Luxembourg Unveils New Measures to Simplify Administrative Procedures for SMEs

On Friday 21 March 2025, Luxembourg’s Minister of the Economy, SMEs, Energy and Tourism, Lex Delles, presented new administrative simplification measures aimed at easing the bureaucratic burden on businesses, particularly small and medium-sized enterprises (SMEs).

As reported by the Ministry of the Economy, the initiative forms part of the work carried out by the High Committee for SMEs and directly addresses concerns raised by business representatives.

Minister Lex Delles emphasised the importance of the announced reforms for the future of Luxembourg’s SMEs. He stated: “Administrative procedures must not represent an unnecessary burden for our businesses. Aware of this issue, the government is taking concrete steps to remove obstacles and simplify procedures. The measures presented today provide practical and effective simplifications, particularly for SMEs, which should be able to focus on their core activities rather than spending time on complex formalities”. He continued: “By reducing administrative burdens and removing bureaucratic barriers, we are streamlining the business journey and allowing companies to save valuable time at each stage – from creation to finding premises, accessing state aid, or fulfilling reporting requirements. Simplification is not a one-time action, but a continuous process that the government will pursue with determination to bring real improvements to businesses and create an economic environment conducive to productivity, innovation and development.” 

According to the statement, administrative simplification is considered a key factor in enhancing business productivity. In close collaboration with the Luxembourg Chamber of Commerce, the Chamber of Skilled Trades and Crafts, the Fédération des Artisans, Horesca and the Luxembourg Confederation, the Ministry of the Economy adopted a bottom-up approach, collecting proposals directly from the business community. These proposals were then reviewed and discussed with the relevant ministries and public bodies to establish a concrete action plan.

The Ministry of the Economy has also set up a dedicated Directorate-General for Administrative Simplification, which will continue efforts to reduce the regulatory burden on companies.

As a continuous process, administrative simplification is achieved not through a single major reform but through a range of measures, both large and small. Several initiatives have already been introduced, including: the law on accommodation forms, which simplifies procedures for clients, businesses and public administrations; the implementation of two-way communication via MyGuichet for establishment permit applications, which has saved over 15,000 mailings; the automation of QR code requests for permits, allowing for faster access to duplicates.

The new measures presented include:

- a unified and streamlined business creation process: this reform consolidates procedures from the Ministry of the Economy, the Registration Duties, Estates and VAT Authority (AED) and the Joint Social Security Centre (CCSS) into a single process covering establishment, VAT and employer registration;

- expansion of the commercial land register: a comprehensive mapping of municipal, regional and national economic activity zones, as well as special economic zones, will improve land management and SME access to business sites;

- simplified access to state aid and introduction of new SME support packages: revisions to framework laws on SME, environmental and research aid include the application of the “Once-Only” principle, the generalisation of the “silence implies consent” rule and the establishment of processing deadlines;

- simplified procedures for SMEs to access aid programmes;

- development of a digital sustainability reporting tool: this tool, developed in cooperation with the Luxembourg Chamber of Commerce and supported by the Chamber of Skilled Trades and Crafts, will help SMEs meet sustainability reporting obligations;

- implementation of the “Once-Only” principle: a new digital tool within the Ministry of the Economy will allow public administrations to share necessary information without repeatedly requesting the same data from businesses.

Carlo Thelen, Director General of the Luxembourg Chamber of Commerce, stated: "Administrative simplification is a key pillar in ensuring a dynamic and attractive entrepreneurial environment. As the voice of businesses, the Chamber of Commerce and its House of Entrepreneurship are actively working to reduce administrative burdens and improve procedural efficiency. Through an in-depth qualitative study and the anticipated results of the upcoming Economic Barometer, we aim to identify the concrete expectations of businesses and determine the priorities that must be addressed to strengthen the attractiveness and competitiveness of the business environment. This depends on reducing bureaucratic burdens and optimising processes at every stage of the entrepreneurial journey."

Tom Wirion, Director General of the Chamber of Skilled Trades and Crafts also highlighted the relevance of the “administrative simplification” initiative for craft businesses, explaining: "The proportion of employees assigned to administrative tasks has increased disproportionately, reaching 35% of staff in 2024 compared to only 11% in 1990. The initial measures implemented aim to reduce duplication in procedures involving the Ministry of the Economy, thereby easing the burden on businesses – a development that is to be welcomed. Unlocking productivity potential and positively impacting profitability should be the guiding principles for all public administrations involved. Simplification of European regulations will also be crucial, given their impact on the national economy and the SME test should be applied at all levels when introducing new legislative or administrative initiatives."

IK