LexGo

Reform of the right of establishment in Luxembourg: what to expect?
04/05/2022

On April 8, 2022, the Minister of Middle Classes submitted draft bill n°7989 amending the law dated September 2, 2011 regulating access to the professions of craftsman, trader, manufacturer and certain liberal professions.

The reform aims to modernize the right of establishment in order to create a modern legal framework that will stimulate entrepreneurship.

The key proposals to achieve this objective are:

  • Principle of second chance after bankruptcy: The right to start a business a second time with a new business license following bankruptcy due to misfortune (e.g. loss of a prominent client, illness, pandemic) or mismanagement (e.g. mistake in the company's strategic choices) is facilitated.
     
  • Simplification of the requirements relating to the holder of the business license: It would no longer be necessary for the holder of the license to be a partner, shareholder or employee of the company. He should have a real link with the enterprise by (i) being the owner of the business if he carries out his activity in his own name or (ii) being registered with the Luxembourg Trade and Companies Register as representative if the enterprise is operated as a company. It is also clarified that the holder of the license may reside anywhere in the European Economic Area provided that he can demonstrate a regular presence in the establishment in Luxembourg.
     
  • Enhanced protection of any new director taking over the business following a previous malicious director who concealed the financial situation of the company in order to avoid any responsibility for the payment of public debts.
     
  • Facilitation of business transfers: An employee who has held a position in a company for three years - as opposed to ten years previously - would have the opportunity to take over the business license before acquiring the necessary professional qualifications within a period of five years.
     
  • Simplification of administrative procedures: Any changes made to the data entered with the Luxembourg Trade and Companies Register will be automatically exchanged with the Directorate General of Middle Classes.
     
  • Temporary business licenses: In the event of a departure of the holder of the business license, a provisional business license may be granted for 6 months in order to avoid any interruption in the company’s activity. Currently, no qualification requirement is necessary. According to the bill, a provisional license can now be granted only to a company that has already had a business license for at least six months.
     
  • Access to certain craft professions is simplified: The qualification requirement will be abolished for certain creative craft activities, such as photographer, designer...
     
  • Regulation of short-term rentals: The activity of short-term rental receives a framework in order to regulate any activity that is similar to the operation of an hotel. A cumulative threshold of three months over a period of one year from the last rental will be introduced, from which the operator will have to obtain a business license.

Zie ook : CMS Luxembourg ( Mr. GĂ©rard MaĂ®trejean ,  Mr. Pawel Hermelinski )

[+ http://www.cms-db.com]

Mr. Gérard Maîtrejean Mr. Gérard Maîtrejean
Partner - Avocat Ă  la Cour
[email protected]
Mr. Pawel Hermelinski Mr. Pawel Hermelinski
Partner - Avocat Ă  la Cour
[email protected]

Alle artikels Vennootschapsrecht

Laatste artikels Vennootschapsrecht

Deletion of documents published with the RCS – Recent Luxembourg case law
10/06/2022

Legal proceedings were initiated in front of the Luxembourg district court by a public limited liability company (soci&eac...

Read more

CSSF Circular 22/811 on UCI Administrators
03/06/2022

On 16 May 2022, the CSSF issued Circular 22/811 concerning the authorisation and organisation of entities acting...

CSSF Circular 22/811 on UCI Administrators Read more

Piercing the corporate veil of a Luxembourg limited liability company - Recent case law
05/05/2022

On 3 April 2019, the Luxembourg court of appeal reiterated certain principles applicable for a claimant seeking to pierce ...

Read more

The European Commission’s proposal for a directive on corporate sustainability due diligence
18/04/2022

On 23 February 2022, the European Commission published a proposal for a Directive on Corporate Sustainability Due Dil...

The European Commission’s proposal for a directive on corporate sustainability due diligence Read more

Laatste artikels van Mr. Gérard Maîtrejean

Extension of measures concerning the holding of meetings in companies and extended period for the...
30/06/2020

Extension of the effects of the Grand Ducal Regulation of 20 March 2020 regarding the means used to hold general meetings ...

Read more

COVID-19: Overview of Luxembourg supporting measures
26/03/2020

The Covid-19 outbreak has been declared a public health emergency of international concern by the World Health Organi...

Read more

Laatste artikels van Mr. Pawel Hermelinski

Extension of measures concerning the holding of meetings in companies and extended period for the...
30/06/2020

Extension of the effects of the Grand Ducal Regulation of 20 March 2020 regarding the means used to hold general meetings ...

Read more

LexGO Network