and develop cooperations in one or more technological domains. For young innovative enterprises, the clusters can help to identify companies and researchers within the same sector. Advantages of the Luxembourg Cluster Initiative : Promote competitiveness through synergies among participants ;
Luxinnovation manages five thematic technology clusters : Luxembourg BioHealth Cluster ; Luxembourg EcoInnovation Cluster ; Luxembourg ICT Cluster ; Luxembourg Materials Cluster ; Luxembourg Space Cluster. Logistics and maritime activities represent other innovation sectors in which cluster activities have been set up: Luxembourg Cluster for Logistics and Cluster Maritime Luxembourgeois.
Enable discussions and exchange of ideas on technological problems and solutions ( knowledge exchange ) ; Contribute to the development of innovative products and services ; Create access to new markets ;
Useful links : Luxembourg Cluster Initiative : www.clusters.lu Luxembourg BioHealth Cluster : www.biohealthcluster.lu Luxembourg EcoInnovation Cluster : www.ecoinnovationcluster.lu Luxembourg ICT Cluster : www.ictcluster.lu Luxembourg Materials Cluster : www.materialscluster.lu Luxembourg Space Cluster : www.spacecluster.lu Luxembourg Cluster for Logistics : www.clusterforlogistics.lu Cluster Maritime Luxembourgeois : www.cluster-maritime.lu
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Provide easy access to information on innovative, emerging technologies.
Acquiring or Commercialising Technologies Have you developed a technology but do not wish to use it yourself ? Are you interested in acquiring technology developed in another country ?
In Luxembourg, the Enterprise Europe Network is run by Luxinnovation, the Luxembourg Chamber of Commerce and the Luxembourg Chamber of Trades.
The Enterprise Europe Network is a European network that groups together more than 600 local partners across more than forty countries. The network can support you during the various steps of the transnational technology transfer process : Support during the process of technology transfer ( defining needs, finding partners, negotiating licence agreements, joint venture or spin-off, etc. ) ; Analysis and targeted distribution of your technology offers and requests on the European level.
Useful links : Detailed information on innovative companies and Luxembourg public research centres can be found at : www.innovation.public.lu. Information on the technology market can be found on the Luxembourg Portal for Innovation and Research : www.innovation.public.lu
How to proceed : A 7-step process
Project Is it viable ? What are the innovative aspects ? What added-value does it bring to the
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market ? What are the opportunities on the market ? How do I conduct a market study ? How do I write a business plan ?
Looking for Financing How much should I invest in my
project ? Where can I find funding and the required capital ?
Choice of Statutes and Procedures What legal structure should I choose ? What authorisations do I need ?
Starting Up What team should I build up ? What technologies do I need in order to be operational ?
How can I access these technologies ? What technologies do I hold and what others do I have to acquire ?
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First Years of Operation How much time will it take to be operational ?
What are the expected results in the first 3 to 5 fiscal years ?
How can I ensure the sustainable existence of my company ?
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4
QUESTIONS STEP
3
QUESTIONS STEP
2
QUESTIONS STEP
product/service ?
QUESTIONS STEP
How do I precisely define the idea ? Is it technically feasible ? Am I capable of developing it myself ? Who are my potential clients ? Why will a client purchase my
5
QUESTIONS STEP
Idea
QUESTIONS STEP
1
QUESTIONS STEP
In order to turn your innovative idea into a successful enterprise, the following steps should be followed on your road to success :
How to prepare : The Business Plan The business plan is an essential document for the future entrepreneur as it lays out various elements including your idea, the market you are targeting, the necessary means for launching your activity, how the project will be financed and what the expected results should be.
Why should I develop a Business Plan? First of all it is a benefit to you ! It is the tool that validates the feasibility of your project, allows you to evaluate the market potential and to verify that a demand in fact exists for what you are offering. The business plan has to highlight the strategy of your company. Your business plan is a confidential document. Although it is intended for all potential partners, be careful when selecting those whom you choose to grant access to the details of your strategy. 1, 2, 3, Go is a business plan competition on the scale of the Greater Region : it allows project owners to benefit from personalised follow-ups by volunteer coaches, experienced entrepreneurs or certified experts.
