What the manager carries
Three things at once.
Professional qualification, where required for the activity.
Professional integrity, verified against their record.
Actual and permanent day-to-day management of the firm.
These three are inseparable in their person. You cannot place the qualification on one individual and the management on another.
This is what distinguishes the manager for permit purposes from the manager in company law terms, the two roles possibly not coinciding.
| Requirement | What it imposes | Risk if it ends |
|---|---|---|
| Effective management | Genuinely running the activity | Withdrawal of the permit |
| Sufficient presence | Being available for the activity | Withdrawal of the permit |
| Link with the firm | Holding a genuine role | Withdrawal of the permit |
The three requirements bearing on them
They go beyond mere formal appointment.
Actual and permanent management, which excludes a purely nominal role.
A real link with the firm, established on the terms covered in the article on the conditions to meet.
Compliance as regards social security and tax charges, in their own name or through a company they run or have run.
Professional sources further note a requirement of physical presence at the place of business, whose frequency is not specified and should be commensurate with the nature of the activity.
This last requirement is decisive for a foreign firm: appointing a manager who will never attend exposes the permit.
What their departure triggers
This is the main risk, and it is immediate. Losing the qualified manager leads to withdrawal of the permit.
A change of the manager on whom the professional qualification and integrity rest calls for a fresh permit application.
It is not a simple notification, unlike other changes such as company name or legal form, which are reported within one month.
Between the departure and the grant of the new permit, the firm's position is fragile.
An unanticipated departure may therefore interrupt the firm's capacity to trade, even though its activity and resources are unchanged.
How to secure that dependency
Four measures, to put in place before they are needed. They organise continuity if the manager leaves.
Identify someone able to take over the role, holding the required qualification.
Anticipate recognition of their qualification if obtained abroad, that step being lengthy.
Treat the manager's departure as an event with notice, and start the fresh application ahead of the date.
Document the manager's actual presence, which may be verified.
The second measure is the most neglected, although recognition of a foreign qualification cannot be improvised under pressure.
The case of the foreign firm
Three specific points.
The manager's qualification will generally have been obtained abroad, which presupposes prior recognition.
Actual presence in Luxembourg raises a practical question, if the manager lives and works elsewhere.
The integrity documents differ according to length of residence in Luxembourg, which directly concerns non-residents.
These three points explain why the path is longer for a foreign firm, and why it must be started well ahead of the work contemplated.
What this means for a professional
Four rules.
Treat the manager as a critical dependency, on a par with a technical qualification.
Plan for continuity before the question arises.
Do not appoint a nominal manager, actual management and presence being verifiable.
Start qualification recognition very early, it is the longest item on the timeline.
This article reflects the rules at the date of checking and serves professional orientation. It does not constitute legal advice.