ACT[1] on freedom of economic activity

Chapter 5
Control of the entrepreneur*
This chapter of the ACT illustrates the rule of public administration authorities to control the
entrepreneur's economic activity. It will be controlled in line with the terms and conditions, else
cases or conditions not stated, provisions of specific act shall apply.
If the economic activity is claimed not conducted according to the provisions of act, and something
has been found like threat to life or health, risk of property or assets danger etc., a mayor or town
president shall immediately notify public administration. Then the action undertaken for the above
reasons by the public administration authorities shall be immediately informed to the
mayor/president of the town. In case of the mayor/president of the town is unable to notify the
public administration, he or she shall take an action towards this by stopping the economic activity
for not more than 3 days and this action shall be taken immediately.
Controls may be carried out by employees of control authorities. These employees have official ID
cards which authorise them to carry out the control of the entrepreneur's economic activity. By
planning a control it is necessary that an authorisation must be presented to entrepreneur. This
authorisation shall specify, e.g. the legal basis, the control authority, name surname and number of
official ID card of an employee of the control authority, name of the entrepreneur's company, the
starting date and expected completion date of the control, the signature position or function of a
person granting the authorisation and the instruction on the rights.
The entrepreneur has to be present during the controls are carrying out. However, he/she has the
possibility to appoint another person who is authorised to represent the entrepreneur during the
controls. Furthermore, there are some cases where the entrepreneur has not to be present, e.g.
otherwise provided for in ratified international agreements or a threat to human life and health
was found. Obligatory, entrepreneurs shall maintain and keep a control book, the control reports
and authorisations. These documents shall be kept at the entrepreneur's registered office and
made available to control authorities upon request. The control book contains entries made by
control authority. These entries include e.g. the identification of the control authority and control
authorisation, the starting date and the completion date of the control and follow up
recommendations.
Administration authority shall not control more than one entrepreneurs economic activity. This
shall not apply if carrying out the control is necessary during the prosecution or investigation
proceedings against the entrepreneur, or if the control concerns the basis of the VAT return before
the return is made. If the entrepreneurs economic activity has already been subject to the control
carried out by another authority, the control authority shall discontinue control and fix an
appropriate date with the entrepreneur when the control may be carried out. However, during a
calendar year controller authority shall not exceed specific amount of time (i.e. 4 weeks with

respect to the entrepreneur, 8 weeks with respect to other entrepreneur). Control authority must
not face any time restrictions if it is provided in international agreement, carrying out the control is
necessary during the prosecution or investigation proceedings against the entrepreneur, the
control is justified, as the threat to human life and health or considerable risk to the environment
has been identified, the control concerns the basis of the VAT return before the return is made. If
the duration of the control is to be extended, a written justification shall be required. The
justification should be submitted to the entrepreneur and recorded in the control book before the
control is resumed. If the control has revealed a gross breach of the law on the part of the
entrepreneur, another control may be carried out during the calendar year within the same
substantial scope, and its duration shall not be counted against the period of time specified above.
Some restrictions are not applying during control for such scopes: special tax supervision,
surveillance of the capital market and commodities market, banking supervision, insurance
supervision, pension supervision, and veterinary supervision.

[1] ACT of 2 July 2004 on freedom of economic activity.

* entrepreneur: a person who organizes and operates a business or businesses

How can entrepreneurs appeal decisions which were made against him?
When a decision made against the entrepreneur he or she can appeal the decision in the
administrative courts which they oversee the activities of the public authorities.