What Counts as a Fixed Place of Operation for a Business Permit in Luxembourg?

To get a business permit (autorisation d’établissement) in Luxembourg, you must have a fixed place of operation (établissement fixe) — a physical address in Luxembourg with infrastructure suitable for your activity.

Short answer: If you provide intellectual services (IT consulting, translation, accounting, coaching), your home address is usually enough. If you run a shop, restaurant, or craft workshop, you need a commercial space.

What does the law require?

The Act of 2 September 2011 on the right of establishment says the business permit is only granted if there is a physical installation in Luxembourg that includes infrastructure suitable for the nature and scale of the activity.

This means:

• The address must be in Luxembourg — not across the border
• The space must be appropriate for what you do — a home office is fine for a consultant, but not for a bakery
• You must provide a copy of your lease agreement or a residence certificate (certificat de residence) as proof

Working from home

For many self-employed people — especially in IT, consulting, and liberal professions — working from home is the simplest and most common option.

What you need:

• A residence certificate (free, from your commune) confirming your address in Luxembourg
• That’s it — no special permission or separate commercial lease required

Your home address will appear on your business permit. If you later move to a separate office, you will need to update your permit.

Renting an office or commercial space

If your activity requires dedicated premises (retail, craft, HORECA), keep these points in mind:

• Check your activity type first — make sure the space you rent is suitable for the business permit you are applying for. A residential apartment is usually not approved for a restaurant.
• Have the lease ready for the second step — according to the application form, you give the address when you apply, and the lease or other proof of establishment follows at the latest in a second step, once your file has been examined.
• Check local zoning rules — some communes have restrictions on commercial activities in residential areas.

Practical tip: If you are unsure whether your planned premises will be accepted, ask the House of Entrepreneurship before signing a lease. It is free and can save you from an expensive mistake.

Coworking spaces

A coworking space can work as your fixed premises, provided:

• Your contract lets you use the space as your business’s establishment — read it before you sign: an address alone does not count
• The space meets what article 5 of the law asks for: appropriate premises and equipment, the business actually managed there, and all its documents accessible there at any time
• The space is appropriate for your activity type

Company domiciliation does NOT count

A company domiciliation (domiciliation de societes) — where a fiduciary or service provider registers your company address at their office — is explicitly excluded by law. A domiciliation address does not constitute a fixed place of operation for business permit purposes. You need a genuine place where you actually work.

Effective management — you must be present

Having a fixed address is not enough. Since 2023, article 4 of the law also requires the person named on the business permit to run the day-to-day management effectively and permanently, physically present in the establishment. This means:

• You are physically present in the establishment
• You make the day-to-day business decisions yourself
• If you live abroad, the same applies: you run the business by being present in the establishment

The Ministry can refuse or revoke a permit if the permit holder is not genuinely managing the business from Luxembourg. This is not just a formality — they do check.

Quick reference

For the full picture of all 4 business permit criteria, see our article on the 4 criteria for a business permit.