Deciding on the grant of a concession

The decision on a concession has come into force

No appeal was lodged against the decision to grant a concession and the decision has come into force. What is the further procedure followed by the trade licensing office?

The decision on a concession has been appealed

One of the parties to the proceedings (the entrepreneur, the responsible representative) disagrees e.g. with the scope of the concession granted or with the conditions set and has lodged an appeal against the decision to grant a concession. What is the further procedure followed by the trade licensing office?

Decision to grant a concession

If the general and specific conditions for carrying on a trade have been met, if there is no impediment to carrying on a trade and if the state administration authority competent under Annex 3 to the Trade Licensing Act agrees to the grant of a concession, the trade licensing office will decide to grant a concession. If, as part of the application for a concession, an application for approval of the appointment of a responsible representative is also submitted and the responsible representative meets the conditions specified by law, the trade licensing office will decide to approve the appointment in the decision to grant the concession.

The decision to grant a concession to a natural person includes:

Given name and surname, academic title or scientific degree
Birth registration number, if assigned
Date of birth of the entrepreneur
The address of the entrepreneur, for a foreign person the address of domicile outside the Czech Republic and the address of residence in the Czech Republic, if permitted
The designation and address of the branch plant in the Czech Republic, if set up
Company name, if the natural person is registered in the commercial register
Personal identification number, if assigned
The objects of business in full or in part in accordance with Section 50(2) of the Trade Licensing Act
The address of the registered office
The validity period of the trade authorisation; in the case of a person who is subject to the obligation to have a residence permit under Section 5(5) of the Trade Licensing Act, this period is deemed to be the period of residence permitted
The date and place of issue of the decision

The decision to grant a concession to a legal person includes:

Company name, business name
The address of the registered office
Personal identification number, if assigned
In the case of a foreign person, the designation and address of the branch plant in the Czech Republic
The objects of business in full or in part in accordance with Section 50(2) of the Trade Licensing Act
The validity period of the trade authorisation
The date and place of issue of the decision

If the decision to grant a concession to a natural or legal person also approves the appointment of a responsible representative, the decision also includes the following scope of information on the responsible representative:

Given name and surname, academic title or scientific degree
Date of birth of the responsible representative
The address of domicile of the responsible representative, in the case of a foreign person the address of domicile outside the Czech Republic and the address of residence in the Czech Republic, if permitted

Definition of the moment of the inception of trade authorisation for a permitted trade

A foreign natural person

If a foreign person is subject to the obligation to have their residence permitted in the Czech Republic in order to carry on a trade, and a document proving the granting of a visa for a stay of more than 90 days or a document proving a long-term residence permit has not been attached to the application for concession at the time of deciding on the concession, the inception of the trade authorisation is tied to the date of presenting the relevant document proving a residence permit for the Czech Republic.

A foreign (natural or legal) person intending to carry on a trade in the Czech Republic through a branch plant

If the branch plant of a foreign person is not yet registered in the commercial register at the time of the deciding on the concession, the inception of the trade authorisation is tied to the date of registration of the branch plant in the commercial register, provided that the application for registration in the Commercial Register must be submitted within 90 days from the date of delivery of the extract from the trade licensing register.

Legal person created by registration in a public register (not yet registered)

If a legal person whose creation is tied to its registration in a public register is not yet registered in such a register at the time of deciding on the concession, the inception of the trade authorisation is tied to the date of registration of the legal person in the relevant public register, provided that the application for registration in the relevant public register must be submitted within 90 days from the date of delivery of the extract from the trade licensing register.

In all other cases, the trade authorisation for a permitted trade is created as of the date of entry into force of the decision to grant the concession. For the purpose of the entrepreneur’s legal certainty, the description of the moment of the inception of trade authorisation is provided in the decision to grant a concession.

The further course of the trade licensing proceedings depends on whether the decision to grant a concession comes into force or whether an appeal is lodged against it.