Public petition n°4052

Petitioner: Kristijan Krapić

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Introduction of a targeted, temporary exemption from personal social security contributions for founder-managers of newly created simplified limited liability companies (S.à r.l.-S), for a maximum period of 12 months following registration with the Trade and Companies Register.

The Law of 23 July 2016 enabled the creation of an S.à r.l.-S with a minimum share capital of one euro, with the explicit aim of encouraging entrepreneurship. However, the social security framework has not been adapted to this reality: from the first day of affiliation, a founder-gérant owes social contributions calculated on the minimum wage (EUR2,703.74/month in 2026), amounting to approximately EUR8,205 per year at the combined rate of 25.29% (health 6.10%, pension 17.00%, dependency 1.40%, accident 0.65%, occupational health 0.14% - source: CCSS, social parameters 2026). This amount is due regardless of revenue. A salaried gérant bearing both employer and employee shares faces charges exceeding EUR11,000/year. Luxembourg is the only country among its immediate neighbours with no relief mechanism for business founders. In France, the ACRE scheme provides a 25% exemption on contributions for 12 months (Decree n°2026-69 of 6 February 2026). In Belgium, the primostarter regime allows minimum contributions of approximately EUR1,839/year in the first year - four times less than in Luxembourg. In Germany, self-employed persons are generally not subject to mandatory social contributions at all. The proposed measure includes strict anti-abuse safeguards: the benefit may be used only once every 10 years, applies only to newly created companies where the founder is the active manager, ceases if turnover exceeds EUR100,000, and maintains health coverage throughout. Based on 40 to 60 eligible founders per year (Luxinnovation: 48 startups created in 2024; Startup Luxembourg: 58 in 2025), the maximum annual cost to the social security system is estimated at EUR328,000 to EUR492,000 - modest relative to existing ecosystem investments and the 2026 tax credit for startup investment (Bill n°8526). This measure would reduce early-stage failures caused by fixed costs, encourage entrepreneurial risk-taking, and close a documented competitive gap with all three neighbouring countries.