It is also an important communication tool for all potential partners of your future company :
The business plan is not a static document ; changes occur on a constant level. It is like a dashboard that allows you to steer your company in the right direction. Keeping the business plan up to date requires having a clear, precise vision of ones strategy. Luxinnovation is at your disposal in case of any questions and in need of an indepth look at your business plan.
Financial partners : banks, business angels, capital risk funds, government ; Industrial partners ; Commercial partners ; Technological partners.
Useful links : 1, 2, 3, Go : www.123go-networking.org Help in setting up a business plan can be found at : www.businessplan.lu
How to write a business plan Objectives
Questions to consider
Executive Summary
Make the readers curious to read the entire business plan by giving them key information and figures
What interest does the business project invoke ? How can you summarise the project idea and the key points ?
Idea, Product, Service
Ensure that people understand what your company would like to do and what you are offering ( including those who are not in the business )
What is your idea ? What is your product or service ? What differentiates you from the current market ? Why should the client choose your solution ?
Market
Present the market in which you wish to operate
What customer needs are you satisfying ? What is your market ? What market segments are you targeting ? What is the current market situation ?
Competition
Identify direct and indirect competitors
Who are your direct and indirect competitors ?
Team
Present the capacities of the project initiators
Who are the members of the project team ? What competencies do the members have ? In what way are the members complementary and indispensable ?
Marketing Plan
Present your marketing strategy
What is your strategy ? ( the 4Ps : product, price, place, promotion )
Business Model & Organisation
Present the manner in which the activity of the company will be structured
What will your activities be ? What activities will you undertake internally ? What will you subcontract ? How will you organise the company internally ?
Operational Plan
Present the development perspectives of your company
At what rate will you grow ? What resources ( human, material, financial, etc. ) will you need ? How and when will these resources be employed ?
Risks
Present the risks of your project
What are the risks you might need to face ? What is the worst-case scenario ? The best-case ? What will you do to minimise the risks ?
Financial Plan
Define the feasibility and financing needs of your company
What are your financing needs ? What are the financing sources ? What are the forecasted expenses and revenues for the first five fiscal years ? >Present this data in three tables : balance sheet, income statement and cash flow statement forecast for at least the first three years. What is the expected return on investment ( ROI ) ?
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Section
How to finance : Specific Financial Aids Every project needs financing. It is most often the funding principle of the “ three thirds ” that applies : one third of your own ( private ) equity, one third from borrowing and one third from financial aid. Innovative companies can benefit from various specific financial aids.
What sources of private equity exist and how can you raise the necessary funds ? Financing is not guaranteed ! Do not forget to present a complete and detailed report.
Being an entrepreneur means also taking risks : it is quite often the entrepreneur’s personal resources that constitute the first source of private equity. This is also a way for the entrepreneur to prove to other investors that he himself believes in the project ; Investors, mostly private at this level, contribute with their own funds : personal networks, business angels, capital risk funds, etc ; The “ Société luxembourgeoise de capital-développement pour les PME S.A. ( CD-PME ) ” addresses companies that have already developed their first product or service and need to strengthen their own equity funding to finance their development.
Where can you borrow from ? From commercial banks ; If necessary, pledge societies and lodging security can allow you to satisfy the guarantee requirements set by the bank.
What public financial aids can you benefit from ? We distinguish between public aid for investment and public aid for research and innovation. Specific aid for exportation and for professional development also exists.
Investment Aids SUBSIDIES Investment aid from the Ministry of Small and Aid for Small and Medium-sized Enterprises ( SMEs2 ) 1 Medium-sized Businesses and Tourism from the Ministry of the Economy and Foreign Trade For whom ?
Skilled Craft and commercial companies
How much ?
