Licence leasing makes sense if a business in Austria requires a trade licence but the necessary proof of qualification is not (yet) available within the company or no suitable person is available to act as a manager under trade law. In such cases, appointing a manager under trade law can be a practical solution, provided that the legal requirements are met and the function can actually be performed.

As a managing director under trade law, I make my licence available for hotels, restaurants or travel agencies, provided that the appointment is legally possible in the specific constellation and the role is integrated into the business in such a way that it can actually be performed with clear responsibilities and sufficient access to information. Cooperation usually begins with a structured initial review of the company’s situation, operations and economic conditions, as well as a clear definition of roles and responsibilities between the business owner and the manager under trade law.

Typical applications include the establishment, takeover or lease of a hotel or restaurant business or a travel company if the company does not have the necessary qualifications or if the manager under trade law needs to be secured at short notice.

The granting of a licence is particularly relevant when a business licence needs to be obtained quickly and cleanly and the right person is not (yet) available within the company. Typical cases are:

• Opening (starting a business) a hotel or restaurant without your own certificate of competence
• Takeover, lease, change of operator or change of owner
• Opening of a travel agency or tour operator, depending on the actual scope of business
• Short-term securing of the commercial law function, for example in the event of a change in management in a hotel, restaurant or travel company

The same logic always applies: the more clearly the activities, responsibilities and access to information are defined, the more realistically and smoothly the function can actually be performed.

A valid trade licence is required to operate a hotel, restaurant or travel agency in Austria. This generally involves fulfilling the general personal requirements, formally registering the business with the relevant authority and providing proof of professional qualifications (qualification certificate). The latter is usually provided by relevant training and practical experience or by a proficiency examination. If the entrepreneur cannot provide the proof themselves, it is possible to cover it through an appointed manager under trade law qualifications, provided that the role, responsibilities and access to information are organized in such a way that the responsibility can indeed be exercised in the business. More Infos at the pages of the Austrian Chamber of Commerce for Hospitality and Travelagency.

Initial assessment, feasibility and clear demarcation

The process begins with a brief, structured initial assessment. This clarifies which activities are actually carried out, how the business is organised and whether the requirements for management under trade law are reasonable and feasible in this constellation. The demarcation of roles is central to this. Overall entrepreneurial responsibility and operational management lie with the operator or owner. Management under trade law, on the other hand, requires a clearly defined area of responsibility, access to relevant information and the ability to control and monitor.
Typically, the following points are of central importance for this:

• Type of business and specific activities (what is actually offered and implemented)
• Legal form, location, status (establishment, takeover, current operation)
• Responsibilities in everyday life (contact persons, decision-making processes)
• Economic indicators (past year’s figures or budget planning)

Appointment and formalities
If the arrangement suits both parties, the next steps and the necessary documents are agreed upon. The appointment of a new manager under trade law can be notified via the GISA system, the responsible magistrate or the district administration, provided that all requirements are met.

Ongoing exercise of the function
Clear rules are needed to ensure that management under trade law is effective and legally secure:

• Defined roles and responsibilities between operator/owner and the manager under trade law
• Access to relevant information and documents
• Fixed coordination and documentation cycle (deadlines, reporting, evidence)
• Actual possibility of control and monitoring activities in the business

The hotel and catering industry is a regulated trade in Austria. In most cases, proof of competence is required to obtain a trade licence. In addition, the type of business and the scope of services actually provided must be clearly defined for the trade licence. This is relevant because it determines which requirements and evidence are necessary in the specific constellation and how the business licence is correctly registered. In addition, it must be clearly clarified at the outset which type of business and which scope of services are actually being implemented, because this determines the necessary evidence and the correct registration.

Application scenarios in the hotel and hospitality industry

• Founding a business without your own certificate of competence or without a suitable person in the company
• Takeover/lease, change of operator or change of owner
• Short-term securing of the commercial law function in an existing business

What matters in practical terms
For a practical concession licence, you need a business organisation that enables real responsibility and control. Focusing on three points has proven to be effective:

• Clear responsibilities (who decides what, who documents what)
• Defined processes (standards in the business to ensure consistent quality)
• Transparency on critical issues (complaints, hygiene, service providers, interfaces)

Role of manager under trade law in the hotel and hospitality industry
Management under trade law is a responsible function in the business. Control and monitoring tasks must be able to be performed effectively. This requires access to information, defined contact persons and a fixed coordination rhythm.

The travel agency industry is a regulated industry in Austria. For a trade licence, proof of competence is therefore particularly important, and it must be clear which activities are actually carried out in each specific case. In practice, it makes a difference whether services are resold or whether the company acts as a tour operator, as this results in different responsibilities, processes and organizational requirements.

