Production and processing of fuels and lubricants and the distribution of motor fuels
Field of activity No. 6 under the Trade Licensing Act.
What you need: Expertise plus a state authorisation — a concession from the trade licensing office.
- Koncesovaná živnost
- Field No. 6
- See conditions below
- 8 activity examples
A licensed (concession) trade (field No. 6) for the production and processing of fuels and lubricants and for the distribution of motor fuels, for example operating a filling station. It requires a concession granted in administrative proceedings, a professional qualification and, for the distribution of motor fuels, an opinion of the customs office.
The trade is a licensed (concession) trade (Annex No. 3 to the Act) – notification is not enough; the authorisation arises only on the day the decision granting the concession becomes final (s. 10(1)(b)). The legal regulation of this trade is based on ss. 6 to 8 and s. 24 of the Trade Licensing Act.
Professional qualification for the production and processing of fuels and lubricants (one of the variants):
- university education in the field of chemistry + 1 year of practice in the field
- higher vocational education in the field of chemistry + 3 years of practice in the field
- secondary education with a school-leaving examination in the field of chemistry + 3 years of practice in the field
- a retraining certificate or another document on professional qualification + 4 years of practice in the field
- the professional qualification of a chemist under Act No. 179/2006 Coll. + 4 years of practice in the field
- documents under s. 7(5)(a) to (e) of the Trade Licensing Act
Professional qualification for the distribution of motor fuels (one of the variants):
- university education + 1 year of practice in the field
- higher vocational education + 2 years of practice in the field
- secondary education with a school-leaving examination + 3 years of practice in the field
- secondary education (without a school-leaving examination) + 4 years of practice in the field
- the professional qualification of a chemist under Act No. 179/2006 Coll. + 4 years of practice in the field
For the distribution of motor fuels, an opinion of the customs office (the relevant state administration authority under Annex No. 3) is additionally required.
The professional qualification need not be met by the entrepreneur in person – it can be ensured by appointing a responsible representative (s. 11), who is approved by the Trade Licensing Office in the case of a concession. One person may perform the function of responsible representative for at most four entrepreneurs.
Examples of activities
- operation of a public motor fuel filling station
- wholesale distribution and sale of motor fuels
- production of lubricating oils and plastic lubricants
- processing of crude oil and oil fractions into fuels
- blending and regeneration of fuels and lubricants
- production and dispensing of diesel and petrol
- storage and dispatch of motor fuels within distribution
- production of biofuels and blended fuels
What the trade is and what it is for
The trade "Production and processing of fuels and lubricants and the distribution of motor fuels" is a licensed (concession) trade listed in Annex No. 3 to the Trade Licensing Act under field No. 6. It covers two substantively close areas: on the one hand the production and processing of fuels and lubricants (for example the production of diesel, petrols, lubricating oils and plastic lubricants, or the processing of oil fractions) and on the other hand the distribution of motor fuels, which typically includes operating a filling station and wholesale supplies of motor fuels.
This is the strictest category of trades. Notification is not enough for this business – you need a concession, i.e. a permit that the Trade Licensing Office decides on in administrative proceedings. The reason for the regulation is the flammability and the environmental and tax sensitivity of these commodities, which is why the customs office is also involved in the distribution of motor fuels.
What falls under this trade (and what does not)
The trade covers in particular:
- the production of fuels and lubricants (fuels, lubricating oils, plastic lubricants, their blending and treatment),
- the processing of crude oil and oil products into fuels,
- the distribution of motor fuels – operating filling stations and wholesale sale and supplies.
Boundary with neighbouring trades. The mere production of coke, crude tar and other solid fuels is an unqualified (free) trade (field No. 16 of Annex No. 4), not this concession. The mere retail sale of goods in a filling station shop (food, drugstore items) falls under the unqualified (free) trade "Wholesale and retail". Road transport of motor fuels by a third-party carrier is the separate licensed (concession) trade "Road motor transport" (field No. 8). Operating a storage facility and handling hazardous chemical substances may also be subject to other special regulations (the chemical and water acts, the act on air protection). If you are unsure how to classify your activity, check the scope with the Trade Licensing Office.