Up to 10 % for SMEs2 and up to 20 % for small companies2 of Up to 10 % for SMEs2 and up to 20 % for small companies2 of the cost the cost of tangible and intangible assets. The amount of aid of tangible and intangible assets, in the form of capital subsidies can be increased by 10 % in the case of first establishment
Industrial and services companies
LOANS Start up Loan3
Equipment loan 3
For whom ?
Entrepreneurs engaging in their first business venture
All companies
For what ?
Co-financing of tangible and intangible expenses necessary for the realisation of a business plan ( buildings, tools, licenses, start-up expenses, inventory, working capital, etc ) Between € 5,000 and € 250,000 ; cannot exceed 40 % of the eligible amount Upon presenting the National Society for Credit and Investment ( SNCI ) with a business plan and a complete financing plan, of which personal investments represent at least 15 % of the eligible amount
To finance tangible and intangible assets, with the exception of short- and long-term inventories ( rolling stocks and inventory )
How much ? How ?
From 25 % to 60 % ( up to 75 % for a start-up ) of the eligible amount, to a maximum of € 2,5 million Through an intermediary of your regular bank
Aid for Research, Development and Innovation ( RDI ) 4 Young innovative enterprises that meet the requirements of a small enterprise 2 can benefit from several RDI aids : Aid for research and development ( R&D ) projects or programmes : Up to 100 % of the eligible amount for fundamental research projects ; Up to 70 % of the eligible amount for industrial research projects ( Ministry of the Economy and Foreign Trade ) ;
study must permit an identification of the technological risks, the advantages of a product compared to competing products, or an assessment of the potential of a technology for the development of a new application. The maximum allowable aid intensities vary according to the type of study. For a study prior to an industrial research activity : 75 % of the eligible costs for SMEs ; 65 % of the eligible costs for large enterprises.
Up to 45 % of the eligible amount for experimental development projects ( Ministry of the Economy and Foreign Trade ) or precompetitive projects ( Ministry of Small and Medium-sized Businesses and Tourism ) ;
For a study prior to an experimental development activity :
In the case of an actual cooperation with a Luxemburg public research organism or EU company, an increase can be granted.
Aid for the Protection of Technical Industrial Property
Aid for Technical Feasibility Studies This relates to a study conducted prior to a Research and Development ( R&D ) project or programme in order to determine the technical feasibility of the project or programme. This type of
50 % of the eligible costs for SMEs ; 40 % of the eligible costs for large enterprises.
Besides national funding opportunities, innovative startups in Luxembourg can also benefit from European RDI programmes (FP7, Eureka, ESA, CIP, etc.). Luxembourg is the National Contact Point (NCP) for these programmes and assists you during the whole application process.
This aid is reserved for Small and Medium-sized Enterprises ( SMEs ) and private research organisations ( meeting the SME criteria ) established in Luxembourg. Up to 100 % for expenses following a fundamental research activity ; Up to 50 % for expenses following an industrial research activity ;
1. Act of 30 June 2004 establishing a general framework of aid schemes for the middle class sector.
The category of SMEs is made up of companies employing less than 250 persons, whose turnover does not exceed € 50 million and whose annual report does not exceed € 43 million. However, the concerned companies can, under certain conditions, lose their position as a small or medium enterprise if they are not autonomous. The complete Grand Ducal regulation of 16 March 2005 amending the definition of micro, small and medium enterprises can be found on the Luxembourg Portal for Innovation and Research under the category “ Financial support for your projects ”, “ Financing R&D and innovation projects in a company ” : www.innovation.public.lu 3. Amended act of 2 August 1977 concerning the creation of a SNCI ( National Society for Credit and Investment ) 4. Amended act of 5 June 2009 relative to the advancement of research, development and innovation.
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2. The category of small companies is made up of companies employing less than 50 persons and whose turnover or annual report does not exceed € 10 million.
Caution : The information presented in this chapter is meant for first orientation and is not exhaustive. The Law of 5 June 2009 includes other aids in particular for companies developing organisational innovations in the service sector. Ask Luxinnovation to identify which aids can apply to your project !
