Applying for a business permit

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Large businesses

Self-employed

SMEs

Specific sector

With fees

All professional economic activities are subject to the prior granting of a business permit (autorisation de commerce).

This permit is granted to businesses (professionals operating under their own name or the company) within a 3 month deadline which may be extended by another month under certain conditions, if:

the applicant satisfies the required legal conditions of qualification (when applicable) and professional integrity for the activity concerned;
the business has a fixed physical establishment in Luxembourg (no so-called 'letterbox companies').

Tacit authorisation is granted if no decision is sent within the time allowed.

Who is concerned

A business permit is granted to the business if the applicant satisfies the required legal conditions of qualification and professional integrity. The applicant must:

be the professional operating under their own name if the business is operated by a natural person; or
be a person who has real ties to the business. This person must be:
- an employee of the company; or
- the owner of the company; or
- a partner in the company; or
- a shareholder in the company.

A business permit is required for any person that wishes to engage in the following professional activities as a self-employed person or as a company:

commercial activity (trade, HORECA (hotel, restaurant and café), transports, industry, etc.);
craft activity (food, fashion, construction, mechanical engineering, audiovisual, entertainment, art, etc.);
or certain liberal professions which are mainly intellectual in nature.

Special cases

Self-employed sales agents require a business permit as traders. Their salaried representatives are exempt from any specific permit but must carry out their activity under the cover of a business permit granted to their employer. It is therefore advisable to provide them with proof of their employer’s permit and proof of their recruitment.

Lawyers, physicians, dentists, veterinaries or statutory auditors (réviseurs d'entreprises) exercise liberal professions covered by laws other than those governing the authorisation of establishment.

Providers of intellectual services not included in the list of liberal professions must apply for a business permit for commercial activities and services.

Persons who sell their own products (craftwork, artwork, jam, honey, etc.), recycled items or items they did not purchase for commercial purposes, are not considered to be professionals and are therefore not required to have a business permit. However, they must hold a business permit for commercial activities and services if they wish to participate in fairs and markets or if they are operating a dedicated website to sell their goods online.

EU businesses that supply occasional and temporary services in Luxembourg do not require a business permit. Skilled craftsmen and manufacturers nevertheless have to submit a prior notification to the General Directorate for Small and Medium-Sized Enterprises.

Non-EU nationals who wish to set up in Luxembourg as self-employed persons must submit their business permit application together with their application for an authorisation to stay as a self-employed person. By doing so, they only have to send in a single dossier to the Minister of Immigration who then transfers the business permit section to the General Directorate for Small and Medium-Sized Enterprises.

Prerequisites

The applicant must fulfil the following conditions:

professional integrity;
professional qualification in line with the planned activity:
- for the traders or the trading profession;
- liberal professions requiring a business permit;
- craftsmen;
establishment in Luxembourg; the business permit is only granted if there is a physical installation in Luxembourg that includes an infrastructure suitable for the nature and scale of the concerned activity;
effective and permanent management of the business by the business permit holder who must:
- personally and regularly ensure the effective day-to-day management and direction of the company. In particular, a remote effective domicile may be unfavourable to the applicant. The permanent presence of a third person, even if authorised to commit the business, is not enough to make up for the absence of the business permit holder;
- be connected to the business (as an owner, associate, shareholder or employee of the business).
compliance with tax and business obligations: the business manager must not have evaded business and tax obligations in their previous or current business activities, whether these activities were carried out under their own name or through a company run by said business manager.

The final granting of the business permit requires that the articles of association are filed with the Trade and Companies Register (RCS).

In order to request the permit online via MyGuichet.lu, applicants must have a LuxTrust 'Private' or 'Pro' electronic certificate and be registered on the portal.

Costs

The stamp duty for the issue of a business permit amounts to EUR 24.

If the establishment is moving to another address, the applicant must notify this, free of charge, to the General Directorate for Small and Medium-Sized Enterprises. In this case, the applicant will receive a new business permit free of charge.

