Who needs one, on what conditions, how to apply on MyGuichet.lu and for how much: the full picture on the document that gates every business start-up.
In short. In Luxembourg, almost any economic activity carried out on a regular basis requires a business permit (autorisation d'établissement) before it can begin. It is granted by the Ministry of the Economy to a company that meets four conditions: professional integrity, the relevant qualification where required, a physical establishment on the ground, and effective and permanent management by the director. The application is made online on MyGuichet.lu, costs €50 in chancellery fees, and the administration answers in principle within 3 months. If there is no reply within that period, the permit is deemed granted.
It is the first piece of the incorporation file, and it is also the one that most often holds up a founder's timeline. You sign the articles, open an account, choose a name, and then discover that nothing can legally start until this document is in hand. Here, without jargon, is who needs one, on what conditions, how to go about it and for how much. The regulatory points below are drawn from Guichet.lu and the Law of 2 September 2011, consulted in August 2026.
What is the business permit, and who needs one?
The business permit, sometimes called the "right of establishment", is the authorisation that lets you legally carry out an economic activity in Luxembourg. Save for exceptions, it is required as soon as an activity is pursued on a regular basis, whether you set up as a sole trader or through a company.
Three broad families of activity are concerned: commercial activities (retail, hospitality, transport, industry), craft activities (food, fashion, construction, mechanics, trades) and certain liberal professions of a predominantly intellectual nature. The Ministry of the Economy publishes the full list of activities subject to a permit. A few fall outside it: a journalist, an author who is not self-publishing, or a school project with an educational purpose that does not exceed €35,000 of annual turnover excluding tax.
Some regulated liberal professions, such as lawyer, doctor, dentist, vet or statutory auditor, fall under laws other than the right-of-establishment law and follow their own access regime.
The conditions to obtain one
The permit is granted to the company where the director meets the conditions set by the Law of 2 September 2011. They come down to four points, each of which is checked.
- Professional integrity. The director's past conduct must not undermine their reliability. An extract from the criminal record and, in some cases, a declaration of honour are required.
- Professional qualification, where required. It is assessed through a diploma, a master craftsman's certificate or recognised professional experience, depending on the activity. Part of the commercial trades and certain craft activities on list C are exempt.
- Establishment in Luxembourg. The permit is only granted where there is, on the ground, a physical set-up suited to the nature and scale of the activity. A mere letterbox address will not do.
- Effective and permanent management. The permit holder must, through a real physical presence, ensure the day-to-day management of the business and have a genuine link with it (owner or authorised representative). The front-man arrangement is exactly what this condition is designed to rule out.
To this is added a compliance requirement: the director must not have evaded their tax and social obligations in the past. Finally, the definitive grant of the permit assumes the company's registration with the Trade and Companies Register (RCS). Permit and registration therefore move forward together.
How do you apply, and for how much?
The recommended route is the online application, from the professional space on MyGuichet.lu, using a LuxTrust certificate. The benefit is concrete: you pay the chancellery fee directly online, you receive the administration's correspondence in a secure mailbox, and the permit is delivered in that same space. A postal application remains possible, with proof of payment enclosed. Based on the information entered, the system determines which supporting documents to attach.
The cost is fixed: the chancellery fees amount to €50, paid online by card or Payconiq, or by tax stamp and transfer for a paper application. There are no fees proportional to turnover or to the type of company.
| Item | What to remember |
|---|---|
| Where | Online on MyGuichet.lu (LuxTrust) or by post |
| Cost | €50 in chancellery fees |
| Timeframe | In principle 3 months after receipt of a complete file |
| Silence from the administration | Counts as a permit granted at the end of the 3 months |
| Authority | Ministry of the Economy, Directorate-General for SMEs, crafts and retail |
The least-known point is the silence rule: once the three-month period passes without a reply on a complete file, the permit is deemed granted. "Complete file" is the nuance that matters, because a missing document puts the clock on hold. This is why a file put together correctly first time saves weeks.
Once the permit is granted
The paperwork does not end at delivery. A two-dimensional barcode is assigned to each permit. It must appear on your letters, emails, quotes, invoices, website, shopfronts and site boards. It is also through the public permit-search tool that your clients or partners can check that your business is in order.
