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How to obtain a business permit

Step-by-step instructions on how to complete all necessary documents.

Last time updated
26.11.24

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.

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As 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

They are authorized to do business as a merchant. It is important to understand that the employees they employ are exempt from obtaining a permit.

Lawyers, doctors, dentists, veterinarians and auditors

Although these professions are free professions, they are subject to different laws. For example, to work as a doctor or dentist in Luxembourg, you will need a license.

Intellectual service providers

Must apply for a business permit if their occupation is not listed as an available occupation.

Merchants

Provided that they sell what they make, as well as items purchased for non-commercial purposes. Such people are not considered professionals, but they are required to obtain a business license if they want to trade at fairs or have their own website.

EU enterprises

If they provide one-time or temporary services. However, prior notification to the Office of Small and Medium Enterprises is required.

Third-country nationals

If they wish to settle in Luxembourg as a self-employed person, they need to apply for a business permit together with an application for a temporary residence permit.

Journalists and authors

Provided that they are not engaged in self-publishing.

School projects

If they involve commercial activities for educational purposes but do not generate an annual turnover of 35,000 euros or more excluding tax.
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In addition, the following requirements must be met in order to obtain a business license:

Professional integrity
Professional qualification
Establishment in Luxembourg
Effective and permanent management of the business
Compliance with tax and business obligations
Articles of association

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.

Additional Documents for Commercial Activities
Something's missing
Make sure you have all the dociments.
*The mandatory items are marked with red asterisks.
Request for permit + declaration of honour
To be completed on the Guichet website. An example of the declaration of honor can be found in step 1
Certificate of payment of the government fee of 24 euros
A copy of the bank transfer to the account BCEE LU76 0019 5955 4404 7000 du bureau de Diekirch - recette-droits de timbre will suffice. The payment must include the applicant's name, first name and home address and be marked "autorization d'établissement"
Draft articles of association of the company
If registered on the territory of Luxembourg
Copy of diploma/certificate
Or other proof of professional training
Copy of identity card and residence permit
The quality of the photocopy should be as good as possible
Certificate of no criminal record
*If the period of residence is less than 10 years. Bulletin No. 3, recently issued
Certificate of absence of criminal record from other countries
*If the period of residence is less than 10 years. Documentation from all countries where the applicant has lived in the last 10 years is required
Bankruptcy petition (not older than 6 months)
*If residency is less than 10 years. Must include information on all bankruptcies in which the applicant has been involved in any way. The existence of bankruptcies does not automatically mean a denial
Something's missing
Make sure you have all the dociments.
*The mandatory items are marked with red asterisks.

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.
faq

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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We took photos from these sources: bruce mars, Unsplash

Authors: Aleksandr, Kadriia
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