Holding voluntary and compulsory public auctions - licencing step by step

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

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.

Those interested in operating a business must obtain a license from the Trade Licensing Office. Licenses are granted by written application. The Ministry of Regional Development has an input on the application.

Application for a license

The application shall be 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.

Conditions for conducting the trade + application requisites and appendices

More specifics/annexes to the application

The application shall be accompanied by material demonstrating professional qualification. In this case, it means:
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: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 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 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.

If all requirements have been met, the Trade Licensing Office will issue a decision on the application for a license within 30 days of receipt of the application at the local Trade Licensing Office. If the license is granted, the Trade Licensing Office will register it in the Trade Licensing Register within 5 days from the date of granting the license and issue a certificate to the business.

After satisfying the above requirements, the operation can proceed.

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.