Then comes a series of steps with other bodies: affiliation to social security at the Joint Social Security Centre (CCSS), registration with the Chamber of Skilled Trades and Crafts or the Chamber of Commerce depending on the activity, and above all the initial declaration to the Registration Duties, Estates and VAT Authority to obtain your VAT number. That last point has its own tight calendar, which we detail in our guide to a company's accounting in year one.
Finally, the permit is not permanent. It lapses if the activity is unused or ceases for more than two years, on bankruptcy, court-ordered winding-up or loss of professional integrity. Certain changes (the director's residence, the place of business, the creation of a branch) must be notified within one month. A change of director or of corporate object, meanwhile, means applying for a new permit.
Where the permit fits into setting up a business
The business permit is not a standalone formality: it is a link in a precise chain. For a capital company, it is applied for alongside incorporation, and its number must appear in the RCS registration file. For a simplified SARL (SARL-S), whose whole purpose is fast access to activity, the permit is still a mandatory prerequisite before registration. And for a classic SARL, it is added to the notary step and the capital deposit.
In other words, the legal form you choose changes the mechanics of incorporation, but not the permit requirement. The right instinct is to launch the application early, at the same time as drafting the articles, rather than discovering it as a last-minute obstacle.
Putting together your incorporation file and want to line up permit, RCS, VAT and accounting cleanly? We map it out with you.
Plan my incorporationWhat happens if you trade without a permit
This is not a theoretical risk. Without a permit, the law provides for criminal penalties, ranging from fines to imprisonment, as well as the temporary closure of the business. Beyond the penalty, trading without a permit undermines everything else: a bank account opening refused, contracts open to challenge, no clean way to invoice. It is never worth it, all the more so as the entry cost comes down to €50 and a well-prepared file.
Our role: from permit to books kept
At Advena, we do not issue the permit; the Ministry of the Economy does. What we do is help prepare a clean file, line it up with the RCS registration and the initial VAT declaration, then take over on what comes right after: keeping the books. Too many businesses obtain their permit, start trading, and let the accounting pile up until the first year-end.
We keep your books in the Odoo we configure for the PCN 2020 chart of accounts, Luxembourg VAT and the FAIA export, from €325 per month, all in. Your bank feeds and invoices flow into the accounts continuously, and you read your position in real time rather than at closing. The detail of this approach is in our guide to an accounting firm for an SME.
Let us be plain: our model is built for the Luxembourg SME of 1 to 50 employees that wants to steer its business. If your project involves a complex multi-jurisdiction structure, or if you simply want the lowest price to drop off a box of invoices once a year, another kind of support will suit you better. We inform on the rules and point you in the right direction; we do not replace legal advice on your particular situation.
Permit in hand and business getting under way? Don't let the accounting fall behind from month one.
Talk about my accountingFrequently asked questions
How much does a business permit cost in Luxembourg?
The chancellery fees amount to €50, paid online during the application on MyGuichet.lu, or by tax stamp and transfer for a postal application. There are no additional fees proportional to the activity.
How long does it take to obtain the permit?
The administration processes the file in principle within three months of receiving a complete application. If there is no reply at the end of that period, the permit is deemed granted.
Do you need a professional qualification to obtain one?
It depends on the activity. A qualification (diploma, master craftsman's certificate or recognised experience) is required for the liberal professions concerned and most craft trades, but some commercial activities and the list C trades are exempt. Professional integrity, on the other hand, is always required.
Can you form a company before you have the permit?
The permit application and the incorporation move forward in parallel, but the definitive grant of the permit assumes the company's registration with the RCS, and its number must appear in the file. In practice, both are prepared together.
How can you check that a business holds a permit?
The Ministry of the Economy provides a public tool to search business permits, which lets you find a company's permit number and confirm that it is in order.
Read more
- Setting up a SARL in Luxembourg: steps, capital and procedures
- The simplified SARL (SARL-S) in Luxembourg: capital, accounting and cost
- Starting a company in Luxembourg: accounting in year one
- A Luxembourg SME's accounting obligations: the full list
- Accounting firm in Luxembourg: the complete guide for an SME
Why Advena?
We are the Luxembourg accounting firm that keeps your books inside the management tool it deployed for you. From preparing the incorporation file to keeping the books in real time, everything is tracked in one place, on a fee announced up front from €325 per month, with a named account manager. We inform on the rules and line them up with your accounting obligations; we point you to specialist advice when your file calls for it.
Tell us where your project stands and we will tell you what is left to do, and what it costs.
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