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The conditions to meet

📐 Article5 min read

What you will learn What integrity covers and who must establish it, how qualification is assessed, what real establishment requires, and the duty to maintain.

Three conditions underpin the permit. They do not bear on the same people, and that allocation is poorly understood.

Professional integrity

It aims at the standing of the profession and the protection of contracting parties. Integrity is evidenced by documents at the time of application.

It is assessed on the basis of judicial record, professional sources indicating that in principle matters within a defined period are considered.

It also takes into account any element arising from an administrative enquiry.

It must be met not only by the manager, but also by the holder of the majority of shares and by any person able to exercise significant influence over the management or administration of the firm.

This extension is the least anticipated point: a reference shareholder with no operational role falls within the scope of the check.

The documents required differ according to whether the person has resided in Luxembourg for a significant period, which directly concerns foreign firms.

Condition How it is evidenced Duration of the requirement
Integrity Documents produced at application Ongoing
Qualification Diploma or recognised experience At grant
Real and stable establishment Premises and actual presence Ongoing
Genuine link with the firm The manager's effective role Ongoing

Professional qualification

It is not required for every activity.

It is required where the activity demands it, and it must correspond to the activity concerned.

It is assessed differently according to the activity carried on, which rules out any general rule.

For construction trades it is frequently required, craft being a regulated sector.

Recognition of a qualification obtained abroad follows its own rules, and must be examined by a foreign firm before any other step.

It is often the longest stage of the path, and the one discovered last.

Real and stable establishment

A requirement of substance, reinforced.

The firm must hold suitable infrastructure in Luxembourg, with a fixed place of business.

Official sources expressly exclude structures with no real presence, which rules out mere domiciliation.

The manager must actually and permanently carry on the day-to-day management of the firm.

Professional sources indicate that a requirement of physical presence of the manager at the place of business has been introduced, without the frequency being specified, which presupposes a presence commensurate with the nature of the activity.

This requirement is decisive for a foreign firm contemplating appointing a manager resident abroad.

The real link with the firm

A condition that has changed.

The manager must have a real link with the firm.

Sources indicate that this link is established by being the owner where the activity is carried on in one's own name, or by being registered as an agent in the trade and companies register where the firm is a company.

Professional sources note that the reform relaxed this condition, the requirement to be an employee, partner or shareholder having been removed.

A further condition applies: the manager must not have evaded social security and tax charges, in their own name or through a company they run or have run.

The duty to maintain

The point most content omits.

Firms must satisfy the requirements throughout their existence, and not only at the time of application.

Compliance is checked at the point of filing, but maintaining it conditions the validity of the permit over time.

A change affecting one of the three conditions must therefore be dealt with, either by notification or by fresh application, as the article on the business permit explains.

What this means for a professional

Four rules.

Check recognition of the qualification first, it is often the longest stage.

Identify everyone subject to the integrity test, including shareholders with significant influence.

Plan for a real presence, domiciliation not being enough.

Treat maintaining the conditions as a continuing duty, not as an entry formality.

This article reflects the rules at the date of checking and serves professional orientation. It does not constitute legal advice.

Frequently asked questions

The condition aimed at the standing of the profession and the protection of contracting parties. It is evidenced by documents at application and remains required afterwards.

No, it is not required for every activity and depends on the profession. The family the activity falls into governs the applicable regime.

An actual presence in Luxembourg, with premises and accessible management. That is the point most content omits.

Yes, integrity and real establishment remain required after the grant. Their disappearance exposes the firm to withdrawal of the permit.

Working on a site in Luxembourg