What to Do After You Get Your Business Permit in Luxembourg
Your business permit in Luxembourg (autorisation d’établissement) has just arrived. What next? In Luxembourg, three public bodies need to know you are now self-employed: CCSS (social security), AED (VAT), and ACD (income tax). Two require active declarations from you; one is handled mostly behind the scenes.
| Step | Body | Action | Deadline |
|---|---|---|---|
| 1 | CCSS | Submit declaration of entry (declaration d’entree) | 8 days from activity start |
| 2 | AED | Submit initial VAT declaration (in all cases — request franchise or normal regime) | 15 days from activity start |
| 3 | ACD | Tax file opens on the back of permit + CCSS | First Form 100 due 31 Dec of year N+1 |
| 4 | Bank | Open a separate business account | Recommended, not mandatory |
| 5 | Activity-specific | Professional body, sector authority, or extra licence | Depends on activity |
| 6 | Start-up aid | Check if you qualify for the €12,000 aide à la primo-création (first-time entrepreneur in commerce/craft) | 6 months from permit issuance |
The Ministry of Economy notifies CCSS and some other administrations when your permit is issued, but that does not replace your own declarations. You still have to file them yourself — the deadlines below start from the day you actually start trading.
Step 1: Affiliate with CCSS (within 8 days)
CCSS (Centre commun de la securite sociale) handles health insurance, pension, accident, dependency, and mutual insurance. Self-employed people pay both the employer and the employee share.
What to do:
- Submit the “declaration of entry for self-employed workers” (declaration d’entree)
- If you applied for your business permit via MyGuichet.lu, a pre-filled form is automatically generated in your professional eSpace — review and submit it
- Otherwise, download the declaration d’entree form from the CCSS website and send it by post
What happens next: Within about a week, CCSS sends you a confirmation letter by post with your 13-digit national ID number (matricule) and confirms your health insurance fund (usually CNS). Your first monthly invoice follows shortly after.
CCSS starts billing from day 1 of your activity — not day 1 of income. If you haven’t earned a cent yet, you still owe roughly 680–750 EUR/month at the minimum-wage base. Several alternative contribution paths can reduce this; see below.
Two follow-ups you should know about:
MDE — sick-leave coverage. As a self-employed person you have no sick pay by default. The Mutualite des Employeurs (MDE) covers your income from day 1 of illness. Apply within 3 months of CCSS affiliation for retroactive day-1 cover; miss the window and affiliation only takes effect the following 1 January. Form: download from the MDE forms page.
Choose your contribution path. CCSS bills you on a default base, but several alternative paths exist. Each needs its own form:
| # | Path | When it fits | Form |
|---|---|---|---|
| 1 | Standard full-time | Default — no action needed | None |
| 2 | Reduced pension (low income) | You earn less than the minimum wage | Demande de réduction des cotisations à titre indépendant |
| 3 | Side activity (activite accessoire) | You have another main CCSS affiliation (salaried job, another self-employed main, or pension) | Application for activite accessoire |
| 4 | Full exemption (low income) | Income below 1/3 of the minimum wage | Demande de dispense d’affiliation pour cause de revenu insignifiant |
| 5 | Partial exemption (occasional activity) | Non-habitual activity, under 3 months per calendar year — accident insurance still mandatory | Demande de dispense pour activite occasionnelle |
For the full picture of how each scenario works and what coverage you get, see our deep-dive on CCSS for self-employed in Luxembourg.
Step 2: Register with AED for VAT (within 15 days)
AED (Administration de l’Enregistrement, des Domaines et de la TVA) handles VAT. Filing the initial VAT declaration (declaration initiale) is mandatory in all cases within 15 days of starting your activity — even if your turnover will stay below the 50,000 EUR franchise threshold. The declaration is how you tell AED about your activity and request the regime that will apply to you: franchise or normal.
You file the initial declaration via the Inscription à la TVA procedure on Guichet.lu — online through MyGuichet or by post. The form has a dedicated section where you indicate which regime you are requesting.
