Carrying out public auctions (excluding forced auctions)
Field of activity No. 12 under the Trade Licensing Act.
Updated
What you need: Expertise plus a state authorisation — a concession from the trade licensing office.
- Licensed trade
- Field No. 12
- See conditions below
- 8 activity examples
Carrying out public auctions with the exception of forced auctions (i.e. public voluntary auctions) under Act No. 250/2023 Coll., on public auctions. This is a regulated trade (Annex 2 to the Trade Licensing Act) for which the licence arises on the day of notification, once the prescribed professional qualification is evidenced. Note: carrying out forced (involuntary) auctions is a separate licensed (concession) trade with stricter requirements.
Professional qualification under Annex No. 2 to the TLA (regulated by Sections 6 to 8 and 24 of the TLA), documented by one of the options:
a) university education (experience not required), or
b) higher professional education and 1 year of experience in auction or real estate activity, or
c) secondary education with a school-leaving examination and 2 years of experience in auction or real estate activity, or
d) a retraining certificate or another document evidencing professional qualification for the relevant work activity issued by an institution accredited under special legal regulations (or accredited by the MEYS or the relevant ministry) and 4 years of experience in auction or real estate activity, or
e) a certificate of attainment of the professional qualification Auctioneer, auction operator under the Act on the recognition of the results of further education (Act No. 179/2006 Coll.), or
f) documents under Section 7(5) of the Trade Licensing Act (recognition of professional qualifications, Directive 2005/36/EC).
Medical fitness and liability insurance are not required under the Trade Licensing Act. The trade is notified at the Trade Licensing Office and the licence arises on the day of notification (it is not a concession).
This trade authorises only public voluntary auctions. For forced (involuntary) auctions a separate concession "Carrying out forced auctions" is required, with stricter requirements as to experience.
Examples of activities
- public voluntary auctions of immovable property
- public voluntary auctions of movable property
- auctions at the proposal of the owner of the property
- organisation and conduct of the auction proceedings
- auctions of residential units and land
- drafting and publication of the auction notice
- making the knock-down by the auctioneer
- custody and handover of the auctioned property to the successful bidder
What the trade is and what it is for
The trade "Carrying out public auctions with the exception of forced auctions" is a regulated trade (Annex No. 2 to the Trade Licensing Act). It authorises you to commercially carry out public voluntary auctions under Act No. 250/2023 Coll., on public auctions – that is to organise and conduct auction proceedings in which a thing or a right is monetised by the auctioneer's knock-down to the bidder who made the highest bid.
A public auction is a publicly accessible process with a procedure precisely laid down by law (auction notice, auction security, bids, knock-down, protocol). As the auction operator you ensure the entire course of the process, see to equal conditions for participants and, after payment of the price, transfer the auctioned thing to the successful bidder. Because this is a regulated trade, the licence arises on the day of notification, once you have evidenced the prescribed professional qualification.
Important distinction. Since the recodification of auction law (Act No. 250/2023 Coll.), auction activity has been divided into a regulated trade and a concession. This regulated trade covers voluntary (public) auctions only. For forced (involuntary) auctions a separate concession "Carrying out forced auctions" is required, which has stricter requirements as to professional qualification (longer experience).
What falls under this trade (and what does not)
This trade covers in particular:
- carrying out public voluntary auctions of movable and immovable property at the proposal of the owner (or a person entitled to dispose of the property),
- preparation of the auction: drafting and publication of the auction notice, organisation of viewings of the subject of the auction,
- conduct of the auction proceedings by the auctioneer, making the knock-down, drawing up the protocol on the auction,
- handover of the subject of the auction to the successful bidder after payment of the price attained by the auction.
Boundaries with neighbouring activities. Beware of confusion with related activities that have their own regime:
- Carrying out forced auctions is a separate licensed (concession) trade (Annex No. 3 to the TLA) with stricter requirements as to experience (e.g. 3 years of experience for university education). This trade "with the exception of forced auctions" does not include forced auctions.
