What Are the 4 Criteria for a Business Permit in Luxembourg?
To get a business permit in Luxembourg (autorisation d’établissement), you must meet 4 legal criteria. These apply whether you are starting a commercial activity, a craft, or a regulated liberal profession.
| Criterion | What it means |
|---|---|
| Professional integrity (honorabilité professionnelle) | Clean criminal and business record |
| Professional qualification | Diploma, experience, or exemption depending on activity |
| Fixed premises in Luxembourg (etablissement fixe) | A physical address suitable for your activity |
| Effective management | You personally manage the business day-to-day |
These requirements come from the Law of 2 September 2011 (amended 26 July 2023) regulating access to commercial, craft, and certain liberal professions.
1. Professional integrity
You must have a clean professional record. This means:
- No relevant criminal convictions
- No evasion of social security or tax obligations (including withholding taxes) in previous or current activities
- No history of bankruptcy (or you must show it has been resolved)
To prove this, you submit:
- A criminal record extract (extrait du casier judiciaire, bulletin numéro 3) — free of charge
- A sworn declaration (déclaration sur l’honneur) — included in the application form. This is the Article 28 declaration under the Loi du 2 septembre 2011: you disclose any management positions, majority shareholdings, or significant influence over companies in the previous 3 years (or tick “I have neither exercised…”). It is NOT a “no bankruptcy” assertion — the Ministry runs its own check against insolvency records based on your disclosed list.
- If you lived outside Luxembourg in the last 10 years: criminal records from all countries where you resided, plus a notarial declaration of non-bankruptcy
If you have been a Luxembourg resident for more than 10 years, you only need the Luxembourg criminal record (bulletin 3) and the Article 28 sworn declaration. No foreign records or notarial bankruptcy declaration required.
We explain the full process in our article on how to prove a clean professional history.
2. Professional qualification
What you need depends on your activity type:
| Activity type | Qualification required? |
|---|---|
| Commercial — e.g., IT consulting, trading, e-commerce | No qualification needed |
| Craft — List A (e.g., electrician, plumber) | Master craftsman certificate, or DAP + 6 years in a management role |
| Craft — List B (e.g., florist, jeweller) | Vocational diploma or 3 years experience |
| Craft — List C (e.g., photographer, tattooist) | No qualification needed |
| Liberal profession (e.g., architect, accountant) | Relevant diploma required |
| HORECA (hotels, restaurants, cafes) | Certificate of access, or 1 year experience, or a previous permit |
Lists A, B, and C are part of the artisan (craft) classification. Commercial activities are a separate category — they do not appear on these lists and generally require no professional qualification.
Practical tip: If you don’t have the exact diploma, professional experience can sometimes substitute. The Ministry evaluates this case by case. Contact the House of Entrepreneurship for free guidance.
We covered which activities need no qualification in our article on business activities that need no qualification.
3. Fixed premises in Luxembourg
You must have a physical address in Luxembourg with infrastructure suitable for your activity. What counts:
- Home address — works for intellectual services (IT consulting, translation, accounting, etc.)
- Rented office or commercial space — needed for retail, craft workshops, restaurants
- Coworking space — can work if you have a dedicated address
You prove this with a copy of your lease agreement or a residence certificate (certificat de residence).
We go into more detail in our article on what counts as a fixed place of operation.
4. Effective management
The person named on the business permit must personally and regularly manage the business. This means:
- You are physically present in Luxembourg on a regular basis
- You make the day-to-day business decisions
- You cannot just lend your name to someone else’s business
This applies to both sole traders and company directors. If you are a non-resident, you must be able to travel to Luxembourg as often as the business requires.
What documents do I need?
The exact list depends on whether you have been a Luxembourg resident for more than 10 years:
| Document | Resident 10+ years | Resident under 10 years or non-resident |
|---|---|---|
| Business permit application form | Yes | Yes |
| Criminal record (bulletin 3) | Luxembourg only | All countries of residence (last 10 years) + LU bulletin 3 if already active in LU |
| Notarial declaration of non-bankruptcy | No | Yes |
| Sworn declaration | Yes | Yes |
| Proof of qualification (if required) | Yes | Yes |
| Lease agreement or residence certificate | Yes | Yes |
| Copy of ID or residence permit | Yes | Yes |
| Payment of 50 EUR fee | Yes | Yes |
| Articles of association (companies only) | If applicable | If applicable |
How long does it take?
The Ministry of Economy processes complete applications within up to 3 months. In practice, straightforward cases often take 1-4 weeks. If you receive no response within 3 months, the permit is considered tacitly granted.
For the full picture of setup timing — permit, CCSS, AED, ACD, bank account, and start-up aid window — see our overview on how long it takes to become self-employed in Luxembourg.
The key word is “complete.” Incomplete applications cause delays. Double-check every document before submitting.
Quick reference
| Question | Answer |
|---|---|
| How many criteria? | 4: integrity, qualification, premises, management |
| Fee | 50 EUR |
| Where to apply | MyGuichet.lu (recommended) or by post |
| Processing time | Up to 3 months (often 1-4 weeks) |
| No response in 3 months? | Tacit approval |
| Need qualification for IT consulting? | No (commercial activity) |
| Can I work from home? | Yes, for intellectual services |
Bravo to everyone who chose to work for themselves. That takes real courage.
💜💙 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.
Legilux — Loi du 2 septembre 2011 (droit d'établissement), Guichet LU — Autorisation d'établissement, House of Entrepreneurship, Guichet LU — Métier de l’artisanat de la liste B, Guichet LU — Métiers de l'artisanat de la liste C, Guichet LU — Exploitant d’un débit de boissons et d’un établissement de restauration, Guichet LU — Métiers de l'artisanat de la liste A.
