Fixed Premises and Effective Management for a Business Permit
Published on 10 October 2026 · Updated on 10 October 2026
In short
In Luxembourg, the effective management requirement for a business permit means the company needs fixed physical premises suited to the nature and size of its activity, and a manager who ensures its day-to-day management effectively and permanently, with a real link to the company. A mere administrative address does not meet the first condition.
Definition
Effective management is the real and permanent exercise of day-to-day management of the company by the manager who holds the business permit: they take the routine decisions, are regularly present at the premises and do not act as a nominee.
The conditions in brief
- Premises
- Physical installation in Luxembourg
- Manager
- Effective and permanent management
- Link with the company
- Shareholder, agent registered with the RCS or employee
- Nominee
- Breach of good repute
The five elements of fixed premises
| Element | What it covers | Example of evidence |
|---|---|---|
| Physical installation | Premises suited to the nature and size of the activity | Lease, shared office contract, floor plan |
| Infrastructure | The administrative and technical equipment needed | Workstation, telephone, professional equipment |
| Management | The effective and permanent direction of the activities on site | Organisation described in the application |
| Presence | The manager’s regular presence | Contract or mandate, working time arrangements |
| Documents | Keeping the business, accounting and staff documents on site | Identified storage location |
Elements taken from the Chamber of Skilled Crafts and Trades fact sheet on the right of establishment, which comments on the law regulating access to professions. The Ministry of the Economy assesses each file.
Preparing this part of the file
- 1
Choose a place consistent with the activity
A workshop for a craftsperson, an office for a consultant, premises open to the public for a retail shop.
You, with us - 2
Formalise the occupation
Lease or shared office contract in the name of the company or in the process of being transferred.
Landlord - 3
Appoint the manager
The manager or a qualified employee, registered with the RCS as an agent or bound by contract, who meets the qualification and good repute conditions.
Shareholders - 4
Describe the organisation
Who manages day to day, from where, with what means. Most requests for further information concern this point.
Us, in the application - 5
File and follow up
File on MyGuichet.lu, answer any questions from the Ministry.
Ministry of the Economy
Domiciliation and the permit: beware of the shortcut
A domiciliation provides a registered office and an address. It does not in itself amount to physical premises within the meaning of the right of establishment. A company that only rents an address and whose activity requires a permit risks a refusal. We introduce, depending on the case, shared offices or domiciliations with a law firm, without including them in our prices.
Employee or non-resident manager
The manager can be a shareholder, a director or an employee of the company. If an employee, their contract must give them a real role in management: the Ministry checks the consistency between that role, the time devoted and the size of the company. The texts consulted set no minimum number of hours; we therefore avoid promising a threshold.
A manager living abroad is not excluded, but must be able to show regular presence at the premises. They also provide a notarial declaration of no bankruptcy and criminal record extracts from the countries where they lived during the last 10 years. See the business permit requirements and the comparison registered office vs physical office.
Next step
Secure your permit application
We check the premises and the manager’s role before filing.
Frequently asked questions
Is a domiciliation enough to obtain the business permit?
As a rule, no. The permit assumes physical premises suited to the activity, with equipment and the manager’s regular presence. A domiciliation address alone does not meet these requirements.
Must the manager live in Luxembourg?
Residence is not required as such. The manager must however ensure effective and permanent management, which implies regular presence at the premises. A cross-border commuter often meets this condition more easily than a manager living far away.
Can you manage several businesses with several permits?
The law no longer limits the number of businesses for which a person can be appointed. The manager must however genuinely ensure day-to-day management of each one; the Ministry may ask them to show it.
What does a nominee manager risk?
Using an intermediary is a breach of professional good repute and a criminal offence. It can lead to the refusal or withdrawal of the permit.
Is a shared office accepted?
Often, provided the space matches the activity and the company genuinely has a workstation there and keeps its documents there. Occasional access to a meeting room is more fragile.