How to set up a trade licence in the Czech Republic?

If you want to do the business in the Czech Republic you will need to form a sole proprietorship. Sole proprietorship is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity. To be a sole proprietor you have to gain a trade license (in Czech called Živnostenský list). The person with a trade license will have a registered tax number and the same rights as the company registered in the Czech Republic.

Types of trade licenses in Czechia

There are two types of trade licenses, General trade licenses and Professional trade licenses. General licenses cover eighty common business activities. These activities don’t require any special education or degrees. You may perform all eighty activities with a single trade license and tax number.

Professional trade licenses (this expression covers technical trades, bound trades and concession trades) are regulated by the government and usually you need to prove special education and university qualifications to be able to obtain them.

General requirements for trade license

To be able to obtain a trade license you must be 18 years old and you’ll also need to submit different supporting documents depending on your current status. You will apply in the Trade Licensing Office and you provide these documents:

  • EU-citizens

You’ll need to present your passport or national ID card and proof of your Czech business address.Also it is needed the document demonstrating the legal grounds for use of the space of registered office (in Czech Souhlas vlastníka) which is signed by the owner of the place. One of the options is to have a virtual business seat in Prague which is provided by Profi-kancelář. A simple virtual company seat will make your business go smoother.

  • Non-EU citizens

From non-EU citizens is required a criminal record statement or equivalent document issued by the competent judicial or administrative authority of that state or the member state of last residence, or a statement from the Criminal Register with an appendix containing the information contained in the criminal record of the member state of which they are a citizen, or the member state of last residence. If the particular country does not issue criminal record checks or an equivalent document, the sole proprietor will issue a solemn declaration on a clear criminal record made before a notary or authority of the state of which they are a citizen or before a notary of authority of the state of last residence. These documents may not be older than 3 months.

If the entrepreneur is a foreign national that is obliged to have a permit for residence in the Czech Republic, he must submit a document demonstrating allocation of a visa for residence over 90 days or a long-term residence permit.

  • At the Trade Licensing Office

You will have to fill out the application where you will put your personal details, a residential and Czech business address and a list of selected trade license fields. Also you have to pay an administrative fee, stamp costs 1,000 CZK. 

For technical trades, bound trades and concession trades, a document evidencing professional qualification is needed.

Social Tax and Health Insurance

EU citizens are registered at public health insurance and social security office after registration and activation of trade licenses. Other nationalities’ trade license is activated and registered at social tax after they collect their Czech visas at the Czech embassy.

A sole proprietorship is regulated by a lot of government offices, including the trade license office, tax authority, social security authority, and a health insurance company. 

Do you want to have the whole process done smoothly without any hiccups? Then contact our professional agency. We will be happy to help you to start as an entrepreneur in the Czech Republic.