Conditions for obtaining it under the law
You must meet the general conditions under s. 6 of the Trade Licensing Act – full legal capacity and a clean criminal record. The act does not require medical fitness or liability insurance for this trade. The procedure and conditions of this licensed (concession) trade are governed in particular by ss. 6 to 8 and s. 24 of the Trade Licensing Act.
You must also prove a professional qualification under Annex No. 3, separately for each regulated area:
| Area | Examples of qualification variants |
|---|---|
| Production and processing of fuels and lubricants | University in the field of chemistry + 1 year of practice; higher vocational in chemistry + 3 years; secondary with a school-leaving examination in chemistry + 3 years; retraining or the professional qualification of a chemist (Act No. 179/2006 Coll.) + 4 years |
| Distribution of motor fuels | University + 1 year of practice; higher vocational + 2 years; secondary with a school-leaving examination + 3 years; secondary without a school-leaving examination + 4 years; professional qualification of a chemist + 4 years |
For the production and processing of fuels and lubricants, the qualification can also be proven by documents under s. 7(5)(a) to (e) of the Trade Licensing Act. For the distribution of motor fuels, an opinion of the customs office as the relevant state administration authority is additionally required.
The entrepreneur need not have the expertise in person. It can be ensured by a responsible representative under s. 11 – a natural person who meets the qualification conditions and whom, in the case of a licensed (concession) trade, the Trade Licensing Office approves directly in the decision granting the concession. One person may be a responsible representative for at most four entrepreneurs.
How to notify or obtain the trade step by step
For a concession you do not submit a notification, but a concession application on the Unified Registration Form (URF):
- Fill in the URF and submit a concession application – in person at any Trade Licensing Office (the municipal trade licensing office / Czech POINT) or electronically via the rzp.gov.cz portal.
- Provide documents on professional qualification (your own or those of a responsible representative) and the supporting documents needed for the opinion of the customs office for the distribution of motor fuels.
- Pay the administrative fee of CZK 1,000 (first entry into business), or CZK 500 for a further concession.
- The Trade Licensing Office will request an opinion of the customs office; it is bound by that opinion (s. 52(1)) – in the event of disagreement it will reject the application.
- A concession is usually decided within 30 days (in more complex cases within 60 days). The authorisation arises only on the day the decision becomes final, not on submission of the application.
- Within 5 working days of the decision becoming final, the office registers the trade in the register and issues a register extract (s. 54(1)).
The general procedure is described in the guide on how to set up a trade.
Documents and fees
- the completed URF – concession application,
- proof of identity, or a criminal record extract (the office usually verifies the clean criminal record itself),
- documents on professional qualification under Annex No. 3 (education + practice), or on the qualification of a responsible representative and their consent,
- supporting documents for the opinion of the customs office (for the distribution of motor fuels),
- administrative fee of CZK 1,000 (first concession) / CZK 500 (further concession or amendment).
Frequently asked questions
Is it enough to submit the application for me to start doing business?
No. For a licensed (concession) trade the authorisation arises only on the day the decision granting the concession becomes final (s. 10(1)(b)). The day of submitting the application is not enough to start the business.
Why is the customs office needed for the distribution of motor fuels?
Motor fuels are subject to excise duty and special record-keeping. Annex No. 3 therefore requires an opinion of the customs office, by which the Trade Licensing Office is bound under s. 52(1).
Can I have a concession only for the distribution of motor fuels without production?
Yes. The subject of business can be granted in a partial scope – only for the distribution of motor fuels, only for the production and processing of fuels and lubricants, or for both. The qualification is proven for the part you wish to operate.
Do I have to have the vocational education in person?
No. The professional qualification can be ensured by a responsible representative under s. 11, whom the Trade Licensing Office approves in the case of a concession. In doing so, one person may be a responsible representative for at most four entrepreneurs.
How long does processing take?
A concession is usually decided within 30 days, to which the customs office's time limit of up to 30 days for its opinion may run. The actual time is therefore longer than for notifiable trades.
Sources
- Ministry of Education – database of regulated activities (trade detail)
- Trade Licensing Act No. 455/1991 Coll. (consolidated text)
- Ministry of Industry and Trade (the recognition authority for professional qualification, Na Františku 32, 110 15 Prague 1)