Before you issue your first invoice, you need this administrative green light. Here is who needs it, the three conditions to meet, the real procedure on MyGuichet.lu, the cost and timelines, and the pitfalls that stall a file.
In short. The business permit (autorisation d'établissement) is the administrative green light without which no commercial, craft, industrial or liberal activity can start in Luxembourg. It rests on three cumulative conditions: professional qualification, the manager's good repute, and a real establishment in the Grand Duchy. The application is filed on MyGuichet.lu, costs 50 € in chancellery fees and is processed in principle within 3 months, the authorities' silence on a complete file counting as approval.
Many founders discover this step too late, once the company is registered, and find themselves blocked when it's time to issue a first invoice. The business permit in Luxembourg isn't one formality among others: it is what grants the right to trade. Here is who needs it, the three conditions to meet, the real procedure, and the pitfalls that stretch a file.
What is the business permit, and who needs it?
The business permit is issued by the Ministry of the Economy and allows you to carry out a commercial, craft, industrial activity or certain liberal professions in Luxembourg. Without it, trading is prohibited, even if the company is already entered in the Trade and Companies Register (RCS). Its legal basis is the amended law of 2 September 2011 on the right of establishment.
It concerns the sole trader as much as the company. In a company, an identified manager (the director, or a duly mandated executive present in the business) carries the permit: it is their qualification and good repute that are examined, not those of every shareholder. A few activities follow a separate regime and do not go through this permit: healthcare professions, lawyers, architects and other regulated professions have their own approval procedures.
The three conditions to meet
To obtain a business permit in Luxembourg, three cumulative conditions must be met: a professional qualification suited to the activity, the manager's professional good repute, and a real establishment in the Grand Duchy. They are assessed together: a single one missing is enough for the application to be refused.
Professional qualification
Requirements vary widely with the activity. For commerce, industry and the trades on list C, no specific qualification is required: a level of management suffices, sometimes evidenced by a short course. For craft trades on list A (electrician, joiner, plumber, hairdresser, baker, and so on), you generally need a master craftsperson's diploma, a bachelor's degree covering the activity, or a CAP/DAP together with several years of experience in a managerial role. Regulated liberal professions require the corresponding diplomas. The right reflex is to check the exact classification of your activity before building the file, because it sets the level of proof expected.
Professional good repute
Good repute is assessed over the past ten years. The Ministry checks for the absence of convictions incompatible with the activity, fraudulent bankruptcy, and serious breaches of tax and social obligations. A point often missed: in a company, good repute does not concern the manager alone. The shareholder who holds the majority of the shares, and any person able to exert significant influence over management, must also demonstrate their good repute. Leaving out a past bankruptcy, assuming it won't surface, is one of the mistakes that sink a file.
A real establishment in Luxembourg
The business must have a real establishment in the Grand Duchy: a fixed installation suited to the activity, from which management is actually conducted. The manager who carries the permit must ensure real and permanent management, not act as a mere figurehead. An address used purely for domiciliation, with no means or decisions on site, does not satisfy this condition and weakens the whole structure. It is the same substance requirement that resurfaces in the company's tax review.
How to file the application, step by step
The application is prepared in parallel with forming the company, since its number later appears on commercial documents and in the registration file. The path is fairly stable.
- Gather the documents. Proof of qualification (diplomas, certificates, experience attestations), evidence of good repute (criminal record extract, sworn statement of no bankruptcy), and details of the planned establishment.
- File the application. Filing is done online on MyGuichet.lu with a LuxTrust product, or by post with the General Directorate for Small and Medium-Sized Enterprises of the Ministry of the Economy.
- Pay the chancellery fees of 50 €, a condition for the file to be admissible.
- Let the authorities review it. The Ministry checks the three conditions and may request additional documents, which suspends the timeline.
- Receive the decision. Absent a reply at the end of the review period, and for a complete file, silence counts as a tacit permit.
- Use the permit. The permit number appears on your invoices, quotes and website, and is included in the RCS registration.
How much it costs and how long it takes
The direct cost is modest; the real stakes are the timeline and the completeness of the file. Here are the orders of magnitude to keep in mind.
| Item | Benchmark | Worth knowing |
|---|---|---|
| Chancellery fees | 50 € | Paid for the file to be admissible |
| Review period | around 3 months | Silence on a complete file counts as a tacit permit |
| Request for further documents | variable | Suspends the timeline until the documents arrive |
| Validity | as long as the conditions hold | To be amended on a change of activity or manager |
These benchmarks apply at the time of writing (June 2026). Amounts and timelines change and should be checked against the official source on the day you file; we inform here, without replacing personalised advice.
The pitfalls that delay or block a file
Most refusals and delays come not from a lack of merit, but from a poorly built file. Four causes recur. First, poorly documented qualification: a foreign diploma not recognised, or experience claimed without an employer's attestation, and the authorities cannot decide. Then good repute presented by halves: hiding a bankruptcy or a tax dispute backfires on the applicant. A façade establishment that does not hold up under serious scrutiny. Finally, a poorly defined activity: each declared activity must match an appropriate permit, and an overly vague object forces the file to be redone.
This is precisely where local support saves weeks. The permit is only one brick of the formation path: it interlocks with the legal form, the capital and the accounting set-up. If you are forming a company, see our guide to setting up a SARL in Luxembourg, or its reduced-capital variant, the SARL-S. And if you run the company from abroad, the conditions specific to non-resident managers are detailed in setting up a company in Luxembourg as a non-resident.
Frequently asked questions
How much does a business permit cost in Luxembourg?
Filing the application requires paying 50 € in chancellery fees. That is the direct cost; on top of it may come the fees for support in building a complete file and avoiding the back-and-forth that stretches the timeline.
How long does it take to obtain?
In principle around 3 months. For a complete file, the absence of a reply at the end of the review counts as a tacit permit. A request for further documents suspends this period, which is why it pays to file a solid file from the start.
Is the permit needed before or after forming the company?
It is prepared in parallel with incorporation. Trading cannot start without it, and its number appears in the RCS registration file. In practice, it is often finalised around registration.
Can a cross-border worker or non-resident obtain it?
Yes. The permit rests on the manager's qualification and good repute, not on their place of residence. A Belgian, French or German cross-border worker who meets these conditions obtains it like a resident, provided the company has a real establishment in Luxembourg.
Which activities are exempt from a business permit?
Regulated professions with their own regime (healthcare, lawyers, architects, and so on) follow a separate approval procedure. Some activities without a fixed establishment in Luxembourg also fall under a specific framework. When in doubt, check the classification of the activity before taking any steps.
Why Advena?
- Formation, finance and digital under one roof: the permit, the legal form and the accounting set-up are handled together, not across three providers.
- Luxembourg grounding: qualification, good repute, real establishment and the RCS approached with real local knowledge.
- Clear fixed prices, no hourly billing: you know what you pay before you start.
- Direct access to the founders: the partners support you, not a junior.
Read next: Setting up a SARL in Luxembourg: steps, capital and procedures · SARL-S in Luxembourg: setting up a company with reduced capital · Setting up a company in Luxembourg as a non-resident.
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