Special trading license – conditions, procedure for obtaining, and scope

Special trading license – conditions, procedure for obtaining, and scope
Marek Cieślak

Marek Cieślak

CEO CGO Finance

Conducting business activity in the field of manufacturing, trading, storing, or transporting explosives, weapons, ammunition, and products or technologies intended for military or police use – known as special trade – requires obtaining a specific administrative decision. A special trading license is one of the most restrictive and demanding permits in the Polish system of economic law.

This guide provides a detailed explanation of when a special trading license is required, what conditions must be met, how the licensing procedure is carried out, what obligations rest on the entrepreneur, and what risks are associated with conducting such activity without the proper authorization.

Table of Contents

What Is Special Trade?

Special trade is a specific form of business activity, including:

  • manufacturing;
  • trading (selling, purchasing, brokerage)
  • storage;
  • transport
  • of explosives, weapons, ammunition, and military or police-use products and technologies.

Items subject to licensing include, among others:

firearms, weapons components, optoelectronic systems, military technologies, ammunition parts, as well as a broad range of strategic goods

The key regulations underlying the special trading concession system are:

  • the Act of 13 June 2019 on carrying out economic activity involving the manufacture and trade of explosives, weapons, ammunition, and military or police products and technology [Polish Journal of Laws 2023, item 1743];
  • executive regulations concerning technical safety, storage, and documentation requirements, including the Regulation of the Council of Ministers of 17 September 2019 on the classification of types of explosives, weapons, ammunition, and products and technologies intended for military or police use, for which a concession is required for manufacturing or trading [Polish Journal of Laws 2019, item 1888].

When Is a Special Trading License Required?

A license from the Ministry of the Internal Affairs and Administration is mandatory for businesses involving:

  • production of weapons, ammunition, explosives;
  • trading weapons and ammunition;
  • trading military or police products;
  • trading military technologies;
  • storage or transport of products covered by the Act.

When is a special Trading license not required?

An entrepreneur does not need a concession when trading:

  • pyrotechnic products: spectacle (class F1, F2 and F3), theatrical (class T1) and other (class P1);
  • firearms devoid of functional features and products for military or police purposes, devoid of functional characteristics;
  • alarm and signal weapons.
Special trading license

Conditions for Obtaining the License

Obtaining a special trading license requires meeting strict personal, organisational, and technical criteria. The provisions of the Act directly state who can apply for a concession. It defines the conditions for the entrepreneur and the company’s representatives. A systematic overview of the most important requirements is presented below.

Entrepreneurs registered in CEIDG (sole proprietorships) and in the National Court Register [KRS] (e.g. general partnerships or limited liability companies) may apply for a concession.

What is important to obtain a concession an entrepreneur:

  • must not appear in the KRS insolvent debtors register or the National Debt Register, and
  • must meet the technical and organisational requirements for properly conducting the licensed activity

1. Concession for entrepreneurs – natural persons

A concession is granted to an entrepreneur who is a natural person if they:

a) hold citizenship of:

• Poland;

• another EU Member State, the Swiss Confederation, or an EFTA Member State that is a party to the EEA Agreement;

• another country, if they have obtained a permanent residence permit or an EU long-term resident permit in Poland, or based on reciprocity, unless international agreements to which Poland is a party provide otherwise;

b) are at least 21 years old;

c) have completed at least secondary education or secondary vocational education;

d) have professional training to perform or manage business activity in the field of production and trade in explosives, weapons, ammunition and products and technology for military or police purposes, the scope of which corresponds at least to the scope of the planned business activity;

e) have full legal capacity;

f) do not show mental disorders and significant disorders of psychological functioning that would constitute an obstacle to the performance or management of business activity in the field of production and trade in explosives, weapons, ammunition and products and technology for military or police purposes;

g) have not been convicted by a final judgment for an intentional crime or an intentional fiscal crime;

h) no proceedings are pending against them for an intentional or fiscal crime.

2. Concession for entrepreneurs – other than natural persons

The above-mentioned requirements also apply to entrepreneurs other than natural persons. They must be met by:

  • at least two individuals who are members of the company’s managing body, or
  • a management board member and a proxy appointed to manage the licensed activity
  • and the no-criminal-record requirement also covers partners, managing body members, proxies, and shareholders with at least 20% of shares.
Special trading license

Technical and premises requirements

For activities involving storage, the following are necessary:

  • an opinion confirming compliance with technical and organisational conditions
  • certificates confirming compliance with sanitary, fire safety, and environmental regulations at the place of planned activity

Procedure for Obtaining the License

1. Submitting the Application to the Ministry of Internal Affairs and Administration [MSWiA in Poland]

To obtain a special trade license, an application must be submitted to the Ministry. It must include a detailed description of the activity and the scope of the concession, including:

