Holding voluntary and compulsory public auctions - acquisition of trade permit step by step 

By virtue of a licence it is possible to hold voluntary and compulsory auctions. Further, it licences the performance of activities aimed organizing an auction.

Applicants wanting to carry on the permitted trade must obtain the decision granting the trade permit from a trade licence office. The trade permit is granted following a written application. The Ministry of Regional Development shall express its opinion regarding the application.

Application for granting of a trade permit

The application is submitted:

1. at any trade licence office
2. via public administration contact points (the so-called Czech POINT) – in Czech only
3. electronically, via the information system provided by the Register of Trade Business

Form of submission:

The application may only be submitted using the so-called Standard Registration Form.

• Single Registration Form for natural persons
• Single Registration Form for legal persons

Conditions for carrying on the trade + application requisites and appendices

• Guideposts for permitted trades

Further application details/appendices

Documents evidencing professional competence should be attached to the notification. In this instance, professional competence shall mean the following:
for holding voluntary public auctions:

1. higher education and 1 year’s experience of auctions or real estate activities, or
2. further vocational education and 3 years’ experience of auctions or real estate activities, or
3. secondary education and 5 years’ experience of auctions or real estate activities, or
4. a retraining certificate or other evidence of professional qualification for the relevant employment activity, issued by an establishment accredited in accordance with specific legislation, or by an establishment accredited by the Ministry of Education, Youth and Sports, or by a ministry in whose purview the sector in which the trade is operated falls, and 9 years’ experience of auctions or real estate activities, or
5. documents under section 7(5)(j), (k), (l) or (m) of the Trade Licensing Act;

for holding compulsory public auctions:

1. higher education and 3 years’ experience of auctions or real estate activities, or
2. further vocational education and 4 years’ experience of auctions or real estate activities, or
3. secondary education and 6 years’ experience of auctions or real estate activities, or
4. a retraining certificate or other evidence of professional qualifications for the relevant employment activity, issued by an establishment accredited in accordance with specific legislation, or by an establishment accredited by the Ministry of Education, Youth and Sports, or by a ministry in whose purview the sector in which the trade is operated falls, and 10 years’ experience of auctions or real estate activities, or
5. documents under section 7(5)(j), (k), (l) or (m) of the Trade Licensing Act.

Further, the auctioneer must make a contract of insurance of his/her liability for damage which might be incurred in connection with its auctioneering activities. This contract needs to be concluded within 30 days of the licence being awarded.

Besides the requirements above, an auctioneer holding compulsory auctions must further meet the following conditions:

1. if the auctioneer is a legal person, the auctioneer’s authorized capital or possibly registered authorized capital must amount to at least CZK 5,000,000 and must be fully paid in,
2. the auctioneer’s duty to effect professional liability insurance must be satisfied so that the amount of indemnity is at least CZK 35,000,000, and
3. the auctioneer is bound to have his/her/its financial statement verified by an auditor.

Related information: