Auctioneering trade; application for a license by non-EU citizens

The auctioning of third-party movable property, third-party land or third-party rights is subject to authorization. Movable property also includes fruit on the stalk and wood on the trunk.

The auctioneer is generally subject to certain prohibitions. For example, he may not bid for himself or through another person at his auctions or buy auction goods entrusted to him or auction movable goods from the range of goods he carries in his commercial business, unless this is customary.

Furthermore, the auctioneer is subject to the requirements of the Auctioneers Ordinance (VerstV) when practicing his trade, e.g. he must

• prepare a list of the items to be auctioned no later than two weeks before the auction, in which the auctioned items of each consignor must be uniformly identified
• notify the competent authority and the Chamber of Industry and Commerce in whose district the auction is to take place in writing of each auction at least two weeks before the planned auction date, stating the place and time of the auction and the type of goods to be auctioned
• provide the opportunity to inspect the goods to be auctioned for at least two hours
• keep a record of each auction order and its execution

In the case of partnerships, every managing partner is a trader; in the case of legal entities, permission is granted to the legal entity.

Particularly competent auctioneers, with the exception of legal entities, can be publicly appointed by the competent authority (see "Related topics").

The authorities have rights of information and inspection vis-à-vis traders. At the request of the authorities, the parties concerned must provide the information required to monitor business operations. The authorities are also authorized to enter the business premises in order to carry out inspections and visits.

In addition to obtaining a permit, you must also register the business with the responsible municipality.

In principle, a residence permit is required that allows self-employment.

Permit requirements are reliability and orderly financial circumstances of the trader.

With regard to reliability, applicants are generally required to submit an official certificate of good conduct or good character or an extract from the criminal record of their home country or an equivalent document and/or a certificate of good conduct for authorities and information from the central trade register. If, based on the foreigner's previous residence, it can be assumed that the aforementioned certificates and proofs no longer or not yet contain facts of significance under trade law, the foreign or German certificates may be waived.

The orderly financial circumstances are determined on the basis of a certificate of freedom from insolvency from the home country and, if applicable, on the basis of information on entries in the register to be kept by the insolvency court or the enforcement court.

• Non-EU foreigners: residence permit that allows self-employment
• valid identity card or passport
• Proof of reliability
  Official certificate of good conduct or character or extract from the criminal record of the home country or an equivalent document and/or a certificate of good conduct for authorities (Section 30 (5) of the Federal Central Criminal Register Act) and information from the Central Trade Register (Section 150 (5) GewO).
• Proof of orderly financial circumstances
  Certificate of freedom from insolvency from the home country and, if applicable, information on entries in the register to be kept by the insolvency court or the enforcement court (Section 26 (2) Insolvency Code, Section 915 Civil Procedure Code)
• in the case of power of attorney: a written power of attorney and identification of the principal and the authorized representative
• for registered companies, civil law companies and limited liability companies:
  
  • for registered companies: Extract from the commercial register or comparable registration documents from abroad (with German translation),
  • for companies under civil law: articles of association,
  • for a GmbH in formation: a copy of the notarized articles of incorporation and a power of attorney from the founders stating that the business is to commence before entry in the commercial register.

Permit: 50 to 1,000 euros in accordance with the Schedule of Costs under the Costs Act (Tariff No. 5.III.5/13.1)