Consequences of regulatory non-compliance - Part 2


Market participants in almost every industry need to be prepared to follow the state’s regulations concerning their respective business. Regardless of whether your business is a global pharmaceutical company, a fashion store, or a rental car company: your business has to follow the rules of the trade, otherwise there will be consequences.

But what are the consequences of not following the rules of your trade in Austria? Learn more in our three-part series on the importance of regulatory compliance.

Part 2: Revocation of the trade license

Businesses in Austria generally need some form of permit to conduct their business. For most trades and industries that permit is a trade permit (Gewerbeberechtigung) and this trade permit may be more or less easy to obtain (mostly depending on the type of trade but also on the form in which the trade is conducted). However, one general requirement (details vary) for conducting almost every business is that the involved persons need to be reliable in the eye of the law in order to receive and keep a trade permit respectively hold the position as trade manager (gewerberechtlicher Geschäftsführer). Repeated violations of regulations governing that trade can result in the authority initiating revocation proceedings due to the loss of reliability. The same can apply in cases of severe violations of regulations not specifically governing the trade in question.

Repeated violations can therefore cause the need to restructure / restaff operations or – in the worst case – the shutting down of the operations.

Note, similarly to these trade law regulations a company might lose its “reliability” in terms of the Public Procurement Act: unreliable companies may be excluded from procurement proceedings.

At Sabadello Legal we have extensive experience in defending businesses and managers in proceedings relating to alleged non-compliance with regulatory provisions. Aside from defending our clients in civil and public-law litigation, we have a strong track record in advising our clients on how to set up effective compliance and control systems to prevent transgressions.

Contact and questions:
RA Mag. Andreas Sabadello +43 1 9971037 office@sabadello.legal

Back button
NEXT NEWSNext icon