Up to 25 % for expenses following experimental development activities ;
Innovation advisory services and innovation support services :
A bonus of 15 % can be added for technical intellectual property expenses incurred at the end of an effective collaboration with at least one public research organisation in Luxembourg or one enterprise in Luxembourg or in another EU member state. Subcontracting is not considered to be effective collaboration.
This scheme encourages SMEs to make use of external services in order to initiate and support their innovation activities.
Aid for young innovative enterprises : This aid aims to help covering the funding needs of young innovative enterprises, with high growth potential, during their development phase. This aid targets small enterprises or small private research organisations established in Luxembourg that were created less than six years before the aid is granted and : in the foreseeable future, will develop new products, processes or services that involve a significant risk of technical or industrial failure ; OR that have used at least 15 % of their operating expenses for R&D over at least one of the three years preceding the granting of the aid, or over the current year. All expenses are eligible. This aid is therefore particularly suitable for supporting the company’s commercial development or for setting up its infrastructure. Up to € 1 million for young innovative enterprises. This aid must be matched with private funding.
The maximum intensity of the aid corresponds to 75 % of the eligible costs and is limited to € 200,000 over three years. Temporary secondment of highly qualified personnel : The intention of this measure is to facilitate access to highly qualified human resources from public research organisations or large enterprises who can contribute knowledge and expertise. This aid is reserved for SMEs established in Luxembourg. Up to 50 % of the eligible costs during three years, for the secondment of personnel coming from a large enterprise or from a research centre, assigned to a new function, having worked at least two years in a research centre or a large enterprise, performing RDI activities with the aid recipient. Innovation in processes and organisation within the field of services The aid is open to all companies on the understanding that large enterprises must collaborate with at least one SME. The following conditions must be met : organisational innovation must be related to the use and exploitation of Information and Communication Technologies ( ICT ) ; the project or programme must be managed by an identified and qualified project manager, and the costs of the project or programme must be
Eligible costs include : personnel expenses ; costs for the use of instruments, equipment, machines, tools, installations, land and buildings ; materials and other consumables ; subcontracting costs ; overhead expenses ; any other type of costs directly associated with the project. The maximum aid intensities are as follows : 15 % of the eligible costs for large enterprises ; 25 % of the eligible costs for mediumsized enterprises ; 35 % of the eligible costs for small enterprises.
Other Aids Be aware that other funding tools appropriate for start-ups exist, such as aids for promotion, exhibitions and export training, as well as aids for continuous vocational training.
Aid for promotion, exhibition and export training expenses Created by the ODL, the Luxembourg Export Credit Agency, and the Luxembourg Government, the Committee for the promotion of Luxembourg exports ( COPEL ) supports Luxembourg exports through a partial participation in promotion, exhibition and export training expenses. This financial support complies with the European regulations relative to public aids in the area of export goods, in particular with the “ De Minimis ” measures ( which is capped to € 200,000 per period of three fiscal years ). You can request financial support for : Design and translation of promotional support ( brochures, CD-Roms… ) : The design and translation of quality promotional materials, implemented by third-party service providers and intended for prospecting of export markets may be granted official support ; Trade fairs, specialised shows abroad, seminars and conferences : The annual ceiling for co-financing of participation in trade fairs and specialised shows is limited to € 40,000 per company. The eligible costs are divided into two broad categories, namely the site rental costs and the booth development expenses ( design aspect ) : Site rental costs : Expenses spent on the lease area including those automatically charged by the organisers ( e.g gross price of the rented space, registration for the official catalogue of the exhibition ) ; Booth development expenses ( design aspect ) : infrastructure costs of the stand, the basic techniques connections ( connection to water and electricity ), the expenses associated
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budgeted ; the project or programme must lead to the development of a standard, a business model, methodology or concept that can be systematically reproduced ; the innovation must be a novelty or a significant improvement on the stateof-the-art in the relevant sector within the EU ; the project or programme must involve a genuine risk of failure.
