The business license is a specific document that enables the conduct of business and operation in a specific business area. Generally, the license is issued by the government, agency, or government agency. The requirement to obtain a license prior to starting a particular business is usually stipulated by law.
Doing business without a license when the law requires it to be purchased is illegal and the government inspector may impose a fine requiring the cessation of activities unless the required license is obtained. Licenses usually relate to specifically regulated business areas such as banks, alcohol and cigarette trading, oil business, provision of taxi services, security services, etc. When applying for a license, several requirements must usually be met so that the business is guaranteed carried out with a high level of professionalism and will meet the specific requirements. The overall object of licensing is the protection of public interests such as health and safety as well as the control of strategic or relevant industries.
License and PermissionMany types of businesses require certification or approval in addition to regular licenses. In contrast to the license, the permits relate to the authorization to carry out an activity that is related to and directly related to the activity of the company. For example, a fire safety permit if your company uses flammable materials or if your premises are open to the public, such as restaurants, shops and other public buildings. Permission to use the parking lot if you offer taxi services, permission to start a new construction or renovation, and permission from environmental protection agencies if your business can harm the environment, etc.
Doing business that requires a license or permitAt the company formation and company formation phase, it must be determined whether a license is required. When providing financial services, such as B. Banking, a license is usually required as the strict regulation of EU law applies. The same applies to other monetary services, which include money transfers, financial institutions, insurance and insurance brokers, trading in bonds and securities, trading in jewelry and gambling. A license for accountants, lawyers, notaries and bailiffs is required in some jurisdictions. A permit is required for construction work on the site. Another type of sales tax should be applied if some jurisdictions require a seller's license plus registration in the tax register, sales tax payer register or the purchase of a tax-free certificate.
Depending on the type of 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 highly alcoholic beverages and beer. If the company is engaged in business related to the sale of excise products such as coffee, oil, tobacco, or provides 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.
License acquisitionBefore it is fully operational, the company should determine whether the planned activity requires a permit so that the company can, if necessary, submit an application to the responsible institution. In order to obtain a license, documents must be drawn up confirming that all criteria have been met. Depending on the type of license, not only conditions may be met for the company, but employees or employees of the company may also be required to undergo certain procedures.
After all documents are ready, they must be submitted to the responsible institution. After revising the submitted documents, the institution checks whether the documents comply with the laws and regulations. If so, a license is granted. Purchasing a license often requires payment. The license can be issued for one year, five years or another term as well as for an indefinite period.
Possible penalties for doing business without a licenseIf the company does business without a license or authorization, the company can be punished by the government officials. First, a fine can be imposed on the company as a sanction. Company officials can also be punished. Second, the company's operations can be suspended until the company acquires a license. If the activity is illegal and the company does not meet the requirements for obtaining the license, the company can be permanently suspended or even terminated. If the license or permit has expired, the company may be fined and asked to renew the license as soon as possible.