1) the entrepreneur’s business name, registered office, and address, as well as the address(es) where the licensed activity will be carried out;

2) the number in the National Court Register or information on entry in the CEIDG, if applicable;

3) the entrepreneur’s tax identification number;

4) specification of the type and scope of business activity for which the concession is requested;

5) the requested period for which the concession is to be granted;

6) the planned start date of the licensed business activity;

7) personal data of the entrepreneur, and in the case of an entrepreneur other than a natural person: the personal data of members of the managing body, proxies, attorneys authorised to manage the licensed activity, and partners who are natural persons, as well as shareholders holding at least 20% of shares or stocks;

8) a list of shareholders and the size of their shareholdings or significant share packages;

9) indication of persons authorised to perform or manage the licensed business activity.

2. Administrative Fees

  • 616 PLN – fee for granting a concession (per activity scope);
  • 98 PLN for issuing a promissory note (license promise)

What is important, the amount of the fee applies to one scope of activity. In the case of several scopes and types, the amount of 616 PLN  should be multiplied.

3. Attachments and annexes to the application

The application must include:

  1. a certificate confirming that the entrepreneur is not listed in the Register of Insolvent Debtors in the National Court Register (KRS) and is not disclosed in the National Debt Register;
  2. an opinion confirming compliance with the technical and organisational requirements;
  3. certificates issued by the district (city) commander of the State Fire Service, the district sanitary inspector, and the provincial environmental protection inspector, stating that the buildings and technical equipment intended for conducting the licensed activity meet the requirements set out in fire protection, sanitary, and environmental regulations, respectively;
  4. criminal record certificates;
  5. documents confirming the education and professional qualifications of the entrepreneur and of the persons authorised to manage the licensed business activity;
  6. a medical certificate and a psychological certificate. They should be issued no earlier than 3 months before the date of application;
  7. proof of payment of the stamp duty.

Documents submitted in a foreign language should be translated into Polish. Translation should be authorised by a sworn translator. All submitted copies must be certified as true by a notary public or by a party’s attorney acting in the case.

4. Processing time

The concession procedure usually lasts up to 2 months. It may take longer if it is necessary to obtain additional opinions. You can read more about it here.

5. License promissory note

An entrepreneur may get a promissory note (promise to issue a concession), valid for at least 6 months.

Special trading license

Scope of the License

A special trading license may include:

  • production – production of weapons, ammunition, explosives;
  • trade – sale, purchase, brokerage;
  • storage – storage of weapons and military products;
  • transport – the transport of goods covered by the Act.

This scope is precisely defined in the concession decision itself.

Obligations After Obtaining the License

After receiving the concession, the entrepreneur must:

  • start a business within 6 months;
  • report the start of activity to the Ministry of Internal Affairs and Administration within 14 days;
  • report any change to data within 14 days;
  • provide new medical and psychological certificates every 5 years;
  • keep full records of turnover;
  • ensure constant technical and organisational security.

Failure to comply with these obligations may result in the revocation of the license. You can read more about it here.

Sanctions for Operating Without a License

Conducting activities in the field of special trade without a license is a risk. Consequences include:

  • revocation of license;
  • administrative liability;
  • high financial penalties;
  • criminal liability.

Special Trading License – Summary

A special trading license is one of the most demanding permits in the Polish jurisdiction. The entrepreneur must meet strict conditions. They concern clear criminal record, qualifications, technical and organisational preparation, as well as proper security of the location. The concession process requires diligence, complete documentation and knowledge of procedures. Proper preparation — ideally with the support of a law firm specialising in defence law — greatly increases the chances of obtaining the concession quickly. It also helps avoid formal errors.

Do you need support in obtaining a special trading license?Our law firm has long advised defence-sector and regulated-industry entities. We will help you prepare the documentation and navigate the Ministry application process. We also ensure you meet all technical and organisational requirements. Contact us! We provide comprehensive service and legal security for your business.

FAQ: Special Trading License

1. Does Every Company Producing Components for the Defence Industry Need a License?

Not always. A special trade license is necessary for items listed as military or police products.

2. How long does it take to get a special trade license?

Usually about 2 months. Although the process may take longer if extra feedback is necessary.

3. Does the concession also cover the export of military products?

Yes. In the case of exports, permits for trading in strategic goods may also be necessary.

4. Can a foreign company get a license?

Yes, provided that the principle of reciprocity resulting from international agreements is met.

5. What are the most common mistakes of entrepreneurs when applying for a concession?

The most common problems include missing attachments, outdated medical or psychological certificates. An incorrectly defined license scope is also a common problem. Another frequent issue is the lack of required documents for all individuals covered by the application. For example, shareholders holding over 20% of shares.

Featured expert

Marek Cieślak

CEO CGO Finance