- Auctions in enforcement and in insolvency are carried out by court enforcement officers (bailiffs) and insolvency administrators under special acts; these are not a trade.
- Property valuation and real estate intermediation are separate trades.
Conditions for obtaining it under the law
You must meet the general conditions under Section 6 of the Trade Licensing Act – full legal capacity and a clean criminal record (Section 6 of Act No. 455/1991 Coll.). Medical fitness and liability insurance are not required under the Trade Licensing Act.
You also demonstrate a professional qualification under Annex No. 2 to the TLA (regulated by Sections 6 to 8 and 24 of the TLA). One of the following options is sufficient:
| Education | Required experience |
|---|---|
| a) university education | experience not required |
| b) higher professional education | 1 year in auction or real estate activity |
| c) secondary education with a school-leaving examination | 2 years in auction or real estate activity |
| d) retraining certificate (accredited institution) | 4 years in auction or real estate activity |
A certificate of the professional qualification Auctioneer, auction operator under the Act on the recognition of the results of further education (Act No. 179/2006 Coll.) is also recognised, as are documents under Section 7(5) of the TLA (recognition of qualifications under Directive 2005/36/EC).
You notify the trade at the Trade Licensing Office and the licence arises on the day of notification; it is not a concession, so no separate grant decision or opinion of a further authority is issued (Act No. 250/2023 Coll., on public auctions, falls within the competence of the Ministry for Regional Development). You do not have to hold the qualification personally – you may appoint a responsible representative under Section 11 of the TLA, who meets the conditions on your behalf. The same person may act as responsible representative for no more than 4 entrepreneurs.
How to notify or obtain the trade step by step
- Prepare the documents evidencing professional qualification (diploma, school-leaving certificate, document on experience, retraining) and an identity document.
- Complete the Unified Registration Form (URF) – here you submit the trade notification.
- Submit the notification at any municipal Trade Licensing Office, electronically via the rzp.gov.cz portal, or at a Czech POINT branch.
- Pay the administrative fee of CZK 1,000 (first entry into business), or CZK 800 for electronic filing.
- Wait for the entry. The office makes the entry in the Trade Register and issues an extract within 5 working days. The licence arises on the day of notification.
You will find a detailed general procedure in the guide How to set up a trade.
Documents and fees
- An identity document (identity card / passport).
- A document evidencing professional qualification under Annex No. 3 to the TLA (education + experience according to the chosen option).
- The completed URF (trade notification).
- Where applicable, a document on the appointment of a responsible representative (Section 11 of the TLA).
- Administrative fee: CZK 1,000 (first entry into business) / CZK 800 (electronic filing); CZK 500 for a further trade notification.
- Time limit: entry within 5 working days; the licence arises on the day of notification.
Frequently asked questions
Is it a craft, regulated, or licensed (concession) trade?
It is a regulated trade. You notify it at the Trade Licensing Office and evidence the prescribed professional qualification (Annex 2 to the TLA); the licence arises on the day of notification. Only the separate trade for forced auctions is a concession.
Can I carry out involuntary (forced) auctions under this trade?
No. This trade is expressly "with the exception of forced auctions" and covers only voluntary auctions. For forced (involuntary) auctions you must obtain a separate concession "Carrying out forced auctions", which requires longer experience (e.g. 3 years for university education).
Do I need a university degree?
You do not. For example, secondary education with a school-leaving examination and 2 years of experience in auction or real estate activity is sufficient, as is higher professional education and 1 year of experience, or accredited retraining and 4 years of experience. With university education no experience is required.
I do not have the required qualification. Can I still operate the trade?
Yes, you may appoint a responsible representative under Section 11 of the TLA, who meets the professional qualification on your behalf. One person may act as responsible representative for no more than 4 entrepreneurs.
How long does processing take and how much does it cost?
The administrative fee is CZK 1,000 on first entry into business (CZK 800 electronically), or CZK 500 for a further trade notification. The office makes the entry in the Trade Register within 5 working days and the licence arises on the day of notification.