Licensed trades: these industries need a permit before they start

Anyone who wants to open a security company, a real estate, insurance or financial investment brokerage, or a restaurant or bar serving alcohol cannot simply get going: these activities count among the licensed trades and may only be taken up after official permission has been granted.

In brief: For regulated activities such as security services, real estate, insurance and financial investment brokerage or hospitality with alcohol service, the Trade Regulation Code (GewO, §§ 34a–34i, 33c ff.) and the Restaurant Act (GastG) require prior permission with proof of reliability, professional competence, professional liability insurance and register entry. All founders and businesses that want to take up such an activity are affected. Anyone who operates without the permit risks a ban on trading, a fine or criminal penalties.

Who is affected by the permit requirement?

Founders and existing businesses that want to take up a regulated activity within the meaning of GewO §§ 34a–34i, 33c ff., the GastG or related laws are affected. These include security services, real estate brokerage, insurance brokerage, financial investment brokerage and hospitality with alcohol service, among others. Anyone planning one of these activities must clarify before the first assignment or the opening whether a permit is required – regardless of whether the business is to be run as a side business or as a main business. Even extending an existing business to one of these activities triggers the duty to check again.

Which trades count as licensed activities?

In §§ 34a–34i and 33c ff., the GewO lists a number of activities that require a special permit, including security services, real estate brokerage, insurance brokerage and financial investment brokerage. In addition, the GastG regulates the permit requirement for the commercial serving of alcohol. Other related laws may impose additional requirements depending on the activity. What all these trades have in common is that the legislature regards them as particularly sensitive for consumers or for public safety and therefore requires an official review in advance before the activity may even be taken up.

What do you need to do in practice?

The path to the permit can be summarised in five steps:

1. Check whether the planned activity requires a permit (GewO §§ 34a ff./33c ff., GastG, etc.).
2. Assemble the required evidence (reliability, professional competence, insurance).
3. Apply for the permit with the competent authority/IHK before starting the activity.
4. Where applicable, make the entry in the relevant broker register.
5. Comply with and document ongoing continuing education duties.

The evidence required differs by trade but generally includes proof of personal reliability, a professional competence exam and the taking out of professional liability insurance. For brokerage activities, an entry in a broker register is usually required as well. Which of these obligations apply to your company specifically is shown by a tool such as Company Audit.

By when must the permit be in place, and how often must it be renewed?

The permit must be in place before the first assignment or before the business opens – the application often needs several weeks' lead time, so it should be submitted early. Professional competence exams, for example at the IHK, are often a prerequisite for the permit and should therefore be scheduled in good time. The duty does not end with the grant, however: in some of the trades mentioned there is an ongoing continuing education duty, for example of 15 hours per year or 20 hours within three years. This training must be documented in order to keep the permit permanently.

What are the consequences of breaching the permit requirement?

Anyone who takes up a licensed activity without the required permit risks a ban on trading by the competent authority. In addition, a fine or criminal penalties are possible. Even someone who initially holds the permit but fails to meet the ongoing continuing education duty or can no longer provide required evidence such as professional liability insurance risks losing the permit and thus the end of business activity in this field.

Frequently asked questions

Which trades need a permit under the GewO?

Among others, security services, real estate, insurance and financial investment brokerage and hospitality with alcohol service – regulated in GewO §§ 34a–34i, 33c ff. and in the GastG.

Must the permit be in place before the first assignment?

Yes. The permit must have been granted before the activity is taken up. Since the application often needs several weeks' lead time, it should be submitted well before the planned start.

What evidence does the authority require for the permit?

As a rule, proof of reliability, a professional competence exam, the taking out of professional liability insurance and – for brokerage activities – entry in the relevant broker register.

Does the continuing education duty apply equally to all licensed trades?

No, it exists only in part and depends on the respective trade, for example 15 hours per year or 20 hours within three years. Which rule applies in an individual case must be asked of the competent authority or the IHK.

What happens if someone works without a permit?

The authority can ban the business. In addition, a fine or criminal penalties are possible – regardless of whether the breach was out of ignorance or deliberate.

Source: GewO §§ 34a–34i, 33c ff. · GastG. This article is general information and does not replace legal advice in an individual case. As of: July 2026.