Regulated trades: providing the certificate of competence

The Trade Act (Gewerbeordnung, GewO) distinguishes between free and regulated trades. The distinction determines whether registration is sufficient or whether a certificate must be provided first.

The certificate of competence

Regulated trades require professional competence, which, depending on the trade, is demonstrated through training, examination or relevant professional activity. The requirements arise from the respective access regulations. If formal proof is lacking, individual competence can be considered instead: the authority then examines whether the knowledge actually acquired is equivalent.

The managing director under trade law

Anyone who does not hold the competence themselves can appoint a person who meets it. This person must actually work in the business and be in a position to be active there accordingly – in the case of legal entities, additionally as an employee with corresponding employment or as a member of the body authorised to represent it. A purely nominal appointment does not meet the requirement and jeopardises the trade licence.

The underestimated point

Which activities a licence covers is decided by its precise wording. The fringe areas – ancillary rights, adjoining services, the interplay of several licences within one business – are regularly underestimated and are a frequent cause of complaints. Before expanding the range of services offered, it is therefore worth checking against the wording of the trade licence.