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2.4 Trade licensing of physical entities

The business based on the Trade License Ownership is in the Trades Licensing Act defined as follows :
  • systematic activity – it requires a continuous or regularly repeated running of the business,
  • carried out independently by the enterpriser – business enterprise is not considered an activity which is decided by somebody else
  • carried out in one own’s name – it means that the enterpriser is running business under his/her business name
  • carried out at one own’s responsibility – the enterpriser is bearing the risk for his/her business results, he/she is responsible for assumed liabilities even for a potential losses from his/her business or even for bankruptcy
  • for the purpose of gaining profit – this is the main aim of business enterprise whereby profit is considered a motive, while the law does not require the profit to be really gained, it is enough if the enterpriser carries out his/her activity with the intention of gaining profit
  • under the conditions set by the Trades Licensing Act.

  • Defining of the business based on the Trade License Ownership is the so-called negative definition. Under the business based on the Trade License Ownership can be understood whatever business activity if it is not excluded from the business based on the Trade License Ownership according to the law, even if it is not mentioned in the law or if it is not in conflict with good manners.

    General terms of the business based on the Trade License Ownership run by physical entities are :
  • achieving the age of 18
  • competency to perform legal acts
  • impeccability (proved by the extract from the Penal Register of the Attorney Generalship)

  • An impeccable person is not considered the one who has been sentenced for an economic criminal act, a criminal act against property or any other criminal act committed wilfully, of which the subject matter is related to the subject of business.

    To the particular terms belong specialized skills or other skills. The examination of these conditions of specialized skills (stated in the appendix of the Law) secures the protection of public interest. The lack of specialized skills of the enterpriser may be substituted by the nomination of a responsible representative. The responsible representative is a physical entity who is in charge of the skilled running of the business based on the Trade License Ownership. This representative must be in a labour-law relation to the enterpriser when running the the business based on the Trade License Ownership (this does not apply to a husband and a wife). The responsible representative must fulfil general and particular terms of running the business based on the Trade License Ownership and must be the resident of SR.

    In the Trade Licensing Act the business based on the Trade License Ownership is divided according to various aspects. According to the way of acquiring the trade permission, the business based on the Trade License Ownership is divided into :
  • reporting trades ,
  • licensed trades

  • The reporting trades are according to the requirements for specialized skills divided into :
  • craft trades,
  • linked trades,
  • free trades

  • The reporting trades may be run after the accomplishment of conditions on the basis of reporting to the Trade Licensing Office. A physical entity is obliged to prove specialized skills (in case it is required by a legal regulation), attach the extract from the Penal Register and accomplish another terms set by the law. Specialized skills are not supposed to be proved by the free reporting trades; it suffices to accomplish the general terms and conditions.

    Craft trades are considered those activities which are determined by specialized skills acquired by education in the specialization (branch of business). Specialize skills (ability to carry them out) is proved :
  • by a skill certificate
  • by another certificate about completing educational specialization (school-leaving certificate, university diploma, certificate of performed qualification examination) and
  • by the evidence of at least 3 years performed practice in the specialization

  • Linked trades are more demanding activities whereby the specialized skills are regulated by special regulations. The Law exactly determines the conditions for a particular licensed trade, i.e. for every trade separately. The linked trades are described in the appendix no. 2 of the Trade Licensing Act. The linked trades are e.g. decantation of precious metals, eye optics, and teaching of foreign languages, chimney examination, massage service, tourist guide, and real-estate activity.

    To the licensed trades belong demanding trades; the permission of those requires an accomplishment of certain terms and conditions. Specialized skills for these trades are regulated by the special regulations. A particular condition is reliability that is examined in reference to the subject of business considering the life protection, the health protection, the protection of property rights and other rights of personal and public interests. The condition of reliability is not accomplished e.g. by person who has a clean extract from the Penal Register but is known for his/her alcohol and drug addiction. The basic feature of the licensed trades is the necessity of official permit. Contrary to the reporting trades, where the enterpriser demands a trade permission by reporting (one-sided legal act), the licensed trades are not to be demanded and the person interested have to ask the local Trade Licensing Office, which will decide about the application within 30 days since applying, for a permission – “a concession (or a license)”. Before the decision is made, the Trade Licensing Office is verifying the accomplishment of all the conditions for performing the licensed trades. If it is required to have a qualification, permission or references to operate the licensed trades, then the Trade Licensing Office is bound to this. E.g. an exchange office has to have a currency license required according to the Foreign Exchange Act. A concession (license) is the permission of the Trade Licensing Office to perform licensed trades. The licensed trade permission papers are the license deed and the extract from the Trades Register (the Small Business Register). The licensed trades are described in the appendix no. 3 of the Trade Licensing Act. The licensed trades are e.g. purchasing, selling of guns and munitions and their transport, operation of shooting ranges, developing and producing of guns and munitions, operation of burial places, of exchange offices, carrying business.

    All sole traders are registered in the Trades Register (the Small Business Register). It is a public list where all important data concerning the business subjects who have been issued trade permission are registered. It is possible to find it on the internet at www.zrsr.sk.
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