Usage scenarios in the travel agency industry

• Setting up a travel agency without your own proof of competence or without a suitable person in the company
• Taking over a travel agency or tour operator
• Securing the trade law function in the event of a change in management or handover

What matters in practical terms
A travel agency functions reliably when responsibilities and processes are clearly defined and advice, booking and processing are carried out according to uniform standards, when changes, cancellations and complaints are clearly documented and processed in a traceable manner, and when payment flows between customers, service providers and the company itself are managed transparently.

Role of management under trade law in the travel agency business
The role of management under trade law in a travel agency is a responsible function within the company. In order for control and monitoring tasks to be carried out effectively, clearly defined responsibilities, sufficient access to information and a fixed coordination rhythm between the operator and the management under trade law are required.

In some cases, management under trade law alone is not sufficient, as operational tasks must be performed in parallel. This is the case, for example, in start-up phases, during handover, when establishing reporting and standards, or in projects under time pressure. In such cases, a combination can be useful – trade law management as the legal basis plus a clearly defined interim or project mandate for operational implementation.

More information on interim management

In trade law management, the most important thing is that responsibility is actually taken within the company – with an understanding of the industry and clear structures and processes to ensure that the business is run professionally.

My more than 30 years of industry experience in the hotel industry as well as in the travel agency and tour operator sector, the successful management of hotels and hotel groups of various types and categories, and my work as an authorized signatory in a large Austrian travel company provide a broad practical basis for this role. In addition, the core areas of my consulting services are incorporated, in particular marketing and customer experience, operational management and controlling, as well as coaching and change.

The initial consultation clarifies whether and to what extent trade law management is appropriate. Typically, the following points are required for this:

• Business and activity (hotel/restaurant/travel agency, specific scope)
• Location in Austria, legal form, current status (start-up/takeover/ongoing operation)
• Timetable and objective
• Documents and responsibilities (management, contact persons)

This is followed by a clear recommendation on how to proceed and the next steps.

What is a manager under trade law?
In trade law management, a suitable person assumes responsibility for the technically sound operation of the business in accordance with trade regulations. In addition, they must be actively involved in the business and ensure that all legal requirements are met.

Who has to appoint a trade law manager?
An appointment is necessary if the business owner does not meet the professional requirements themselves and the business must be managed by a suitable person. The exact framework conditions and deadlines are described in the explanations on commercial law management. Further information

What requirements must a managing director under trade law fulfil?
The person must be involved in such a way that they can actually perform their function. Depending on the legal form, there are additional formal requirements, such as power of representation or an employment relationship subject to social security contributions with a minimum scope.

What are the general requirements for a trade licence?
What are the general requirements for a trade licence?
In principle, general personal requirements are necessary and, in the case of regulated trades, proof of competence is also required.

What documents are typically required for the review?
In any case, a clear description of the specific activity is required, as well as documents proving the person’s qualifications (training/experience/examination) or the person who is to be appointed as managing director under trade law.

How fast can the appointment be implemented?
A realistic timeframe depends primarily on how clearly the activity and scope of the trade are described and whether all the necessary evidence and documents are complete. The more thoroughly these points are prepared, the faster the notification/appointment can be processed in practice.

What responsibilities and liabilities are associated with this role?
The trade lawl manager is responsible for compliance with trade law regulations and must be integrated into the organisation in such a way that they can actually perform their control and monitoring tasks.

Which tasks remain with the operator/owner and which are the responsibility of the trade law manager?
The operator manages the company economically and organisationally. The #management under trade law is responsible in terms of trade regulations and must be integrated into operational processes in such a way that it can actually perform its tasks.

What does ongoing #management under trade law cost?
Depending on the legal form, only a person authorised to represent the company or an employee who is fully subject to social security contributions and who works at least half of the normal weekly working hours in the company may be appointed as a commercial managing director. The costs correspond to the ongoing wage and social security costs for the trade law managing director.

How does cooperation and coordination work in day-to-day operations?
In order to fulfil commercial law responsibilities, the function must be organised in such a way that it is possible to carry out the relevant activities in the business. This requires, above all, access to relevant information and realistic involvement in key issues.

For which businesses do I provide the licence (hotel/catering/travel agency)?
Commercial management is offered for businesses in the hotel and catering industry as well as in the travel agency industry in Austria.

When does it make sense to combine this with interim/project management?
This makes sense if, in addition to formal management under trade law, operational implementation is also necessary, for example in the case of a start-up, a handover or the establishment of processes, as well as in the case of major organisational changes.