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Auctioneer trade; application for a license

  • Brief description

    If you want to auction off third-party movable property, third-party land or third-party rights on a commercial basis, you need a permit.

  • Description

    The auctioning of third-party movable property, third-party land or third-party rights is subject to authorization.

    The auctioneer is generally subject to certain prohibitions, e.g. he may not bid for himself or through another person at his auctions or purchase auctioned goods entrusted to him or auction movable goods from the range of goods he carries in his commercial business, unless this is customary.

    Furthermore, the auctioneer is subject to the requirements of the Auctioneers Ordinance (VerstV), e.g. he must

    • prepare a list of the items to be auctioned no later than two weeks before the auction, in which the auctioned items of each client are to be uniformly identified
    • notify the competent authority in writing or electronically of each auction at least two weeks before the planned auction date, stating the place and time of the auction and the type of goods to be auctioned
    • provide the opportunity to inspect the auctioned item for at least two hours
    • keep a record of each auction order and its execution

    In the case of partnerships, every managing partner is a trader; in the case of legal entities, the license is issued to the legal entity.

    Auctioneers with special expertise, with the exception of legal entities, can be publicly appointed by the competent authority (see "Related topics").

    The authorities have rights of information and inspection vis-à-vis traders. At the request of the authorities, the parties concerned must provide the information required to monitor business operations. Furthermore, the authorities are authorized to enter the business premises in order to carry out inspections and visits.

    In addition to obtaining a permit, the business must be registered with the responsible municipality.

  • Prerequisites

    Permit requirements are reliability and orderly financial circumstances of the trader.

    The applicant's reliability is checked on the basis of a certificate of good conduct for authorities and information from the central trade register.

    The orderly financial circumstances are determined on the basis of information about entries in the register kept by the insolvency court or the enforcement court.

     

  • Deadlines

    Duration of the procedure: approx. 3 - 5 weeks

  • Required documents

    Valid identity card or passport

    Proof of sound financial standing

    Information regarding entries in the registry maintained by the insolvency court or the enforcement court (Section 26(2) of the Insolvency Code, Section 915 of the Code of Civil Procedure)

    Proof of good character: Certificate of good conduct for government authorities (Section 30(5) of the Federal Central Register Act) and information from the Central Trade Register (Section 150(5) of the Trade Regulation Act)

    In the case of authorization: a written power of attorney and identification documents for both the principal and the authorized representative

    Documents required for registered companies, civil-law partnerships, and limited liability companies (GmbH) in the process of formation:

    • For registered companies (including GmbHs): an extract from the commercial register or comparable registration documents from abroad (with a German translation),
    • For partnerships: partnership agreement,
    • For a GmbH in the process of being formed: a copy of the notarized articles of incorporation and a power of attorney from the founders authorizing the commencement of business operations prior to entry in the commercial register.

  • Costs

    Permit: 50 to 1,000 euros in accordance with the Schedule of Costs under the Costs Act (Tariff No. 5.III.5/13.1)

  • Legal basis

  • Legal remedy

    Administrative court action

  • Procedure

    You must apply for the permit in writing or electronically with the competent authority.

  • Related services


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