Which regime do you request?
| Your situation | Which regime |
|---|---|
| Domestic turnover under 50,000 EUR and no cross-border activity | You can request the national franchise regime (art. 57bis Loi TVA). You don’t charge output VAT and you don’t file periodic returns. You still file the initial declaration to request the franchise, you remain identified by AED, and you notify AED of your annual turnover before 1 March each year |
| Domestic turnover over 50,000 EUR | Normal regime is mandatory. You charge VAT and file periodic VAT returns (monthly, quarterly, or annually depending on turnover) |
| Cross-border B2B services (you supply or receive services under reverse-charge) | VAT identification is mandatory from the first euro, regardless of turnover. You may receive an LU VAT number with an EX suffix for cross-border purposes even if you remain under franchise domestically |
| Intra-EU acquisitions of goods over 10,000 EUR/year (PBRD threshold) | VAT identification becomes mandatory once cumulative acquisitions exceed the threshold |
| Below 50,000 EUR but you want to charge VAT and reclaim input VAT | Optional — you can opt out of the franchise via the initial declaration. Lock-in: opting out commits you to the normal regime for at least one full calendar year, even if your turnover later drops below the threshold |
What to do (in all cases):
- File the initial declaration via Inscription à la TVA on Guichet.lu — online via MyGuichet or on paper
- Information required: identity, business address, IBAN + BIC, activity start date, estimated annual turnover, and the regime you request (franchise or normal)
- Processing time is variable — AED does not publish a target
What happens after:
- If you’re on the normal regime, you receive a Luxembourg VAT number “LU” + 8 digits and start filing periodic VAT returns
- If you’re on the franchise regime, you don’t charge VAT and don’t file periodic returns. Each year, notify AED of the previous year’s turnover before 1 March
For when VAT applies and which regime fits you, see what taxes do self-employed pay in Luxembourg and 100,000 EUR EU VAT franchise for small business.
Step 3: Income tax (ACD) — set up, no immediate payment
ACD (Administration des Contributions Directes) is notified through your business permit and CCSS affiliation, and in most cases opens your tax file on the back of these. There is no separate registration deadline.
What happens:
- A tax file is created under your 13-digit national ID matricule
- In your first year of activity there are no immediate tax payments to ACD — neither annual nor advance. You owe nothing until you file your first Form 100
- Your first Form 100 is due by 31 December of the year following your first tax year. The same deadline applies whether you file electronically via MyGuichet, by PDF submission, or on paper
- Form 100 is filed with one of two profit-computation annexes: Form 110 (commercial / craft profit) or Form 152 (receipts-minus-expenses method, common for liberal professions)
- Quarterly advance payments (bulletins d’avance) only begin after ACD has issued your first tax assessment (bulletin d’imposition), typically several months after your first Form 100 is processed. Payment dates once they begin: 10 March, 10 June, 10 September, 10 December
What to do:
- Track your profit from day 1 — keep clean records of income and expenses; you will need them for next year’s Form 100
- Budget for the first tax bill — your first Form 100 may result in a one-off payment of the full year’s tax (no advances yet). Plan cash flow accordingly
- Once your first assessment arrives, advance payments begin automatically
Step 4: Open a business bank account
For sole traders, a dedicated business bank account is not legally required — you can use your personal account. But it is strongly recommended:
- Keeps business and personal finances clearly separate (easier bookkeeping, cleaner tax return)
- Required by some banks if you exceed certain turnover or want a business card, lines of credit, payment terminals
- Signals professionalism to clients and suppliers
Practical tip: Open the account before you send your first invoice. Banks take 1–3 weeks to approve a business account and will ask for your business permit, ID, and a simple activity description. Start this process as soon as your permit arrives — not when the first invoice is due.
Step 5: Activity-specific registrations and authorisations
Once your permit is issued, some activities require additional steps — a registration with a professional body, a sector authority, or a specific licence. The most common cases:
- Crafts — registration with the Chambre des Metiers (Section A or B).
- Architect / consulting engineer — mandatory registration with the OAI (Ordre des Architectes et Ingenieurs-Conseils).
- HORECA (restaurant, cafe, hotel) — declaration to ALVA (Administration luxembourgeoise veterinaire et alimentaire) for food safety; alcohol licence if you sell alcohol.
- Doctor / dentist / pharmacist / nurse / midwife / vet — separate autorisation d’exercer from the Ministry of Health and Social Security.
- Transport (goods or passengers) — licence communautaire and additional vehicle / financial guarantee requirements.
