Entrepreneurship in Luxembourg Grows as Business Permit Applications Rise

On Thursday 2 July 2026, Luxembourg’s Minister for the Economy, SMEs, Energy and Tourism, Lex Delles, presented the 2025 review of business permits, together with the main elements of the reform of business establishment law.

According to the Luxembourg Ministry of the Economy, the annual publication of these statistics makes it possible to monitor developments in Luxembourg's business landscape and to adapt the legal and administrative framework to the realities faced by businesses. An environment that supports the creation and development of SMEs is an essential factor in maintaining the vitality of the national economy.

Entrepreneurship remains dynamic

The ministry reported that in 2025, it received 12,562 applications for business permits, compared with 12,578 in 2024. A total of 6,815 new businesses were established in 2025, compared with 5,741 the previous year, representing an increase of 18%. This growth was driven in particular by certain commercial activities and by skilled trades included in List C.

"The 2025 review confirms that the desire to start a business remains strong in Luxembourg. The 18% increase in new business creation is an encouraging sign, particularly in what remains a challenging economic environment. Our role is to provide entrepreneurs with a framework that is straightforward, predictable and fair, while maintaining the necessary controls to ensure trust and protect all stakeholders," said Minister Delles.

With regard to foreign service providers wishing to carry out a temporary craft activity in Luxembourg, the ministry reported that 4,258 certificate applications were registered in 2025, compared with 4,335 in 2024. This represents the lowest level recorded since 2016. The decline may be linked in particular to the slowdown observed in certain parts of the construction sector.

In 2025, a further 842 business permits were invalidated following bankruptcy, compared with 819 in 2024, representing an increase of 3%.

The average processing time for applications was 6.62 days in 2025, compared with 6.18 days in 2024 and 8.6 days in 2021. Processing times therefore remain significantly lower than in 2021, despite strengthened checks relating to professional integrity, public debts, and compliance with international standards on anti-money laundering and counter-terrorist financing.

Business establishment law made simpler

During the presentation of the review, Minister Delles also outlined the main elements of the reform of business establishment law. Bill No. 8759, submitted to the Chamber of Deputies on 3 June 2026, aims to simplify access to economic activity while strengthening market transparency and integrity.

The principal change is the introduction of a distinction between activities that will continue to require prior authorisation and those that will instead be subject to a notification procedure. Regulated activities, those requiring specific qualifications or certificates, and activities presenting particular risks, especially in relation to anti-money laundering and counter-terrorist financing, will continue to require prior authorisation.

Conversely, for activities that are not subject to any specific regulation, entrepreneurs will be able to commence operations as soon as they receive their notification number, with the necessary checks to be carried out subsequently. The procedure will be fully digitalised and will require fewer supporting documents.

For the activities concerned, the draft law also provides for the possibility of appointing an authorised representative to ensure a permanent physical presence at the business premises where the manager is unable to do so personally, without transferring responsibility.

Moreover, the "second chance" mechanism will be adapted to make it easier for entrepreneurs who have experienced business failure to start a new activity. The professional integrity regime will be modernised, notably by aligning it with the concept of the beneficial owner, while the rules relating to public debts will be clarified.

"This reform will reduce waiting times and administrative procedures for low-risk activities, without compromising the essential checks. It will also adapt the 'second chance' mechanism to enable entrepreneurs who have experienced business failure to recover and start again. We want business establishment law to be simpler, more proportionate and better suited to the day-to-day realities faced by entrepreneurs," remarked Minister Delles.