Understanding the process
Clearance sales are retail sales for new merchandise. They are either advertised before the sale takes place or during the sale. The aim of a clearance sale is to dispose of all or part of the merchandise of a company at an accelerated rate and at discounted prices. Clearance sales are organised with a view to termination, a change of activity or significant modification of the operating or working conditions.
A license from The Minister of State must be granted for a clearance sale to take place, The Minister of State also determines the duration and the terms of the clearance sale.
During the sale, it is forbidden for the trader to receive merchandise of the same kind which was included in the inventory which was produced as part of the license application.
The license application must be completed at least one month before the date on which the sale is planned to start. This timeframe may be reduced to eight days in the event that unforeseen circumstances were such as to disrupt the smooth running of the establishment.
You must write an application which includes:
- The name of the natural person or the trade name of the legal person who is requesting the license
- The business name and the address of the establishment which will be used for the clearance sale
- The start date of the planned sale and its duration
- The grounds for the application
- A detailed inventory of the merchandise and the origin of the merchandise, which should be established using invoices
- A document proving the decision that prompted the application. If the application was prompted by works which are due to take place, a copy of the quote for the planned works is required
The application must be signed by the business manager or by any other person who is qualified to represent the business manager.
Your application must be delivered to the Business Development Agency at least one month before the start of the sale. This timeframe may be reduced to eight days in the event that unforeseen circumstances were such as to disrupt the smooth running of the establishment.
A delivery receipt for the license application for a clearance sale will be delivered to the petitioner without delay.