How to proceed

Filing an application

The applicant can submit their application for a business permit in 3 ways:

by applying for a business permit themselves online via MyGuichet.lu, using a LuxTrust product.
The system determines which supporting documents need to be attached to the application depending on the information entered by the applicant;
or by sending the business permit application by standard mail or email to the General Directorate for Small and Medium-Sized Enterprises;
or by using the "House of Entrepreneurship – One-Stop Shop" of the Chamber of Commerce or the "Contact Entreprise" service of the Chamber of Skilled Trades and Crafts who will submit the application for them.

Anyone can get help with their business permit application by contacting:

the House of Entrepreneurship – One-Stop Shop of the Chamber of Commerce;
the "Contact Entreprise" team of the Chamber of Skilled Trades and Crafts;
the information desk at the General Directorate for Small and Medium-Sized Enterprises.

Documents to be submitted with the application

The following documents must be attached to the business permit application:

documents attesting to the professional qualifications for the planned activity;
documents attesting to professional integrity;
for citizens of Luxembourg, the European Union, or the European Economic Area (Iceland, Liechtenstein, Norway, Switzerland): a copy of their ID card or passport;
for citizens of third countries: a written confirmation from the Minister responsible for Immigration that the applicant meets all the conditions for obtaining the residence permit applied for;
proof of relationship with the business as an owner, partner, administrator or employee (extract from the RCS, extract from the Register of Beneficial Owners, employment contract, certificate from the Joint Social Security Centre);
proof of payment of stamp duty (droit de chancellerie), in the form of:
- either a tax stamp, value EUR 24, purchased at the Registration Duties, Estates and VAT Authority (AED);
- or the proof of payment of EUR 24 into the IBAN account LU09 1111 7026 5281 0000, BIC code: CCPLLULL of the Diekirch Revenue Office, with the following communication: 'autorisation de commerce'.

Supporting documents may be submitted:

in the form of paper copies (application by post) or as scanned copies in PDF format (application via MyGuichet.lu or email). The General Directorate for Small and Medium-Sized Enterprises may request certified copies or the original documents where needed. Original documents will be returned to applicants upon request;
in German, French or English. Documents in other EU languages may eventually be accepted provided that they have been translated by a sworn translator.

Application processing time

Applications will usually be processed within 3 months from the receipt of the complete application. The absence of a response before the end of the 3-month period is equivalent to a tacit authorisation.

Appeal

A negative decision regarding an application for a business permit is an administrative decision against which the usual means of appeal (informal appeal, judicial appeal) can be used, provided the legal deadlines are complied with.

It is also possible to turn to the Ombudsman.

Issue of the permit

If the business permit is granted, the applicant will be notified by post at the address indicated on the application:

the sole trader (self employed natural person) may then collect their business permit at the Joint Social Security Centre. On this occasion, the entrepreneur can proceed directly with their registration as a self-employed person;
companies (legal persons) receive the business permit by post directly at their registered office.

The business permit takes the form of a card, which should be kept permanently on the operating site and produced on request.

The ministerial authorisation number (business permit number) must be indicated on all letters, mails, e-mails, websites, quotes, invoices, premises and storefronts as well as on the mandatory signs on work sites.

Validity of the permit

The business permit expires:

if it is not used for more than 2 years from its issuance date;
in the event of voluntary cessation of the activity during more than 2 years;
in case of compulsory liquidation;
in case of bankruptcy of the business.

Modifying an existing business permit

The holder of a valid permit must request a new permit in the event of:

change or extension of the company's objects;
change of company director to whom the qualification and professional integrity relates.

Mandatory notifications

The notification can be submitted by post or email. In principle, the General Directorate for Small and Medium-Sized Enterprises must be notified within one month of the following events:

the opening of a branch office;
a change of the company name;
a change of the company's legal structure;
a change of business address.

Obligations of all professionals

Each company must comply with the following throughout their existence:

all requirements with respect to obtaining a business permit;
all laws and regulations with respect to business management.

Sanctions

Businesses without a business permit run the risk of criminal sanctions (imprisonment and fines) and the temporary closure of the establishment.

Forms / Online services

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