Starting a Fintech in Luxembourg: Licenses, Legal Forms and Regulation
Mickaël LOC
Fintech & Blockchain Specialist ·
Starting a Fintech in Luxembourg: Licenses, Legal Forms and Regulation
To start a Fintech in Luxembourg, you must choose the license suited to your activity (payment institution, EMI, CASP/VASP under MiCA), prepare an authorisation file with the CSSF, and select the appropriate legal form (typically an SA for structures requiring higher equity). Luxembourg is one of the most attractive Fintech hubs in Europe thanks to its direct access to the single market, proactive CSSF supervision, and leading MiCA framework.
Available licenses for fintechs
- Payment Institution (PI) - PSD2 Directive
- Electronic Money Institution (EMI)
- Credit Institution - Bank
- Alternative Investment Fund Manager (AIFM)
- UCITS Management Company
- Crypto-Asset Service Provider (CASP/VASP) - MiCA Framework
The MiCA regulation and digital assets
Since 2024, the European MiCA (Markets in Crypto-Assets) regulation applies throughout the EU. Luxembourg, through the CSSF, offers an attractive CASP registration and authorisation framework for crypto-asset companies wishing to operate in Europe with a European passport.
CSSF authorisation process
Obtaining a CSSF authorisation requires preparing a complete file: business plan, business continuity plan, AML/KYC policies, shareholding structure, programme of operations. Processing time averages 6 to 12 months depending on the type of license.
Recommended legal form
The SA is generally recommended for fintechs requiring fundraising and a CSSF authorisation (minimum capital required is often higher). The SARL may be suitable for smaller structures or at the startup stage.
Are you starting a fintech in Luxembourg? Our specialists support you in legal structuring, preparation of the CSSF file, and the implementation of compliance policies.
Frequently Asked Questions
What licence is required to set up a payment fintech in Luxembourg?
To provide payment services, you must obtain a Payment Institution (PI) authorisation from the CSSF, in accordance with the PSD2 directive. The authorisation file is complex and the processing time averages 6 to 12 months.
Is Luxembourg a good country for a crypto fintech?
Yes, Luxembourg was one of the first EU Member States to put in place a VASP (Virtual Asset Service Provider) registration framework compliant with the MiCA regulation (2024). A Luxembourg authorisation provides a European passport to operate throughout the EU.
What is the CSSF?
The CSSF (Commission de Surveillance du Secteur Financier) is the Luxembourg financial regulator. It supervises banks, fintechs, investment funds, financial markets and digital asset service providers in Luxembourg.
Which legal form should be chosen for a fintech?
The SA is generally recommended for fintechs requiring CSSF authorisation (the minimum capital is often higher depending on the licence). The SARL is suitable for smaller structures. The SAS offers attractive flexibility for fintech startups during fundraising rounds.
Can a fintech benefit from the IP Box regime?
Yes, if the fintech develops protected proprietary software, it can benefit from the Luxembourg IP Box regime, which exempts 80% of income from eligible intellectual property, bringing the effective tax rate to around 4.99%.
