A Luxembourg company may not trade until the Ministry of the Economy grants its business permit. General trade, services and IT need no qualification, only integrity; crafts, real estate and some liberal professions do. Every permit tests the same three things: real premises (a domiciliation is not enough), a registered manager who actually runs the business, and a clean record. The Ministry decides within three months of a complete file, and silence means yes.
What the business permit is, and who needs it
In Luxembourg you cannot trade just because your company exists. Anyone who habitually carries on a commercial, craft, industrial or listed liberal-profession activity for profit needs a business permit, the autorisation d'établissement, issued by the Ministry of the Economy. The company can be incorporated first, but it may not start the activity until the permit is granted.
The permit is personal and local at the same time: it is granted to the company through one named manager, for a defined activity, at a real place of business in Luxembourg. Change any of the three and the permit must follow.
Trading and services
General commerce, IT and consulting, e-commerce, real estate, crafts, accountants, architects, engineers, domiciliation agents.
Holding and regulated sectors
Pure holding companies; banks and funds under the CSSF; lawyers, doctors and auditors under their own laws.
Stricter and simpler
Online permits with a code to display, a real link between manager and company, new integrity breaches.
Which activity, which conditions
| Activity | What the manager needs |
|---|---|
| General commerce, services, IT, consulting | Integrity only; no qualification since 2018 |
| Real estate agent | House of Training course or 3 years managing a real estate business, plus professional liability insurance |
| Property developer, property manager | Separate permits with their own conditions |
| Craft, List A | Master craftsman certificate, or a relevant degree and experience |
| Craft, List B | A lower vocational qualification |
| Craft, List C (photography, tattoo, graphic design) | Integrity only, since 2023 |
| Expert-comptable | Degree, 3 years of practice, aptitude test and registration with the OEC |
| Architect, consulting engineer | Master's degree and 2 years of practice |
| Since 2023 also listed | Real estate introducers, coworking operators, short-stay accommodation, vehicle trade, food retail, high-value goods |
Foreign diplomas must be recognised or registered in Luxembourg before they count. Start that early: it is the most common reason craft and liberal permits are delayed.
The three conditions every permit tests
- A real establishment. Suitable premises with the equipment the activity needs, where the business is managed and its records are kept. The law is explicit: a domiciliation under the 1999 law is not an establishment. A dedicated room or desk in a business centre is usually argued; a hot desk is risky.
- A manager with a real link. Since 2023 the permit holder must be the owner or a manager registered at the RCS, who runs the business day to day and is regularly present. Residence in Luxembourg is not required; a straw manager is a ground for refusal and a criminal offence.
- Integrity. Checked for the manager, majority shareholders and anyone with significant influence, over ten years: tax or social debts in a bankruptcy, false statements, unfiled accounts or tax returns, unregistered beneficial owners, relevant convictions.
Luxembourg does not license companies. It licenses a person, running a business, from a place. Get those three right and the permit is paperwork.
Will your permit go through?
Answer five questions and see the likely outcome.
Will your permit go through?
Five questions. You see the permit you need, the documents, and what would stop it.
From application to the code on your invoices
- Prepare the fileManager's ID, Luxembourg criminal record extract, and if the manager has lived in Luxembourg for less than ten years, extracts from every country of residence in that period plus a notarised non-bankruptcy declaration. Qualification proofs, the lease, the articles or RCS extract.
- File onlineOn MyGuichet.lu with LuxTrust or eID, or by post. EUR 50 stamp duty.
- Wait for the decisionAcknowledgment within 15 days; decision within 3 months of a complete file, extendable by one month. No answer in time means the permit is granted. In practice, two to eight weeks.
- Display itThe permit comes as a code that must appear on invoices, quotes, letters, emails, the website and the shopfront.
- Keep it currentReport a new address, branch or manager's home address within one month. A new activity or a new qualifying manager needs a new permit.
Why permits are refused, and what trading without one costs
| Common reason for refusal or delay | How to avoid it |
|---|---|
| Only a domiciliation address | Lease a dedicated office or room before filing |
| A nominee manager | Appoint someone who really runs the business |
| Integrity issues at a shareholder | Check all significant shareholders before filing |
| Foreign diplomas not recognised | Apply for recognition first |
| Missing foreign criminal records | Order extracts from every country of the last ten years |
| Incomplete file | The three-month clock only starts once the file is complete |
Trading without a permit is a criminal offence: fines of up to EUR 250,000 for a company, and the court can close the business. The permit also lapses after two years of inactivity or if the manager's change of address is not reported within a month.
Incorporate first if you like, but do not start without it.
The law says so in as many words.
Registered at the RCS, running the business, regularly present.
Silence after a complete file means yes.