Business permit in Luxembourg: conditions, costs and application.

Can an overseas-based manager hold a Luxembourg business licence?

The manager's place of residence does not replace the effective-management test. The authority assesses the physical presence needed for permanent day-to-day management, suitable premises in Luxembourg, professional good repute and qualifications where required. A nominal appointment or merely providing an address does not establish compliant management.

What to check

1. Actual activity : Determine the licensed category and any qualification or experience requirements.
2. Management substance : Document who takes decisions and genuinely manages day-to-day activities in Luxembourg.
3. Evidence for filing : Prepare mandate, premises, professional repute and relevant tax/social compliance documents.

Expected output: a pre-application refusal-risk review and an evidence checklist.

Business licence conditions: Guichet.lu

Who needs a Luxembourg business permit?

A business or self-employed person establishing a Luxembourg operation in an activity subject to authorisation must obtain the permit before starting that activity. Choosing a SARL, SARL-S or sole trader structure does not remove the need to check the entry requirements.

Some activities fall under other regimes or exemptions. Temporary cross-border services should not automatically be treated as a permanent establishment. Identify the services actually sold and where they will be performed before choosing the procedure.

What conditions must the business and manager meet?

Professional integrity: provide evidence of the manager's circumstances and relevant background. Compliance with tax and business obligations is also assessed.

Qualifications, where required: show that the diploma, training or professional experience meets the requirements for the particular activity. Craft trades and commercial activities do not all follow the same rules.

A fixed establishment: have physical premises in Luxembourg suited to the nature and scale of the activity. A registered-office address alone does not establish compliance.

Effective and permanent management: the manager must genuinely run day-to-day operations, with the necessary physical presence and an effective connection to the business. Living abroad does not remove these requirements; name-lending is prohibited.

How do you apply through MyGuichet?

You may apply directly through your professional MyGuichet eSpace, provide the requested evidence and pay the official stamp duty. Hiring an accounting firm is optional. The official procedure also allows applications by post.

Our role is to check the consistency of the application, prepare the supporting documents, submit under the agreed mandate and monitor exchanges with the authority. Sworn translations, overseas certificates or recognition of qualifications may require separate work: the quotation identifies the scope and disbursements.

Consult the official application procedure and forms on Guichet.lu.

How long does it take to obtain a business permit?

Guichet.lu states that applications are normally processed within three months of receipt of the complete file. Gathering documents, obtaining certificates and arranging translations take additional time.

The official guidance provides for tacit authorisation if no response is received by the end of that period. Before relying on it, verify when the file became complete, the correspondence received and any other applicable formalities. Initial submission alone does not authorise the activity.

How do the permit, RCS, VAT and CCSS fit together?

Prepare the permit alongside your Luxembourg company formation. The sequence depends on the legal form, including the specific steps for a SARL-S. For a company, final issuance requires the articles to be filed with the RCS; registration and the business permit remain distinct formalities.

Coordinate the relevant next steps: RBE, VAT registration, CCSS registration or declarations and, if hiring employees, payroll setup. A business permit does not replace operating permissions or other sector requirements that may apply to the premises and activity.

Incomplete or rejected application: what should you fix?

Match each request from the Ministry to specific evidence of integrity, qualifications, premises or effective management. Illustrative example: an overseas-based manager with only a mailing address needs to document their actual responsibilities, availability and operational resources in Luxembourg.

A request for additional documents differs from a formal refusal. If the application is refused, review the reasons and the appeal routes and deadlines in the decision; a lawyer may be required for an appeal. Our preparation of the application does not guarantee approval.

New manager or new premises: do you need a new permit?

Replacing the manager whose qualifications and integrity underpin the permit, or changing or extending the company's objects, requires a new authorisation under the official procedure. An RCS update does not automatically amend the permit.

A change of operating premises or of the manager's usual residence must be notified to the competent General Directorate within one month. For other changes, consult the amendments and mandatory notifications in the Guichet.lu guidance.

Which application guidance applies to your sector?

Trade and services: see our guides for e-commerce, IT consulting and platform delivery riders. Light goods transport needs a separate assessment of the vehicles and routes; a 3.5-tonne threshold alone does not resolve every requirement.

Construction and craft trades: see construction, roofing, zinc and sheet metal work, electrical work, heating and plumbing, carpentry and joinery, painting and plastering, tiling and landscaping.

Other activities: see cleaning, hair salons, beauty salons, bakeries, restaurants and HORECA and real estate agents. Each guide sets out the engagement and the points to check.

How much does a Luxembourg business permit cost?

The official stamp duty is EUR 50. It is paid to the administration and is separate from our professional fees. You may file directly; our assistance is an optional service charged separately.

Our published fees start at EUR 650 excluding VAT, depending on the activity: EUR 750 for IT consulting or e-commerce and EUR 1,250 for the relevant qualified trades, all excluding VAT. Any translations, notarial costs and other disbursements are identified in the quotation. See our fees by activity.