Hospitality Entrepreneurs & Administrative Law

What we do

Hospitality entrepreneurs have a great deal to deal with administrative law. Not only are multiple permits required to open and run a hospitality business, such as an alcohol and catering license, but hospitality entrepreneurs also have to deal with enforcement decisions, zoning plans, environmental permits, and regulations regarding public space and terraces.

Moreover, hospitality entrepreneurs frequently have to deal with so-called third-party stakeholders. Third-party stakeholders are often local residents who can object to permits or other decisions of the municipality for various reasons.

An administrative law procedure typically follows the same phases. First, a decision is made by an administrative body, such as the granting or refusal of a permit. This is followed by an objection round during which the hospitality entrepreneur or, for example, interested third parties can submit their objections to the decision taken. After that, there may be an appeal and a higher appeal procedure.

Our lawyers and legal experts in the administrative law practice group have the experience and expertise to advise on various issues concerning hospitality businesses in combination with administrative law. We prefer to prevent problems rather than solve them afterwards. Contact us to discuss the possibilities.

Which permits does a hospitality business need?

Whether you operate a pub, restaurant, hotel, or nightclub: before the doors open, the paperwork must be in order. In practice, this often involves a combination of permits. The Alcohol Act (the successor to the Licensing and Catering Act) requires a license for the serving of alcoholic beverages; without that license, you may not serve beer, wine, or spirits. In addition, virtually every municipality requires an operating license for running a catering business in its General Local Ordinance (APV) . For renovations, noise, and environmental aspects, an environmental permit (under the Environment and Planning Act) is usually required, and a separate terrace permit usually applies for setting up a terrace.

These permits each have their own conditions. For instance, the Alcohol Act imposes requirements on managers (such as possession of a Social Hygiene Certificate) and on the layout of the premises. An application that is incomplete or incorrectly substantiated will be refused or remain pending for months. Our lawyers and in-house counsel are familiar with local policy, submit complete applications, and, if necessary, engage in dialogue with the municipality to prevent delays.

Refusal or revocation of your catering license

A municipality may refuse a permit or revoke a permit that has already been granted. A common ground is that the operator or manager is allegedly not of “good conduct.” The Administrative Jurisdiction Division of the Council of State has tightened the requirements for such a decision: the municipality must provide sound reasons for refusing a permit on the grounds of bad conduct. A mere suspicion or an old record is insufficient.

A second, far-reaching ground is the Act on the Promotion of Integrity Assessments by Public Administration (Bibob Act). Pursuant to Article 3 of the Bibob Act, an administrative body may refuse or revoke a permit if there is a serious risk that the permit is being used (partly) to commit criminal offences or to utilize benefits derived from criminal offences. For a bona fide entrepreneur, a Bibob investigation can easily feel like a suspicion. We assess whether the investigation was conducted carefully and proportionately and, where necessary, defend against a negative Bibob recommendation.

Enforcement: fine, penalty payment and closure

If a hospitality entrepreneur fails to comply with the rules, the municipality has an arsenal of enforcement instruments at its disposal. The mayor or the municipal executive can impose a penalty payment order or an administrative enforcement order pursuant to Section 5.3 of the General Administrative Law Act (Awb), whereby you forfeit a sum of money per violation or the violation is remedied at your expense. In addition, an administrative fine may follow for violations of the Alcohol Act

The most far-reaching measure is the closure of the premises. If drugs are being traded in or from the hospitality establishment, the mayor can close the premises pursuant to Article 13b of the Opium Act (the “Damocles Act”). An emergency closure may also follow in the event of a serious disturbance of public order. Such a closure directly impacts your turnover and reputation. We take swift action, request a preliminary injunction from the administrative court where necessary, and challenge the closure through objection and appeal proceedings.

Objection and appeal against decisions of the municipality

If you disagree with a decision, the first step is usually to lodge an objection . Pursuant to Article 6:7 of the General Administrative Law Act, a time limit of six weeks applies for this, following the publication of the decision. If your objection is rejected, you may appeal to the District Court and subsequently to the Administrative Jurisdiction Division of the Council of State. Because an emergency closure or revocation takes effect immediately, in urgent situations we simultaneously request a preliminary injunction (Article 8:81 of the General Administrative Law Act), so that the decision is suspended pending the proceedings.

Deadlines in administrative law are strict: too late is too late. Therefore, engage legal assistance in a timely manner. Whether you are an international hotel group or the independent owner of the corner café, we ensure that your objection or appeal is substantively strong and submitted on time.

Our approach for hospitality entrepreneurs

MKB Juristen works with mixed teams of lawyers and experienced in-house counsel. As a result, we combine judicial clout with practical, affordable advice tailored to your business. We help develop your permitting strategy, guide inspections and enforcement processes, and assist you in proceedings up to and including the Council of State. We prefer to prevent problems rather than solve them after the fact.

Hospitality Entrepreneurs & Administrative Law is a specialization within our broader expertise in Administrative Law. Would you like to know where you stand? Contact us for an initial, no-obligation assessment of your situation.

Frequently asked questions about hospitality and administrative law

Which permits do I need to start a hospitality business?
Usually an Alcohol Act license, an operating license under the General Municipal Ordinance, often an environmental permit, and, if necessary, a terrace permit. Exactly which ones are required depends on your concept and your municipality.

My permit has been refused due to “bad conduct”. What now?
The municipality must properly justify such a refusal. Often, there is scope to demonstrate in an objection that the justification is insufficient. Let us review the decision; the objection period is six weeks.

The municipality wants to close my business. Can I prevent that?
In the event of an (emergency) closure, we can apply to the administrative court for a preliminary injunction to temporarily suspend the closure, while we contest the case on the merits. Acting quickly is crucial in this regard.

What is a Bibob investigation and what does it mean for me?
Under the Bibob Act, the municipality assesses your integrity before granting or retaining a permit. A negative recommendation can lead to refusal or revocation. We assess whether the investigation is thorough and proportionate and mount a defense where possible.