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Trade requiring a license: Prohibition due to unreliability
Source: Zuständigkeitsfinder Schleswig-Holstein (Linie6PLus)
One of the prerequisites for carrying out a business requiring a license is your reliability under trade law. If you are found to be unreliable during the licensing procedure or during ongoing business operations, the competent authority may prohibit you from exercising your trade.
Unreliability can be assumed if you cannot guarantee that you will be able to exercise the trade properly in the future. This is the case if, among other things
- Non-payment of public duties, such as wage tax, VAT, social security contributions,
- tax arrears,
- illegal employment of employees,
- relevant convictions (e.g. for embezzlement, embezzlement, mistreatment of persons under protection such as trainees) or
- in the event of a threat to public safety and order, for example due to poor food hygiene.
As a rule, the competent chamber is consulted before the prohibition order is issued, unless there is imminent danger. If the chamber also considers a prohibition to be necessary and you do not make any further efforts, you will receive a formal prohibition notice. The following options are available:
- Partial prohibition: Prohibition of certain trades or prohibition of the employment of employees subject to social security contributions,
- Full prohibition: Prohibition of any commercial activity,
- Extended prohibition: Prohibition of any commercial activity and activity as managing director, operations manager or similar.
A legally binding trade ban applies indefinitely and throughout Germany. The prohibited activity must be stopped immediately and the business must be deregistered. After one year at the earliest, an application for re-licensing can be submitted. The prerequisite for re-authorization of the prohibited activity is that the unreliability no longer exists. The competent chamber will also be consulted on this.
Who should I contact?
To the municipal, local or city administration in whose district the business is located.
Which documents are required?
- Identity card or passport,
- Extract from the commercial, association or cooperative register, if applicable,
- Certificate of good conduct/excerpt from the central trade register, if applicable,
- Trade license, if applicable,
- Proof of showman's liability insurance, if applicable.
What are the fees?
Fees are charged in accordance with the state ordinance on administrative fees. Detailed information can be obtained from the responsible office.
- § Section 35 of the Trade, Commerce and Industry Regulation Act (Gewo),
- State Ordinance on Administrative Fees (General Fee Schedule) - VwGebV.
What else should I know?
Are you affected by a trade ban? Find out about the advice offered by the relevant chamber! A distinction must be made between a trade ban and a business ban in accordance with Section 16 (3) of the Crafts Code (HwO).
The text was automatically translated based on the German content.