Luxembourg Business Permit Law of 2 September 2011 in English
The amended Law of 2 September 2011 regulating access to the professions of craftsman, trader and industrialist and to certain liberal professions: the law behind the autorisation d’établissement, as consolidated on 1 September 2023. Full English translation with the official French under every paragraph, including the lists of craft trades.
Card
- Official title
- Loi modifiée du 2 septembre 2011 réglementant l’accès aux professions d’artisan, de commerçant, d’industriel ainsi qu’à certaines professions libérales
- In English
- Law of 2 September 2011 regulating access to the professions of craftsman, trader and industrialist and to certain liberal professions, as amended (the “Business Permit Law”)
- Published
- Mémorial A n° 198 of 22 September 2011
- Version translated
- Consolidated text applicable from 1 September 2023, as last amended by the Law of 26 July 2023
- Permits issued by
- The Minister responsible for the Middle Classes (Classes moyennes), online through the State’s portal (MyGuichet.lu)
- Replaces
- Law of 28 December 1988 on the same subject, repealed by Art. 46
- Authentic language
- French
- Official source
- legilux.public.lu
The text in 3 parts
Scope and definitions, the manager, the fixed place of business, professional integrity and the second chance after bankruptcy, and the qualifications for trade, crafts, hospitality, real estate and the liberal professions. 32 articles.
Arts. 28 to 47Procedure, data, transfer of the business and penaltiesApplying for the permit, changes that need a new permit, the provisional permit, the three-month time limit and tacit approval, data exchanges, cross-border services, and criminal penalties. 29 articles.
Annexes 1 to 3Lists A, B and C of craft activitiesThe three annexed lists of craft trades with their fields of activity: List A needs a master craftsman’s certificate, List B a vocational aptitude diploma, List C no qualification (Art. 12). 3 articles.
In short
- Anyone who habitually carries on, for profit, an independent activity in trade, crafts, industry or a regulated liberal profession needs a business permit first (Art. 1).
- The undertaking must name at least one manager (dirigeant): a natural person who is qualified and of good repute, runs the business day to day with a physical presence, is its owner or is registered with the RCS as its agent, and has not evaded tax or social security charges (Art. 4).
- There must be a real fixed place of business in Luxembourg: premises, equipment, the manager’s regular presence and the records on site. A domiciliation address does not count (Art. 5).
- Integrity is checked for the manager, the majority shareholder and anyone with significant influence, over the last ten years (Art. 6). A bankruptcy caused by events outside the person’s control does not block a new permit (Art. 7).
- Ordinary trade needs no qualification (Art. 8). Crafts in List A need a master craftsman’s certificate, List B a vocational aptitude diploma, List C nothing (Art. 12).
- The Minister decides within three months of a complete file; silence means approval (Art. 31). A change of manager or of the business object needs a new permit; a new point of sale or a move must be notified within one month (Art. 28).
- Running a business without a permit, or lending one’s name as a front, is a crime: up to three years’ imprisonment and a fine of up to 125,000 euros, and up to 250,000 euros for companies (Art. 39).
Who it affects
- Founders of a Luxembourg operating company: the permit comes before the first invoice, and the bank will ask for it.
- Foreign groups appointing a Luxembourg manager, who must be genuinely present and registered with the RCS.
- Craft businesses, from bakers to electricians, checking which list their trade is on and what qualification it needs.
- Hospitality, real estate, travel and accounting businesses, which have their own qualification rules.
Key dates
| Date | Event |
|---|---|
| 2 September 2011 | Law adopted, replacing the Law of 28 December 1988 |
| 22 September 2011 | Published in Mémorial A n° 198 |
| 28 October 2016 | Law on the recognition of professional qualifications amends the liberal professions and services provisions |
| 1 July 2018 | Law of 25 April 2018 in force: guarantee for package travel organisers |
| 30 July 2018 | Law of 18 July 2018 in force: amendments to the hospitality, real estate and craft provisions |
| 1 September 2023 | Law of 26 July 2023 in force: wide reform, including the annexed lists of craft trades; date of the version translated |
BCA commentary
Holding companies usually do not need one
The permit is for businesses that trade, make, build or advise: commercial, craft, industrial and certain liberal activities (Art. 1). A pure holding or financing company that only manages its own participations generally does not carry on such an activity, and services supplied only to companies of the same group are exempt (Art. 30). Regulated financial activities fall under the financial sector laws, not this one.
The manager is the whole point
The permit is granted to the undertaking but stands or falls with its manager (Art. 4). The manager must actually run the business from Luxembourg, so a director who visits twice a year will not do. If the manager leaves, the Minister must be told within a month and the business gets a provisional permit while it finds a replacement (Art. 29). A new manager means a new permit, and since 2023 that permit is issued only if the undertaking has no tax or social security debts above the statutory thresholds and is up to date with its tax returns, RCS filings and RBE entry (Art. 28).
Real premises, not a letterbox
The fixed place of business in Art. 5 rules out the domiciliation agent’s address. For many service businesses a small office or a coworking contract is enough, provided the manager is regularly there and the records are kept there.
Crafts and the three lists
Craft trades are grouped in three annexed lists (Annex 1, Annex 2, Annex 3). The list decides the qualification: master craftsman’s certificate for List A, vocational aptitude diploma for List B, none for List C (Art. 12). Equivalent foreign diplomas and experience can be recognised. A manager can run at most two List A or B craft businesses outside one group, unless he holds at least 25% of each (Art. 4bis).
Integrity and the front-person problem
Integrity covers the manager, the majority shareholder and anyone with significant influence (Art. 6). Using a front person, or being one, costs the integrity of everyone involved and is a criminal offence (Art. 39). Unpaid tax and social security debts also count against an applicant, which is why the second-chance rules in Art. 7 to Art. 7ter matter after a failed business.
Amendment history
Amending acts marked in the Legilux consolidation, with the articles they touch. Legilux marks the latest change to each article, so this is the recent history only.
| Act | Articles |
|---|---|
| Law of 28 October 2016 | Arts. 15, 37 |
| Law of 8 March 2017 | Art. 32 |
| Law of 18 July 2018 | Arts. 2, 8, 9, 10, 12, 22, 27, 29, 34, 42bis |
| Law of 26 July 2023 | Arts. 1, 2, 4, 4bis, 5, 7ter, 8, 8septies, 9, 10, 12, 18, 19, 28, 29, 31, 32, 32nonies, 34, 36, 39, 42, 42ter |
Related acts
The S.à r.l.-S, for example, must have an object within this Law. Translated in full.
Luxembourg · RegistersLaw of 19 December 2002 on the RCSThe manager must be registered with the RCS as an agent of the company. Translated in full.
Luxembourg · UBORegister of Beneficial Owners Law (2019)RBE filings must be up to date for a new permit. Translated in full.
BCA EU · GuideThe Luxembourg business permitOur practical note: who needs it, the manager, timing and documents.
BCA EU · ServiceOperating company in LuxembourgSetting up a trading or service company with its business permit.
How to cite
Cite the article and paragraph and link to the paragraph anchor. For example:
Unofficial English translation by BCA EU, for information. Only the French text published in the Mémorial and the Journal officiel du Grand-Duché de Luxembourg has legal force. Article headings are editorial; chapter and section headings are the law’s own. Text checked against the consolidated version applicable from 1 September 2023 on legilux.public.lu on 30 October 2026. This page is not legal or tax advice.
Need a business permit in Luxembourg?
We prepare the application, check the manager’s qualification and integrity file, and line up premises that meet the establishment test. Fixed fee agreed upfront.