Penalties for violations of the entrepreneur’s obligations in relation to an establishment

Offences

In Sections 17 and 31, the Trade Licensing Act imposes obligations on the entrepreneur in relation to an establishment, and any violation of such an obligation is an offence within the meaning of the Act. The Trade Licensing Act sets a maximum fine for committing these offences:

Under Section 62(4)(a) of the Trade Licensing Act, a fine of up to CZK 1 000 000 may be imposed on an entrepreneur who commits an offence by:

• Failing to notify the trade licensing office of the address of the place where any liabilities can be settled upon the termination of activities at an establishment (Section 62(1)(t) of the Trade Licensing Act), in violation of Section 31(16) of the Trade Licensing Act

Under Section 62(4)(6) of the Trade Licensing Act, a fine of up to CZK 100 000 may be imposed on an entrepreneur who commits an offence by:

• Failing to prove their legal title to use an establishment or the legitimacy of the location of a mobile establishment at the trade licensing office’s request (Section 62(1)(e)(1) of the Trade Licensing Act), in violation of Section 17(3) of the Trade Licensing Act
• Failing to notify the commencement or termination of a trade at an establishment in advance (Section 62(1)(e)(2) of the Trade Licensing Act), in violation of Section 17(3) of the Trade Licensing Act
• Failing to appoint a person to be responsible for the operation of the establishment (Section 62(1)(f) of the Trade Licensing Act), in violation of Section 17(4) of the Trade Licensing Act
• Failing to mark an establishment pursuant to Section 17(7),(8) or (9) of the Trade Licensing Act (Section 62(1)(g) of the Trade Licensing Act
• Failing to ensure that a person fulfilling the condition of knowledge of the Czech or Slovak language is present at the establishment intended for the sale of goods or the provision of services to consumers during opening or business hours intended for contact with consumers pursuant to Section 31(8) (Section 62(1)(p) of the Trade Licensing Act)

Violations of other statutory obligations

The entrepreneur must ensure that the establishment is suitable for carrying on a trade in accordance with specific legislation (Section 17(4) of the Trade Licensing Act) and that any obligations laid down in the Trade Licensing Act or specific legislation are observed when carrying on the trade.

If, at a given establishment, the obligations have been seriously violated or are being violated, the trade licensing office will suspend a trade at the establishment by its decision pursuant to Section 58(6) of the Trade Licensing Act. In the decision, the trade licensing office will set the period over which the trade cannot be carried on at the establishment; this period must not be longer than one year. Unless the reasons that had led to the suspension are eliminated within the specified time limit, the trade licensing office will again decide to suspend the trade at the establishment.