Update Luxembourg law on business licenses: three key insights
On 20 July 2023, the Luxembourg Parliament passed Bill no. 7989 (the 'Bill') which amends the law of 2 September 2011 regulating access to the professions of craftsman, trader, industrialist and certain liberal professions, as amended (the 'Law'). The modernised legal framework for business license application is scheduled to enter into force on 1 September 2023. What changes can be expected regarding business licenses?
1. It is no longer required that the business license holder is a shareholder, partner or employee of the company
The Bill allows the business license holder to be registered as a representative (mandataire) of the company with the Luxembourg Trade and Companies Register (Registre de Commerce et de Sociétés) without the need to be a shareholder or employee. The business license holder will need to be regularly physically present at the work premises to ensure that he/she can effectively carry out the necessary daily management.
2. Business license holders may benefit from the ‘second chance principle’ following a bankruptcy
The ‘second chance principle’ enables some business license holders to undertake a second business activity after having experienced a bankruptcy in a former business.
3. Business licenses will be issued digitally
The Bill modernises the application procedure via a dedicated online portal. Business licenses will be available online for public consultation. Furthermore, each business license will be assigned a two-dimensional barcode which must be displayed in a place that is accessible to the public.
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