Other regulated professions (lawyer, expert-comptable, reviseur d’entreprises, real estate agent, etc.) have their own professional-body or insurance steps — check with the relevant body for your activity.
Step 6: Check if you qualify for the €12,000 start-up aid
If you are a first-time entrepreneur — no business permit in your name in Luxembourg and you have not run your own business abroad in the last 10 years (salaried employment abroad doesn’t count) — your activity is commerce or craft, your business is a micro-enterprise, and you have non-residential premises, you may qualify for a one-off cash grant of up to €12,000 (paid as 6 monthly instalments of €2,000) under the aide à la primo-création d’entreprise.
6-month deadline. You must apply within 6 months of your business permit being issued — there is no extension after that. If you might qualify, prepare your application in parallel with the post-permit steps above.
See our deep-dive on the €12,000 start-up aid in Luxembourg for the full eligibility checklist, documents, and the MyGuichet procedure.
Professional liability insurance
Professional liability insurance (assurance responsabilite civile professionnelle) is mandatory for some activities (real estate agents, architects, doctors, lawyers) and strongly recommended for most others. It protects you if a client sues over a mistake in your work. Premiums vary from a few hundred euros a year for low-risk consulting to several thousand for high-risk professions.
One mistake on one project can cost more than an entire year of premiums. Insurance is cheap peace of mind.
Timeline at a glance
| When | What |
|---|---|
| Day 0 | Business permit arrives |
| Within 8 days | CCSS declaration submitted |
| Within 15 days | VAT initial declaration submitted (in all cases — requesting franchise or normal regime) |
| Week 1–2 | CCSS confirmation letter arrives; first CCSS invoice incoming |
| A few weeks | VAT number issued (if you registered) |
| Within 3 months | MDE affiliation submitted for day-1 sick-leave cover |
| Within 6 months | Apply for the €12,000 start-up aid (if eligible — first-time entrepreneur in commerce/craft) |
| Ongoing | Monthly CCSS invoices; periodic VAT returns (if registered); annual income tax return |
| Year N+1, by 31 December | First Form 100 due |
Quick reference
| Question | Answer |
|---|---|
| Is CCSS affiliation automatic? | No — submit declaration within 8 days |
| Should I also affiliate to MDE? | Yes — within 3 months of CCSS affiliation, for sick-leave coverage from day 1 |
| Can I reduce or vary my CCSS contributions? | Yes — several paths (reduced pension, side activity, exemption); each needs its own form |
| Is VAT registration automatic? | No — file the initial declaration within 15 days, requesting either the franchise or the normal regime |
| Below 50,000 EUR with no cross-border activity? | Request the franchise regime via the initial declaration. No output VAT, no periodic returns, but you remain identified by AED and notify AED of annual turnover before 1 March each year |
| If I opt out of the franchise into the normal regime, can I switch back? | Opting out commits you to the normal regime for at least one full calendar year, even if your turnover later drops below 50,000 EUR. AED can release you earlier only if the conditions of your activity change materially |
| When does ACD start collecting? | First Form 100 due 31 December of the year following your first tax year. Quarterly advance payments only begin after your first tax assessment |
| When do CCSS bills start? | From day 1 of activity, not day 1 of income |
| What is the first-year CCSS cost? | ~680–750 EUR/month at the minimum wage base — several alternative paths can reduce this; see CCSS for self-employed |
| Do I need a business bank account? | Not legally, but highly recommended |
| Is there a start-up grant I might qualify for? | Yes — for first-time entrepreneurs in commerce/craft micro-enterprises with non-residential premises, the €12,000 aide à la primo-création. 6-month deadline from permit issuance. See our start-up aid guide |
For more on the big picture, see how long does it take to set up as self-employed in Luxembourg.
You didn’t start a business because the paperwork sounded fun. We get it — and we say bravo for doing it anyway.
💜💙 Your BravoLisa Team
This article is for general information purposes only and does not constitute professional tax, legal, or accounting advice. Every situation is different — consult a qualified professional (tax adviser, accountant, or lawyer) for advice specific to your circumstances. BravoLisa does not accept liability for decisions made based on this information.
Guichet LU — Inscription à la TVA, CCSS — Assiette de cotisation et adaptation, Mutualité des Employeurs — Formulaires, AED — Administration de l'enregistrement, des domaines et de la TVA.
