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Services notifications

The obligation to notify the provisions imposing requirements on service providers results from Directive 2006/123 /EC on services in the internal market

What kind of requirements should be notified?

Experts drafting law have  to notify regulations that impose the following requirements or restrictions on a service provider who permanently carries out an economic activity:

  • quantitative or territorial restrictions, in particular in the form of limits set according to population size or minimum geographical distance between service providers;

Examples of notifications: restrictions on the location of shopping streets and bazaars, designation of zones for tourist or recreational activities, restrictions on services provided in protected areas (national parks), minimum distances from wind farms to residential buildings, geographic restrictions for retail trade, the requirement for the service provider to cover the territory in question, minimum distances between residential buildings and hazardous or polluting activities.

  • an obligation on a provider to take a specific legal form;

Examples of notifications: obligation for a flight crew trainer to adopt legal personality, only limited liability companies or public companies can provide water services, prohibition of accounting services by non-profit entities.

  • ownership of shares or stocks in the company;

Examples of notifications: restriction of shares that may be held by persons without a given professional qualification or legal persons, restriction of voting rights that may be held by persons without a given professional qualification, a minimum capital requirement for limited liability companies providing tax advisory services, a new license requirement, if the change of ownership exceeds 25% of shares, permission to operate in the form of a joint stock company / partnership only if the shares are registered, obligation to specify the ownership structure or shareholding structure.

  • other than those relating to matters covered by Directive 2005/36 / EC or provided for in other Community legislation, which reserve the right to undertake a service activity for selected service providers due to the specific nature of the activity;

Examples of notifications: obligation to register by professional organizations, granting a service provider an exclusive right to perform certain services for the public administration (IT services), requirements imposed on companies verifying compliance with regulations or standards (e.g. appropriate equipment or accreditation by a public authority), licenses / accreditations required from entities providing education / training services (e.g. in the field of taxation or security), the requirement to have certain equipment, the requirement to comply with codes of good practice, the requirement for a criminal record certificate.

  • prohibition of having more than one establishment in the territory of the same country;

 Examples of possible notifications (not in IMI): requirements that prevent service providers from having more than one establishment in the territory of the same Member State, e.g. prohibiting the establishment of more than one law firm in the territory of the country.

  • fixing the minimum number of employees;

 Examples of notifications: the minimum number of employees in units providing educational services, driving schools, the requirement to be physically present during the opening hours of the service point (e.g. at gas stations), the obligation to employ at least one person with appropriate professional qualifications, the obligation to employ an internal controller / auditor.

  • minimum or maximum tariffs with which the service provider must comply;

Examples of notifications: fixed tariffs for veterinary services, fixed tariffs for services provided by inspection entities, tariffs charged in relation to the value of the case (appraisers / mediators / attorneys), minimum tariffs for subcontracting services / services under the contract, agreed tariffs for chambers of commerce services.

  • an obligation on the provider to include other specific services jointly with his service.

Examples of notification: obligation to sell LPG by petrol stations, obligation to offer breakfast or other meals by hotels, obligation to conclude an insurance contract by travel agencies.

You should also notify all requirements and restrictions imposed on service providers from other EU countries temporarily providing services in Poland.
The obligation to notify results from Art. 39 par 5 (temporary provision of services) and art. 15 par 7 of the Services Directive (permanent exercise of a service activity).

Who notifies and at what point in the legislative process?

The ministries responsible for the sectors covered by the directive notify draft legal acts at a stage of the legislative process in which the draft is no longer subject to significant changes - usually after interministerial arrangements and public consultations.
Each ministry is responsible for notifications or possible lack of them.
The service notification does not suspend the legislative process.

Which legal acts are subject to notification?

The requirements of the following legal acts are subject to notification:

  • laws,
  • regulations,
  • internal acts of professional organizations regulating the undertaking and performance of activities by representatives of professions,
  • acts of local law.

How should I notify?

Notifications are entered into the Internal Market Information System (IMI) under the "Notifications" module. The IMI system is a website enabling the exchange of information between institutions in the EU Member States and the European Commission.

Only provisions imposing requirements on service providers are introduced into the IMI system. There is no obligation to enter the content of the entire draft legal act.
A justification is required for the notification. The requirement to be introduced must meet the following conditions:

  • non-discrimination - requirements must not lead to direct or indirect discrimination based on nationality or, in the case of companies, on the basis of their registered office;
  • necessity - requirements must be justified by an overriding reason relating to the public interest;
  • proportionality - requirements must be appropriate to ensure the achievement of the objective pursued and must not go beyond what is necessary to achieve that objective.

A practical guide prepared by the European Commission can be used to enter notifications.

Notification may also be made via the TRIS system (a system dedicated to notification of technical regulations).
The TRIS system is not suitable for the notification of requirements imposed on service providers temporarily providing services (no legal basis).

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