Concession proceedings under Sections 50–56 of the Trade Licensing Act

What the Act says

Licensed (concession) trades (listed in Annex No. 3 to the Trade Licensing Act) are those for which the state requires not only that the conditions be met, but also an active authorisation. For this reason a mere notification, as with unqualified (free), regulated or craft trades, is not sufficient; instead, concession proceedings take place under Sections 50 to 56 of Act No. 455/1991 Coll.

The concession application (Section 50). Anyone who intends to carry on a licensed (concession) trade "shall file an application for the grant of a concession with the Trade Licensing Office" (Section 50(1)). The provisions on notification apply accordingly to the particulars of the application (Section 45(2), (3) to (5) and Section 46), and the scope of business is stated in full or in part in accordance with Annex No. 3 (Section 50(2)). Where conditions of professional or other qualification are laid down, the applicant attaches proof of their qualification, or that of the responsible representative (Section 50(3)). In addition, the applicant must state the information required under special regulations and submit the documents "necessary for the competent state administration body to issue its opinion" (Section 50(4)).

Opinions of the bodies concerned (Section 52). Where an authorisation, consent, permit or statement of another state administration body is required in order to carry on the trade, the Trade Licensing Office submits the application together with the documents to that body. That body "is obliged to issue its opinion within 30 days of delivery of the application, unless Annex No. 3 provides otherwise", and the key point is that "the Trade Licensing Office is bound by its opinion" (Section 52(1)).

Deciding on the concession (Section 53). Before deciding, the Office ascertains whether both the general and the special conditions are met and whether there is no obstacle to carrying on the trade (Section 53(1)). If any condition is not met, or if the competent body under Annex No. 3 does not consent, the Office "rejects the application" (Section 53(2)). In the decision granting the concession the Office also "sets the conditions for carrying on the trade under Section 27(3)" (Section 53(5)).

The trade licence arising and the time limits (Sections 54, 10). This is the fundamental difference from notification: for licensed (concession) trades the trade licence arises "on the day the decision granting the concession becomes final" (Section 10(1)(b)). Within five working days of the day the decision becomes final, the Office enters the trade in the Trade Register and issues the extract (Section 54(1)).

Commentary and explanation

With a notification, the trade licence as a rule arises on the very day of notification. With a concession it is different: administrative proceedings must take place and the licence arises only when the favourable decision becomes final. The day the application is filed therefore does not yet mean that you may carry on business.

The most important practical point is being bound by the opinion (Section 52(1)). If, for example, the police, the rail authority or a ministry issues a negative opinion, the Trade Licensing Office has no room for its own discretion and must reject the application. Conversely, the Office cannot override a favourable opinion. For this reason the centre of gravity of the whole proceedings often shifts to the body concerned rather than the Trade Licensing Office.

Watch out for the time limits as well. The Trade Licensing Act sets no special time limit for the concession decision itself, so the general time limit of the Administrative Procedure Code applies (as a rule within 30 days of the commencement of proceedings, and in particularly complex cases up to 60 days). To this is added the body concerned's time limit of up to 30 days for its opinion, so the actual processing time tends to be longer than for an ordinary trade. The five-day time limit for the entry and the extract (Section 54(1)) runs only from the decision becoming final, not from filing.

Practical implications and examples

Example 1 – taxi service. You want to operate road motor passenger transport (taxi). You file a concession application and the documents for assessment by the transport authority. That body issues its opinion within 30 days. Only after a favourable outcome and after the decision becomes final do you obtain the trade licence, and the extract within 5 working days.

Example 2 – a negative opinion of the body concerned. For a concession linked to an assessment of reliability, the competent body issues a negative opinion. The Trade Licensing Office is bound by this opinion and rejects the application (Section 53(2)), even if all the other conditions would otherwise be met.

Example 3 – the responsible representative. A legal person submits a responsible representative for approval together with the application. If the proposed person meets the conditions, the Office decides on their appointment directly in the decision granting the concession (Section 53(3)).

What this means for you:

• Expect a longer processing time than for notifiable trades.
• Do not start your business until the decision becomes final, not on the day of filing.
• Submit the documents for the body concerned straight away; a missing part of them is what slows the proceedings down the most.
• Report changes of information within 15 days (Section 56(1)); the Office amends the decision under Section 56.

The administrative fee is CZK 1,000 on entry into trade business and CZK 500 for a further concession application or its amendment (Item 24 of Act No. 634/2004 Coll.).

Related context

Concessions are just one of the four categories. For an overview of which activity falls where, see the trade catalogue. The general procedure from the application to the extract is described in the guide on how to set up a trade. The general and special conditions for carrying on a trade, the appointment of a responsible representative and the reporting of changes under Section 56 are also relevant here. For a specific licensed (concession) trade, always check Annex No. 3, which determines the required qualification as well as which body issues the opinion.