Business permit in Luxembourg: who needs it, how to apply, what it costs

The business permit at a glance

It is the licence that lets you carry out an economic activity in Luxembourg. Without it, the activity cannot legally start.

According to Guichet.lu, with some exceptions, any economic activity carried out on a regular basis requires a business permit (autorisation d’établissement) beforehand. It is issued to the business once the legal conditions are met. Operating without one can lead to criminal penalties (imprisonment and fines) and the temporary closure of the establishment.

Setting up a company? The business permit is one of the five steps in our article Starting a business in Luxembourg: the 5 steps. This article goes into that step in detail.

Who needs to apply?

As a rule, you must apply for a business permit if you engage, either as a self-employed person or as a company, in one of the following activities:

• A commercial activity: trade, HORECA (hotel, restaurant and café), transport, industry, etc.
• A craft activity: food, fashion, construction, mechanical engineering, audiovisual, entertainment, art, etc.
• Certain liberal professions which are mainly intellectual in nature. Guichet.lu publishes the official list of activities that require a permit.

The application is made by the owner of the business for an activity in their own name, or by the company’s authorised representative registered with the Trade and Companies Register (RCS) for a company.

The four conditions

The permit is granted when the business and its manager meet the legal conditions, and these must remain met throughout the life of the business.

1. 1
   The manager’s professional integrity.
2. 2
   A professional qualification matching the activity, where required: for a liberal profession subject to a permit, and for a craftsman unless the activity is on list C.
3. 3
   An establishment in Luxembourg: physical premises suited to the nature and size of the activity.
4. 4
   Effective and permanent management: the permit holder runs the business day to day through a physical presence at the establishment and has a real link with it (owner or authorised representative).

The manager must also be in good standing with tax and social obligations, past and present. For a company, the final grant of the permit requires the articles of association to be filed with the RCS.

Applying on MyGuichet.lu, and the €50

The recommended route is an online application from your MyGuichet.lu business space. You need a LuxTrust “Private” or “Pro” certificate and must be registered on MyGuichet.lu. Based on what you enter, the system lists the documents to attach.

• The stamp duty is €50. Online, it is paid directly during the procedure.
• By post, the application goes to the competent directorate with proof of payment of the €50 (revenue stamp or bank transfer).
• The response and the permit arrive directly in your MyGuichet.lu business space, through the secure messaging system.
• The House of Entrepreneurship of the Chamber of Commerce and the Chamber of Skilled Trades and Crafts’ business contact service can help you prepare the file.

Timeframe, response and tacit authorisation

Applications are usually processed within 3 months of receipt of the complete file. No response before the end of that period is equivalent to a tacit authorisation. Sending a complete file from the start matters: the clock only starts then.

A refusal is an administrative decision: the usual remedies (non-judicial and judicial appeals) remain available within the legal deadlines, and you can also contact the Ombudsman.

Once you hold it: barcode, notifications, changes

• A 2D barcode is assigned to each business permit. It must appear on letters, emails, websites, quotes, invoices and shop fronts of every sales outlet, as well as on construction-site signs.
• Some changes must be notified within one month: a new branch, a change of business premises, opening or closing a sales outlet, or a change of the manager’s usual residence.
• A new permit is required if the corporate purpose changes or is extended, or if the manager whose qualification and integrity the permit relies on changes.
• The permit notably lapses if it is not used for more than 2 years from the date of issue, or in case of bankruptcy.

Other formalities follow with various bodies, including the AED for VAT and the Joint Social Security Centre. If you are self-employed, our guide to CCSS for the self-employed and the CCSS contribution estimator help you plan your contributions.

Example: Marc opens his hair salon

A fictional example, for illustration only.

1. 1
   Marc wants to open a hair salon in his own name. Before his first client, he checks that his activity is a craft and that a qualification may be required.
2. 2
   He rents suitable premises in Luxembourg, where he will run the business day to day himself.
3. 3
   He applies on MyGuichet.lu with his LuxTrust certificate and pays the €50 online.
4. 4
   With a complete file, he receives the response in his business space. His permit’s barcode now appears on his invoices and his shop window.

Once the business is running, the paperwork starts with the first invoice. Zuelen brings together for the self-employed invoices, expenses, banking, VAT and CCSS contributions in one place.

This article is general information and does not constitute legal advice. For your situation, check the official sources or consult a professional.