with transportation of material exposure. Regarding the acquisition costs or rental of multimedia equipment, the COPEL intervention is limited to € 1,000 per event. Participation in on-site promotional costs is limited to expenses of the design of brochures / posters for the purpose of the event ; The support of the COPEL for the site rental costs is limited to : > 50 % for the first 3 participations > 25 % starting from the 4th participation
Consultancy services, etc. ( legal, tax, marketing, etc. ) provided by third parties are eligible up to a maximum of 50 % of incurred expenses, provided those services are required for the launch of a new product or service, or of an existing product on a new market ; Opening of representation offices outside the EU : The opening of individual or collective representation offices outside the EU in order to develop market positions. It must be a branch where the concerned companies will be able to explore more easily the targeted market( s ). The market( s ) in question must be new.
> 10 % starting from the 11th participation
Condition :
> No support of the COPEL after the 20th participation.
SME with a workforce in Luxembourg between 10 and 100 employees.
Financial support for maximum 50 % of the registration fees for 2 representatives may be granted to Luxembourg companies taking part in seminars and conferences with a direct and irrefutable link to the promotion of foreign trade. Export training : Maximum financial support of 50 % may be granted for registration fees of training with a direct and irrefutable link to the promotion of foreign trade ; Advertising costs : Following expenses may be co-financed up to 25 % with a ceiling of € 10,000 per company : > Advertising costs for guides, magazines, catalogues, CD- ROMs and websites of a professional and international nature, > Application fees for specialised websites as well as for advertising mailings, > Costs for the creation of commercials.
Eligible costs : Salary of local employees ( secretary or assistant ) ; Office rent ; Rental charges ; Rental of furniture and equipment ; Supplies ( stationery, telecommunications, etc.. ) ; Legal assistance. Intervention : The operation costs of the first year only are be taken into account ; Individual office : max. 50 % with a ceiling of EUR 32.500 per company ; Collective office : max. 75 % with a ceiling of € 65.000. The financial support will be distributed among SMEs in proportion to their participation in the common costs of the office. However no relationship can exist between SMEs.
Refund based on the following documents : Invoices and supporting documents relating to the operation of the office, collected by type of cost allowed, numbered and accompanied by a summary table ; Report of activities of the office for each company concerned. International call for tenders from nonEU countries Any individual or collective initiative for participation in international call for tender from outside the EU may be subject to a refundable advance ; Condition : The market( s ) in question must be new and each individual market shall not exceed 25 % of the company’s annual turnover. Eligible costs : Travel expenses and accommodation costs of the concerned country ; Fees of internal or external studies provided that these studies have a direct link with participation in the concerned request for proposal ;
Intervention : > maximum 2 per year, > action level : 75 % of expenses incurred Payment of the refundable advance on the basis of the following documents : Proof of submission of the offer ; Supporting documents for expenses actually accepted ( invoices and proof of payment ) ; If the studies were conducted within the company, they must have been kept under detailed benefits and payroll records of the concerned expert, accompanied by a summary table. Reimbursement of the refundable advance : The company must publish the results of the market attribution within 30 days from the date of appointment of the successful tenderer ; In case of market attribution : total reimbursement of the refundable advance.
Useful links : Capital Development for SMEs ( Capital-Développement pour PME – CD-PME ) : www.snci.lu/fr/pme.php The National Institute for the Development of Continuous Vocational Training ( INFPC ) : www.lifelong-learning.lu The Ministry of Small and Medium-sized Businesses and Tourism : www.mcm.public.lu The Ministry of the Economy and Foreign Trade : www.eco.public.lu Mutualité d’Aide aux Artisans : www.maa.lu Mutualité de Cautionnement et d’Aide aux Commerçants : www.cc.lu ODL - Luxembourg Export Credit Agency : www.ducroire.lu National Society for Credit and Investment ( SNCI ) : www.snci.lu
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Fees of purchase of the tender specifications.
