Auction Business; Application for a License

The auction of third-party movable property, third-party real property, or third-party rights is subject to authorization. 

Auctioneers are generally subject to certain prohibitions; for example, they may not bid on their own behalf—either personally or through another person—at their own auctions, nor may they purchase auction items entrusted to them, nor may they auction movable property from the range of goods they carry in their business, unless this is customary.

Furthermore, in the course of conducting business, the auctioneer is subject to the provisions of the Auctioneer Regulation (VerstV); for example, he must

• prepare a list of the items to be auctioned no later than two weeks before the auction, in which the auction goods of each consignor must be uniformly identified
• notify the competent authority of each auction no later than two weeks before the scheduled auction date, in writing or electronically, specifying the location and time of the auction as well as the type of goods to be auctioned
• provide an opportunity to inspect the auctioned goods for a period of at least two hours
• Keep records of each auction order and its execution

In the case of partnerships, each managing partner is considered a business operator; in the case of legal entities, the permit is granted to the legal entity itself.

Auctioneers with special expertise, with the exception of legal entities, may be publicly appointed by the competent authority (see “Related Topics”).

When assessing the required special expertise, educational and qualification certificates issued in the country of origin must also be recognized. If the applicant is authorized to conduct auctions in the country of origin,

• which is reserved there for persons possessing expertise that essentially corresponds to the special expertise required, or
• has worked full-time as a professional auctioneer for two of the last ten years and the submitted evidence shows that the applicant possesses above-average expertise that essentially corresponds to the special expertise required under § 34b(5) of the Trade Regulation Act (GewO),

their expertise shall be recognized.

If there are significant deviations between the content of the applicant’s prior training or professional experience and the requirements set forth in § 34b(5) of the Trade Regulation Act (GewO), the applicant may be required, at his or her discretion, to take a qualification examination or complete an adaptation course.

The authorities have the right to request information from and inspect business operators. Upon request by the authorities, the parties concerned must provide the information necessary for the supervision of business operations. Furthermore, the authorities are authorized to enter the business premises to conduct inspections and examinations there.

In addition to obtaining a license, the business must be registered with the competent municipality.

The requirements for obtaining a license are that the business operator be of good character and have sound financial standing.

The applicant’s good character is verified by means of a certificate of good conduct issued by the authorities and information from the Central Trade Register.

Sound financial standing is determined based on information regarding entries in the registry maintained by the insolvency court or the enforcement court.

License for EU Citizens

The business operator’s good character and sound financial standing are verified using documents issued in the country of origin that demonstrate compliance with the requirements for good character and sound financial standing. In such cases, it may be required that the documents be submitted as certified copies accompanied by a certified German translation. If such documents are not issued in the country of origin, they may be replaced by a sworn statement from the business operator or by comparable legal acts under the law of the country of origin.

When applying for public appointment, proof of training and qualifications from the country of origin must be submitted. If necessary, a qualification examination or an adaptation course may be required.

Permit for Non-EU Citizens

A residence permit authorizing the pursuit of self-employment is generally required.

With regard to good character, the applicant is generally required to submit an official certificate of good conduct or an extract from the criminal record (criminal record) from their home country or an equivalent document and/or a certificate of good conduct for official purposes and information from the Central Trade Register. If, based on the foreign national’s previous residence, it can be assumed that the aforementioned certificates and documents no longer contain—or do not yet contain—facts relevant under commercial law, the requirement to submit the foreign or German certificates may be waived.

Sound financial standing is determined on the basis of a certificate of non-insolvency from the home country and, if applicable, information regarding entries in the register maintained by the insolvency court or the enforcement court.

• Valid ID card or passport
• Proof of sound financial standing
  Information regarding entries in the register maintained by the insolvency court or the enforcement court (Section 26(2) of the Insolvency Code, Section 915 of the Code of Civil Procedure)
• Proof of Good Standing: Certificate of Good Conduct for government agencies (Section 30(5) of the Federal Central Register Act) and information from the Central Trade Register (Section 150(5) of the Trade Regulation Act)
• If an authorized representative is present: a written power of attorney and identification for both the principal and the authorized representative
• Documents for property developers and construction managers for registered companies, civil law partnerships, and limited liability companies (GmbH) in the process of being formed:
  
  • For registered companies (including GmbHs): an extract from the commercial register or comparable registration documents from abroad (with a German translation),
  • for civil law partnerships: partnership agreement,
  • for a GmbH in the process of being formed: a copy of the notarized articles of incorporation and a power of attorney from the founders stating that business operations are to commence prior to entry in the commercial register.
• For EU citizens: a certified copy of the certificate of good conduct from the country of origin, along with a certified German translation;
  If applicable, substitution with an affidavit or comparable actions
• For EU citizens: Proof of stable financial circumstances
  A certified copy from the country of origin and a certified German translation thereof, as well as, if applicable, a statement from the insolvency court confirming that the debtor is not subject to insolvency proceedings, and information from the debtor registry of the central enforcement courts (Section 26(2) of the Insolvency Code, §§ 882b et seq. of the Code of Civil Procedure); where applicable, these may be replaced by an affidavit or similar declaration
• For EU citizens: Documents required for auctioneers in the case of a registered company, a civil law partnership, or a limited liability company (GmbH) in the process of being formed
  

  For registered companies (e.g., GmbH): an extract from the commercial register or comparable registration documents from abroad (with a German translation); for civil law partnerships: the partnership agreement; for a GmbH in the process of being formed: A copy of the notarized articles of incorporation and a power of attorney from the founders stating that business operations are to commence prior to entry in the commercial register

• For EU citizens applying for a public appointment: proof of education and qualifications from the country of origin; if applicable, proof of passing an aptitude test or completing an adaptation course
• For non-EU citizens: a residence permit that allows for self-employment
• For non-EU citizens: Proof of good character
  

  An official certificate of good conduct or character, or an extract from the criminal record of the applicant’s home country, or an equivalent document, and/or a certificate of good conduct for government agencies and a report from the Central Trade Register

• For non-EU citizens: Proof of sufficient financial resources
  Certificate of non-insolvency from the home country and, if applicable, information regarding entries in the register maintained by the insolvency court or the enforcement court (Section 26(2) of the Insolvency Code, Section 915 of the Code of Civil Procedure)

Fee: 50 to 1,000 euros in accordance with the Schedule of Fees under the Cost Act (Rate No. 5.III.5/13.1)