How to obtain a business permit
Step-by-step instructions on how to complete all necessary documents.
With some exceptions, any economic activity carried out on a regular basis requires prior authorization to conduct business. We will review the basic requirements and procedures for obtaining a permit.
Up to 4 monthsAs mentioned above, a business license is required for almost all entrepreneurs. However, it is still worth mentioning the specific legal requirements.
A business permit is definitely required if you or your company is engaged in any of the following types of business:
- Commercial activities. This includes trade, industry, transport, services, HORECA (hotels and restaurants) and others.
- Craft activities. Handicraft activities include not only handmade goods, but also entertainment, works of art (created for sale), and so on.
- Authorization may also be required for liberal professions.
There are some exceptions to the general rule. Before discussing them, we recommend that you check the official list of free professions, as the exceptions are often related to them.
Self-employed sales agents
Lawyers, doctors, dentists, veterinarians and auditors
Intellectual service providers
Merchants
EU enterprises
Third-country nationals
Journalists and authors
School projects
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In addition, the following requirements must be met in order to obtain a business license:
In order to start a business in Luxembourg, an entrepreneur or a company must prove that its activities are honest and that future clients and counterparties will be protected. For this purpose, it is necessary to fill in a declaration of honour.
Qualifications must be relevant to the proposed position. Confirmation is required for:
- Members of the liberal professions who require a business license.
- Artisans who are not listed as C.
A business permit can only be obtained if there is a physical facility in the Grand Duchy that is part of the infrastructure and meets the goals and objectives of the business.
The business owner must be physically present at the business at all times to effectively manage the business and must also be directly involved in the activities being conducted.
The permit applicant must be in good standing with the tax authorities, both in their current business and in previous businesses where they have worked or managed.
Last but not least, the company's Articles of Association must be registered with the Registrar of Trades and Companies (RCS).
To obtain a business permit, you must fill out an application form. It is preferable to do this on the MyGuichet portal, as the system will give you hints and allow you to correct any fields you have filled in incorrectly. In addition, the electronic wizard will determine the list of additional documents.
If you wish to prepare additional documents in advance, please note that the list depends on the type of activity and the period of residence in Luxembourg. You can customize the display by using the filters at the top of this guide.
Once all the documents have been collected, the application can be sent. If you filled it out on the MyGuichet website, there should be no problem. If you prefer the printed version, you should mail it with all the documents to the SME Office.
The application, if properly completed and submitted with all required documentation, will be processed for up to 3 months. During this time, you may receive a positive or negative response.
If the decision is positive, you may proceed with your business activities. You may appeal the denial within the legal framework and time limits. A denial is considered an administrative decision, so both informal and judicial remedies are available.
If you don't receive a response within 3 months, it automatically means approval.
The completed permit will be sent to you online via the MyGuichet platform.
The permit includes a bar code that must be included on letters, emails, websites, proposals, invoices, and window displays at all retail locations, as well as on signage that must be posted at all construction sites.
A business permit that has already been obtained can easily be revoked. There is a whole list of offenses that will lead to this:
- If the owner does not report a change of residence within 1 month.
- If the activity has not been conducted for more than 2 years from the date of issuance of the permit.
- If the applicant has voluntarily ceased operations for more than 2 years.
- If the business has been liquidated.
- If the business is bankrupt.
- If the applicant has lost business integrity.
- If there are no guarantees for the package holiday and associated travel arrangements.
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The licensee is also required to notify the regulatory authorities in a timely manner in the following cases
- If there is a change or expansion of the company's facilities.
- If the company has a change in the director who has submitted the qualifications and declaration of honor.
- If the company opens a branch office.
- If the company moves. In this case, a new lease agreement is required.
- If the company opens or closes a retail store.
Frequently Asked Questions (FAQ)
Do I need a lot of documents to obtain a permit?
Can I obtain a permit after bankruptcy?
What is the best way to apply?
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