How to launch the Project : Authorisations and legal structures It is necessary to deal with authorisations and legal issues as early as possible since these elements are crucial factors in the launch of your activity and the demand for financial aids.
What do I need to launch my business activities ? Business Permit : It is a systematic pre-condition to the launch of your business activity ; It is individual and attached to the person in charge. In case of any changes a new authorisation of establishment will become necessary ;
Authorisations to operate ( Commodo / Incommodo ) A special operating authorisation relevant for all production companies ; It corresponds to rules and strict norms ( environmental protection and worker safety ) and requires a highly detailed report of your business.
It is necessary to include a detailed description of the company’s future activities as the legal requirements will vary accordingly ; The applicant has to justify his standing and qualifications. The documents vary depending on the activity ; It is systematic, regardless of the type of activity sector the company chooses to engage itself in : commercial trade, handicraft, industry, liberal professions.
Useful links : De Guichet - Luxembourg Business Portal : www.guichet.public.lu. Luxembourg Chamber of Commerce – Espace Entreprises : www.cc.lu Luxembourg Chamber of Trades : www.cdm.lu
What structure should I choose for my company ? In order to make the right choice, you should first ask yourself a few questions : What business activities will your company engage in ? What company size are you aiming for ? What is the source and the nature of the investments ? What impact will the entrepreneurial activitiy have on your private life ? Legal structures for companies : There are six different legal structures that exist in Luxembourg. The two most commonly used are : Société Anonyme ( S.A. )
Minimum Capital
€ 12 500
€ 31 000
Incorporation
Notary-drawn deed
Notary-drawn deed
Liability
Limited to Contributions
Limited to Contributions
Unconditional transfer of shares
No
Yes
In Luxembourg, you may benefit from a lot of flexibility when organising your company : you will receive quick and competent feedback tailored to your specific situation.
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Société à responsabilité limitée ( Sàrl )
How to protect : Intellectual Property Every innovative company will be confronted with the challenges of intellectual property ( IP ) at some point ; whether it is a matter of protecting the company’s own IP or ensuring that the company does not violate the IP rights of another firm. The Luxembourg Government supports the protection of IP in companies allowing them to increase their competitiveness. Therefore, a tax regime that favours the use of IP has been put in place. It allows net revenues generated from the use of an intellectual property right ( IPR ) to receive an exemption of up to 80 %.
WHAT ARE THE DIFFERENT INTELLECTUAL PROPERTY RIGHTS ? intellectuAL PROPERTY
LITERARY AND ARTISTIC PROPERTY
INDUSTRIAL PROPERTY
PATENTS
TRADEMARKS
DESIGNS
Why protect your intellectual property ?
What is intellectual property ? According to the World Intellectual Property Organisation ( WIPO ), IP can be defined as “ creations of the mind : inventions, literary and artistic works, and also symbols, names, images, designs and models as they are used in business. ”
RDI is worth cash : if you don’t protect the results, your competitors are free to copy them ;
COPYRIGHTS
SIMILAR RIGHTS
Who is the owner of an Intellectual Property Right ( IPR ) ? Luxembourg law foresees that the employer is the owner of IPR, unless agreed otherwise.
By protecting the results of your company’s RDI, you can ensure a certain monopoly on a given territory ; By protecting your company’s IP, you can organise the relationships with your partners ( for example, in the licensing framework agreement ).
Useful links : Intellectual Property Office : www.eco.public.lu Benelux Office for Intellectual Property : www.boip.int European Patent Office : www.epo.org Office for Harmonisation in the Internal Market : www.oami.europa.eu World Intellectual Property Organisation : www.wipo.int Technology Watch Centre – CRP Henri Tudor : www.veille.lu
Patent What is it ? It protects an invention and offers the exclusive right of use in one or more national territories, during a maximum period of twenty years, depending on the payment of annual instalments. The patent can also be applied to product or process improvement. In order for a patent to be issued, the invention in question must satisfy three essential criteria : Present a new element : the invention cannot already exist in the state-of-theart ; It must involve an inventive phase : a person competent in the domain, starting from the state-of-the-art, should not be able to easily develop the invention ; It must present an industrial application : in other words, it must be a technical solution to a technical problem. Before starting the protection process, it is necessary to verify that all three criteria are fulfilled. How does it work ? The patent request must be filed with the Intellectual Property Office of the Ministry of the Economy and Foreign Trade.
