Special Permits and Licenses for Trading Companies

Starting a business in Luxembourg implies several stages and for some activities, the last one is obtaining a special license or permit. These operations are usually related to specific industries and are governed by certain laws.

 

Below, our lawyers in Luxembourg explain the conditions for obtaining business permits and licenses in the Grand Duchy. Should you open a company in an industry that requires this step, feel free to contact us for support.

 

The application procedure for obtaining a business permit in Luxembourg 

 

• the professional qualification documents providing the fact that the entity is allowed to perform that activity, 
• the documents which attest the professional integrity, a copy of an ID, proof of payment of the stamp duty (either a tax stamp or a proof of payment deposited in a specific account) 
• a draft of the articles of association if the entity is a company. 

• self-employed individuals: for performing trade activities;
• lawyers, doctors, dentists, statutory auditors: these are liberal professions that may be subject to additional laws and requirements;
• craftspeople and those who sell their own products: are not required to have a business permit to sell their products but they must obtain this document if they wish to sell the items in fairs and markets.

 

Companies in Luxembourg will need to obtain certain permits for trade and other activities after they are incorporated. Most commercial, craft or certain professions in Luxembourg are subject to a prior right of establishment. The business permit is required from any person or entity wishing to conduct a business (trade, transport, catering), artisanal activity, industrial activity as well as for the exercise of certain professions (architect, engineer, accountant, economic Council, patent attorney, surveyor). 

 

A license is required for the business permit carriers in the following cases: a change or extension of the corporate purpose, change the company manager on which the professional qualification transfer of a business from one municipality to another, when creating a branch.

 

Change of the legal form and / or the name of a legal entity do not require a new license but need to be notified to the Minister within one month after the change in question.

 

Artisans and manufacturers need to submit an application for receiving a business permit for skilled craftsmen. The application for this type of business is submitted to the General Directorate for SMEs and Entrepreneurship. 

 

 

The business permit is granted to individuals who meet the dual requirement of good repute and professional qualifications and if the applicant is a corporate body, its officer or officers must meet this dual requirement. The repute is evaluated on the basis of the criminal record and all evidence provided by the administrative investigation while the qualification is assessed using the diplomas, certificates of course attendance, certificates of affiliation to social security and in the case of foreign companies, the certificates issued by the Member States of the European Union.

 

There are several exceptions applicable in certain conditions when the Ministry may exempt the applicant to prove their qualification when it comes to the opening of a small local trade if it proves that is conducted by one person assisted by the family members.

 

The request for a business permit can be made at the Chamber of Commerce trough the one stop shop initialized by it or my mail to the Department of Small and Medium Sized Businesses.

 

If the application is submitted online, the system will provide all the requirements for documents according to the candidate’s profile. A pre-filled business permit application form is generated in the first instance, followed by a detailed list of all the documents required for registration. The pre-filled business permit application form must be signed electronically and validated and re-send in the system.

 

After that, a pre-filled affiliation form to the Social Security administration form is released and a pre-filled VAT registration form which must be signed and submitted via the one stop shop or the traditional post office.

 

Industries that require special licenses and permits in Luxembourg

• craft activities such food, fashion, construction, mechanical engineering, audiovisual, entertainment, art, etc.);
• certain liberal professions that are primarily intellectual in character;
• commercial activities such as trade, HORECA (hotel, restaurant and café), transportation, industry, etc.;
• special industries such as telecommunications, finances, banking, investment, investment management, and insurance are subject to specific laws and special licensing requirements.

Special business permits for foreign citizens/companies with operations in Luxembourg

Requirements when applying for a Luxembourg business license

• they must have professional integrity;
• they must also submit evidence of professional competence based on the selected activity;
• compliance with tax and business requirements: regardless of whether the business activities were carried out in their own name or through a company, the manager must not have evaded tax or business obligations in the past or at the moment;
• they must have a legal establishment in Luxembourg.

 

Our lawyers in Luxembourg invite you to watch a video about the mandatory permits and licenses:

 

 

According to recent data centralized by Statista.com, at the level of 2022:

 

• there were about 38,400 small and medium-sized companies operating in non-financial sectors;
• most of them were micro enterprises with less than 10 employees;
• the number of medium-sized businesses stood at 796.

If you need to obtain permits and licenses for your business in other countries, such as Georgia or Russia, you may contact our local lawyers.