An auction house is a business entity that specialises in conducting auctions. It serves as a marketplace where various items are sold through competitive bidding. Auction houses organise and manage the auction process, employ professional auctioneers, facilitate bidding, provide valuation and appraisal services, handle marketing and promotion, and charge sellers a commission or fees based on the final sale price. They act as intermediaries, bringing together buyers and sellers in a structured and transparent manner to facilitate efficient and competitive sales transactions.
The business activities that fall under Auction House are:
Auction Hall (4540.92): An Auction Hall is a dedicated physical venue owned or operated by an auction house for conducting auctions. It serves as the central location where auctions take place, providing facilities for bidders, sellers, and auctioneers. The Auction Hall is designed to accommodate the display of items, seating or standing areas for bidders, and a stage or podium for the auctioneer. It is an integral part of an auction house’s operations, ensuring a professional environment and centralised venue for efficient and transparent auctions. Having an Auction Hall allows the auction house to maintain control over proceedings and provide a secure space for bidders and sellers to participate in the auction process.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 4540.92 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 4540.92 is exempt from this requirement.
Authentic Artefacts & Antiques Auction House (4540.93): This is a specialised auction house that concentrates on the sale of genuine artefacts and antique items with historical or cultural value. It falls under the broader category of Auction House as it shares the core characteristics and activities of facilitating auctions. This type of auction house organises and manages auctions dedicated to authentic artefacts and antiques, employing expert appraisers and auctioneers. It provides a platform for buyers and sellers interested in acquiring or selling these unique and valuable items. The auction house caters to a niche market of collectors, historians, and art enthusiasts.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 4540.93 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 4540.93 is exempt from this requirement.
Wholesale auctioneering houses (4610.04): Wholesale auctioneering houses are businesses that specialise in conducting auctions for bulk quantities of goods intended for resale. These auction houses provide a platform where wholesalers, distributors, and retailers can engage in competitive bidding for wholesale merchandise. They handle a wide range of products and facilitate the buying and selling process on a large scale.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 4610.04 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 4610.04 is exempt from this requirement.
Auctioning houses (retail) (4774.04): This refers to auction houses that conduct retail sales of second-hand goods, including books, antiques, and various used items. They fall under the category of “Auction House” as they provide a platform for retail customers to participate in auctions and bid on these items. However, it excludes the retail sale of second-hand motor vehicles, internet auctions, non-store auctions, and activities of pawn shops. These auctioning houses specialise in retail auctions, offering opportunities for customers to purchase second-hand books, antiques, and other used goods through competitive bidding.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 4774.04 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 4774.04 is exempt from this requirement.
Independent auctioneers (8299.09): These are self-employed professionals who conduct auctions on behalf of clients, specialising in various types of auctions. Although they operate independently, they fall under the umbrella of “Auction House” due to their role in facilitating auctions. Independent auctioneers organise and conduct auctions, offer auction expertise and services, and represent clients in the auction process. While they may not have their own auction house, they contribute to the functioning of the auction industry by bringing buyers and sellers together and providing professional auction services.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 8299.09 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 8299.09 is exempt from this requirement.
Auction Organising (8299.93): This involves planning, coordinating, and managing auctions. It falls under the category of “Auction House” as it represents a fundamental function performed by auction houses. This includes tasks such as strategizing auction formats, selecting items for auction, setting dates and locations, managing logistics, overseeing the bidding process, and maintaining relationships with sellers and buyers. Auction houses specialise in providing comprehensive services to facilitate the auction process, ensuring a structured and professional environment for successful auctions to take place.
- Third-party Approval: No third-party approvals are required for this business activity.
- Filing of Economic Substance Return: Business activity 8299.93 is exempt from this requirement.
- Anti-Money Laundering Compliance: Business activity 8299.93 is exempt from this requirement.
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