Insolvency Trustee - licencing step by step

1. 5. 2014 | Source: Point of Single Contact (PSC) Czech Republic

Activities carried out by insolvency trustees specifically involve activities associated with bankruptcy and its settlement, i.e. reorganisations, winding-up and the discharge of debtors. The activity primarily includes identifying and listing assets, the valuation and administration of property, its realisation, and handling the proceeds of the realisation of assets.

Persons wanting to carry out the activities of an insolvency trustee must initially pass an insolvency trustee exam and obtain a certificate to that effect. An attorney, tax consultant or auditor shall take a differential insolvency trustee exam. Once they have passed the exam and taken out a professional liability insurance policy, they may apply to the Ministry of Justice for inclusion onto the list of insolvency trustees and for authorisation to carry out the said activity. Once these conditions have been met, the applicant may carry out the said activity.

Procedure for obtaining authorisation:

  1. Application to take the insolvency trustee exam or differential insolvency trustee exam
  2. The applicant must take out a professional liability insurance policy, which is offered by a number of commercial entities
  3. Proposal for authorisation to pursue the activities of an insolvency trustee and inclusion onto the list

1) Application to take the insolvency trustee exam or differential insolvency trustee exam

The exam is in two parts – written and oral. All required information on the exam, including the date it is to be held, is available to applicants at the Ministry of Justice website in the section dedicated to insolvency proceedings.

  • The application shall be submitted to the Ministry of Justice
  • Although not obligatory, use of the prescribed form is recommended (in Czech)
  • Documentary proof of the highest-level completed education shall be annexed to the application
  • In addition, documentary proof that the administrative fee has been paid must be attached. This must be transferred by the exam applicant to the ministry account at the latest by the date of the written part of the exam. The document attesting to payment must be presented before sitting the exam. The number of the bank account reserved by the Ministry of Justice for this purpose is 3711-5120001/0710; the applicant’s birth number shall be quoted as the variable code.
  • Attorneys, tax consultants or auditors shall attach to their application the relevant chamber’s confirmation to the effect they are listed in the list of attorneys, tax consultants, auditors; a notary shall annex documentary proof of their appointment as notary.

Applicants shall be provided with the relevant certificate after passing the exam.

2) The applicant must take out a professional liability insurance policy, which is offered by a number of commercial entities

Upon the completion proceed to the next step

3) Proposal for authorisation to pursue the activities of an insolvency trustee and inclusion onto the list

  • The request shall be filed with the Ministry of Justice
  • It is possible to use the standard form
  • The request shall be supported with the certificate confirming that the applicant has passed the insolvency trustee exam (see point 1), documentary proof of the highest-level completed education, and a valid professional liability insurance policy
  • Conditions applying to the award of the licence and application requirements
  • Attorneys, tax consultants or auditors shall attach to their application the relevant chamber’s confirmation to the effect they are listed in the list of attorneys, tax consultants, auditors; a notary shall annex documentary proof of their appointment as notary.

Further information on licence proceedings

The Ministry of Justice shall award the authorisation and register the applicant without undue delay

The business may be conducted after fulfilling all the above stated requirements.

Related information:

If you have any questions, you can contact Points of Single Contact (PSC) set up at 15 municipal trade licence offices in all regions. More information on PSCs.

You can write your comments and proposals in the discussion forum.

Forms referred to in the guideline: