Licenses, Permits, Approvals

When starting a business you  should consider the possible issues related to the permissions associated with the  sale of goods or services. Some activities require state permits  from the entrepreneur. The permit may take the form of concession, license, permit or entry into the  register of activities.

The legislature may also stipulate that the entrepreneur or his employees will need to have  professional qualifications to operate.

There are sometimes also discretionary requirements – dependent on the will of the official. For example, an entrepreneur leading petrol station must provide guarantees of proper exercise activities.

The main source of law defining when the consent of the state is required,  are acts governing these legal issues.

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Permits

Concessions are the most demanding type of a state permission. To acquire them, the trader is obliged to demonstrate well trained personnel meeting the technical standards for the infrastructure, often the concession fee and a big capital are a must.

Activities normally requiring concessions:

  • energy trading
  • protection of people and property
  • air transport
  • gambling
  • related to the radio and television
  • mining activities and extraction of gas and oil
  • involving the production and marketing of weapon, amunitions and military or police technology

Licenses

Licenses are becoming less common form of permits. They are associated with fewer requirements than a concession, but also involve the fulfillment of additional technical conditions and unexpected controls. The person convicted will not be granted a license.

Activities normally requiring professional licenses:

  • road transport
  • rail transport
  • being a trustee in bankruptcy masses

Permits

Permits are considered the least demanding form of consent of the state. The most common permits are linked with the application to the main office and then possibly to the control of another office for example SANEPID or KNF. Only in certain cases, permits require compliance with many standards and number of procedures.

The most popular type of permit requested by the entrepreneur is one to sell alcohol. Such authorization shall be filed in the office, then it  must be examined by the commission to make sure if there is no high or primary school nearby  and whether other  standards are met, such as a separate toilet for staff and visitors.