over 2 years ago

Business license is a specific document that allows to conduct business and work in a specific line of business. Generally, the license is issued by the government, agency, or governmental institution. The need to obtain a permit before starting a specific trade is usually regulated by law.

Conducting businesses without a license when the law requires them to be acquired is illegal and the government inspector can impose a fine and require the cessation of activities unless the required license is obtained. Licensing usually relates to specifically regulated business areas, such as B. Banks, alcohol and cigarette trade, petroleum shops, provision of taxi services, security services, etc. When a business applies for a license, there are usually several requirements that need to be met to ensure that the business is conducted with a high level of professionalism and meets certain requirements correspond. The general purpose of licensing is to protect public interests, such as health and safety, and to control strategic or relevant industries.

License and Permission Many types of businesses require certifications or approvals beyond regular licenses. Compared to the license, the permits refer to the authorization to engage in an activity related and directly related to the activities of the company. For example, a fire permit if your business uses flammable materials or if your premises are open to the public, such as restaurants, shops and other public buildings. Permission to use parking if you provide taxi services, permission to start new construction or renovation, permission from environmental protection agencies if your business may impact the environment, etc.

Business activities that require a license or permit At the business incorporation and company incorporation stage, it is necessary to determine whether a license is required. When providing financial services such as B. banking, a license is usually required as the strict rules of EU law apply. The same applies to other money services in money transfer, financial institutions, insurance companies and insurance brokers, trading in bonds and securities, trading in jewelery and games of chance. In some jurisdictions, chartered accountants, lawyers, notaries and bailiffs require a license. Building work on the site requires the purchase of a permit. A different type of sales tax should be applied if some jurisdictions require a seller license and additional registration on the tax register, VAT payer register or the purchase of a tax exemption certificate.

Depending on the nature of the products, the licenses and permits may be required for different areas, for example for alcohol trade you may need a wholesale or retail license or a license for strong alcoholic beverages and beer. If the company conducts business related to the sale of excise products such as coffee, oil, tobacco or storage services for the above products, these activities require the acquisition of a license.

Pharmaceutics, medicine manufacture and activities related to addictive and psychotropic substances also require a specific license, which usually includes several criteria to be fulfilled, since the activities are directly related to human healthcare.

Commercial activities with explosives, pyrotechnics and other explosive materials, as well as all type of firearms and ammunition and other substances that are necessary for military purposes are strictly regulated and require a license in order to deal with. If the company provides transport related services such as cargo or passenger transportation via airways, railway, ships or motorways – a transportation license will be required in the majority of cases.

Mail services and wireless communications, social services, employment agencies, security companies, private detectives – all of the above require a license. Environment impacting activities such as geology, oil manufacturing, activities that may cause environment pollution, rubbish and waste disposal and recycling, activities with chemical substances and radioactive materials - also require a license.

Hotels, hostels, guest houses and other tourist-related locations as well as tourism operators and tourism agencies require a license.

Wood recycling, cultivation and cutting, land surveying services - require a license. Hunting and hunting-related activities require a license. The same applies to anglers. Production and distribution of strategic resources such as gas, electricity and water require a license. In each jurisdiction the list of commercial activities subjected to licensing may differ.

https://www.confiduss.com/en/services/corporate/legal/licenses-and-permissions/