This request should include : An application form for issuance of a patent ; A description of the invention ; Patent claims ; Drawings and a summary that the description or claims refer to ; An abstract.
The Technology Watch Centre at CRP Henri Tudor can provide preliminary research to assess the novelty of your invention.
A unique European filing procedure ( through the European Patent Office ) as well as International ( through the WIPO ) is used. Once the taxes relating to the procedure and the administrative charges are paid, the patent can be published. This publication occurs 18 months after the registration of the patent request. A patent filed in Luxembourg is only valid in Luxembourg. To protect an invention in other countries, parallel requests must be filed in the necessary countries. Brand What is it ? The brand corresponds to all the likely signs of a graphical representation, provided that the signs are appropriate in distinguishing the firm’s products or services from those of another company. It cannot be similar to something that already exists. A brand can be verbal ( i.e. a name ), figurative ( i.e. a logo ) or a combination of the two ( even a sound ). Also, think about protecting the domain name for your website !
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What does Industrial Property include ?
Ideas, methods, and concepts cannot be protected ! If you have a business idea, be careful about sharing information ! Let any potential partner sign a confidentiality act. Once your IP has been filed, ensure it is upheld and take action against any form of infringement. The filing of an intellectual property right can prove to be long and somewhat tedious. You may consider asking advice from an IP representative or a specialised lawyer.
How does it work ? There is no national procedure in Luxembourg : the protection covers all three Benelux states ( Belgium, the Netherlands and Luxembourg ). Requests are to be filed with the Benelux Office for Intellectual Property ( BOIP ) or the Intellectual Property Office of the Ministry of the Economy and Foreign Trade. The Office for Harmonisation in the Internal Market ( OHIM ) allows filing to occur on a community level while the World Intellectual Property Organisation ( WIPO ) is involved on an international level. Regardless of the geographic region covered by the protection request, it is generally valid for ten years and renewable indefinitely, as long as the necessary taxes are paid. Design or Model What is it ? It protects the appearance or visual aspect of a product or a part of a product ( the visual or esthetical aspects, twodimensional design or three-dimensional model ). How does it work ? As in the case of the brand, there is no national procedure in Luxembourg : the protection is effective either in Benelux ( through the BOIP ), on a community level ( through the OHIM ), or on a world-wide level ( through the WIPO ). Overall, the protection is valid for five years, renewable a maximum of four times.
What does literary and artistic property include ? Copyright and RELATED Rights What is it ? It protects works in the literary, artistic or scientific domains, including computer programmes and databases, as long as they demonstrate originality. How does it work ? The rights exist from the moment of creation and do not require a specific registration procedure. In case of litigation, it is necessary, however, to have proof of the date it was created. Services like i-DEPOT, proposed by the BOIP, can be a simple, inexpensive way to obtain such a proof for a period of five years ( renewable ).
WHERE to set up your business : Incubation Whatever the domain in which you are starting an innovative business, your company will need space to flourish and grow. Luxembourg presents an interesting solution for future entrepreneurs and young innovative start-ups : incubation.
what is Incubation ? A temporary base for innovative project leaders ; Accommodation to help in the start-up phase of young innovative enterprises ; Temporary premises for foreign companies in the development phase looking for a solution in Luxembourg ; Solutions adapted for all types of need : industrial halls, workshops and wellequipped offices in Foetz and Belval’s City of Sciences.
What are the criteria ? The project must be innovative and preferably oriented towards the development of technologies ; The project must be based on a solid business plan.
