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Source: BUS Sachsen-Anhalt (Linie6PLus)

Apply for permission as an auctioneer

Description

Anyone wishing to auction off third-party movable property, third-party real estate or third-party rights on a commercial basis requires the permission of the competent authority. The permit may be subject to conditions if this is necessary for the protection of the general public, the contracting authorities or the tenderers.

In the case of partnerships (e.g. OHG, KG), the trader is any managing partner. In the case of legal entities (e.g. GmbH, AG), permission is granted to the legal entity.

As an auctioneer, you may not:

  • bid for yourself at your auctions or through another person or buy auction items entrusted to you,
  • allow relatives or your employees to bid at your auctions or to buy auction items entrusted to you,
  • bid for another person at your auctions or buy auction items entrusted to you, unless there is a written bid from the other person,
  • auction movable property from the group of goods that you carry in your commercial business, if this is not customary,
  • Auctioning things,
    • on which you have a lien, or
    • if they are part of the goods that you offer in open points of sale and that are unused or whose intended use consists in their consumption (consumer goods).

Prerequisites are:

  • personal reliability and
  • orderly financial circumstances.

You will not be granted permission if:

  • Facts justify the assumption that you, as the applicant, do not have the reliability required for the business.
    As a rule, you do not have the necessary reliability if you have been sentenced to imprisonment for a felony or for theft, embezzlement, extortion, fraud, embezzlement, money laundering, forgery of documents, receiving stolen goods, usury or for an offence against the Unfair Competition Act in the last five years before the application is filed.
  • You, as the applicant, live in disorderly financial circumstances.
    This is usually the case if insolvency proceedings have been opened against your assets or if you are entered in the register kept by the insolvency court or the enforcement court.
  • Identity card or comparable identification document (copy)
  • Non-EU citizens: residence permit (copy)
  • Proof of entrepreneurial legal form
    • Company headquarters in Germany:
      • Excerpt from the commercial register for registered company
      • If applicable, a copy of the articles of association (e.g. in the case of a partnership under civil law (GbR))
    • Company domicile abroad: documents from this country proving the legal form
  • Proof of personal reliability
    • Residence in Germany:
      • Certificate of good conduct
      • Excerpt from the Central Trade Register for natural and, if applicable, legal persons
    • Residence abroad: Documents from your home country that prove that you have the personal reliability to perform the desired service
    • In individual cases, the authority may request further documents that are suitable for making a statement about your personal reliability as an applicant.
  • Proof of orderly financial circumstances
    • Residence in Germany:
      • Excerpt from the debtor file
      • Certificate from the insolvency court
      • Certificate from the tax office in tax matters
    • Residence abroad: Documents from your home country that prove that you live in an orderly financial situation

You must apply for the permit before starting the activity. Only after the permit has been granted are you entitled to practice the trade.

Contact your municipality or independent city.

You must apply for permission for auctions in writing or in person at the competent authority.

After the exam, you will receive either permission or a rejection notice. A permit may be subject to certain conditions.

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

The authorities have rights of information and inspection vis-à-vis traders. At the request of the authorities, the persons concerned must provide the information necessary for the monitoring of business operations. In addition, the authorities are authorised to enter the business premises in order to carry out inspections and inspections.

Furthermore, as an auctioneer, you are subject to the requirements of the Auctioneer's Ordinance (VerstV) when exercising your trade. For example, you must:

  • in principle, at least two weeks before the auction, to draw up a list of the items to be auctioned, in which the auctioned goods of each client are to be uniformly marked
  • notify each auction in writing to the competent authority and the Chamber of Commerce and Industry in whose district the auction is to take place at least two weeks before the envisaged auction date, stating the place and time of the auction and the class of the goods to be auctioned
  • in principle, give the opportunity to inspect the auctioned item for a period of at least two hours
  • keep an account of each auction order and its processing

The competent authority shall, upon request, generally appoint particularly competent auctioneers publicly for certain types of auctions. As a publicly appointed auctioneer, you must take an oath that you will perform your duties conscientiously and impartially.

Bavarian State Ministry of Economic Affairs, Regional Development and Energy

The Chamber of Industry and Commerce (IHK) supports you.

The text was automatically translated based on the German content.

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