Nowadays by using the optical parametric chirped-pulse amplification (OPCPA) technique it is reasonable to expect the laser pulse energy up to 10 Joules with the repetition rate of 10-25 Hz. Development of such laser systems with the pulse compression down to 30 fs opens a way to build compact free-electron laser (FEL) based on the laser wakefield acceleration (LWFA). Combination of new laser development with constant improvement of the LWFA electron beam parameters has great potential in future development of the compact high repetition rate FEL, which is extremely demanded by the X-ray user community. The LWFA-driven FEL project called “LUIS" is currently under preparation at ELI-Beamlines in Czech Republic in collaboration with University of Hamburg. The LUIS project aims to experimentally demonstrate the stable and reliable generation of X-ray photons with a wavelength below 5 nm for user applications. An overview of the LUIS project including design features and a description of all the instrumentation used to characterize the laser, plasma, electron beam, photon generation and other subsystems will be presented in the frame of this report. The main challenges and future development of the laser-driven compact X-ray free electron laser with the radiation wavelength less than nm will also be discussed.