Integrates a pre-incubator phase in order to accompany you from idea to creation ; Provides advantageous renting conditions for a limited period of time ; Enables personalised monitoring ( visits at regular intervals, tailored services, etc. ) ;
Ecostart
Allows networking ( actions to encourage communication between hosted companies, organisation of events on the spot, etc. ) ; Provides visibility for the business ( media coverage of hosted companies, press coverage, representation at fairs ) ; Offers benefits from training sessions intended for entrepreneurs as well as employees ( project management, startup financing and activity development, Luxembourg language training ).
Technoport
The National Incubator in Esch-Belval. Image by the Fonds Belval.
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It is the innovative character of your project and not the sector of activity that counts. In Luxembourg, it is possible to benefit from incubation regardless of the area in which you are active.
What are the advantages of incubation for you ?
Useful links : Ecostart : www.incubateur.lu Technoport : www.technoport.lu
CONTACTS Luxinnovation - Your first-stop shop for creating innovative companies : National Agency for Innovation and Research www.luxinnovation.lu
Portals dedicated to innovation and entrepreneurship : De Guichet- Luxembourg Business Portal www.guichet.public.lu Luxembourg Portal for Innovation and Research www.innovation.public.lu
State aid and funding : Capital-Development for SME’s ( CD-PME ) www.snci.lu/en Ministry of Small and Medium-sized Businesses and Tourism www.mcm.public.lu Ministry of the Economy and Foreign Trade www.eco.public.lu Mutualité d’aide aux artisans ( aid mutuality for skilled crafts ) www.maa.lu Mutualité d’aide aux commençants ( aid mutuality for merchants ) www.cc.lu National Institute for the Development of Continuous Vocational Training : www.lifelong-learning.lu ODL: Luxembourg Export Credit Agency www.ducroire.lu Société Nationale de Crédit et d’Investissements ( SNCI ) www.snci.lu
Main public research organisations : CEPS / INSTEAD www.ceps.lu Virtual Resource Centre for Knowledge about Europe ( CVCE ) www.cvce.lu Integrated BioBank of Luxembourg www.ibbl.lu Interdisciplinary Centre for Security, Reliability and Trust ( SnT ) www.uni.lu/snt Luxembourg Centre for Systems Biomedicine ( LCSB ) www.lcsb.lu Public Research Centre for Health www.crp-sante.lu Public Research Centre Gabriel Lippmann www.lippmann.lu Public Research Centre Henri Tudor www.tudor.lu University of Luxembourg www.uni.lu
CHAMBERS AND PROFESSIONAL FEDERATIONS : Chamber of Commerce www.cc.lu Chamber of Trades www.cdm.lu Fédération des Artisans ( craftmans’ federation ) www.fda.lu Fedil – Business Federation Luxembourg www.fedil.lu Luxembourg Trade Confederation ( CLC ) www.clc.lu
SUPPORT for Business Plan : 1,2,3,GO interregional business plan contest www.123go-networking.org Assistance tool for the setting-up of a Business Plan www.businessplan.lu
Intellectual Property / Technology Watch : Benelux Office for Intellectual Property www.boip.int European Patent Office www.epo.org Intellectual Property Office, Ministry of the Economy and Foreign Trade www.eco.public.lu Office for Harmonisation in the Internal Market www.oami.europa.eu Technology Watch Centre - CRP Henri Tudor www.veille.lu World Intellectual Property Organisation www.wipo.int
Networks : Entreprise Europe Network – Luxembourg www.een.lu Luxembourg Cluster Initiative www.clusters.lu
IncubatorS : Ecostart www.incubateur.lu Technoport www.technoport.lu
NOTES
NOTES
www.start-up.lu Luxinnovation, National Agency for Innovation and Research 7, rue Alcide de Gasperi L-1615 Luxembourg – Kirchberg T + 352 43 62 63 - 1 F + 352 43 81 20 info@luxinnovation.lu www.luxinnovation.lu www.innovation.public.lu
MAKING INNOVATION HAPPEN