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Obtain Trade License in Czech Republic
Updated on Monday 03rd October 2022 Rate this article
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The trade licenses available in this country are regulated under the Trade Licensing Act, the main legal document which prescribes the types of trades that are recognized here. Our company formation agents in Czech Republic can assist businessmen with legal representation on the registration of a business and may also offer an extensive presentation on the steps that have to be performed when applying for a trade license.
| Quick Facts | |
|---|---|
| Who requires a trade license in Czech Republic | Companies with economic activities in Czech Republic must firstly obtain a trade license. |
| Who issues trade licenses in Czech Republic | The Czech Trade License Authority |
| Trade license categories | General and Professional Trade License |
| What can you do with a general trade license? | Most of the activities developed on the market, except the professional ones. |
| Who requires a professional trade license | Self-employers activating in sectors like accounting, tourism, private medicine etc. |
| Formalities for obtaining a general trade license | Applicant must provide: - a valid ID card or passport, - residence permit, - proof of domicile in Czech Republic, - clear criminal record |
| Registration for public health insurance (YES/NO) | Yes |
| Time frame for obtaining a trade license | Around 30 days |
| Costs of a trade license | Starting at CZK 1,000 |
| Unique ID business number issued (YES/NO) | Yes |
| Tax registration required | Yes, if you want to start a company in Czech Republic. |
| We can provide support for foreigners who want to obtain a trade license (YES/NO) | Yes |
| We can manage the formalities for Czech trade license (YES/NO) | Yes |
| We offer assistance for company formation in Czech Republic (YES/NO) | Yes |
| We offer free case evaluation | Yes, for company formation in Czech Republic. |
Main categories of Czech trade licenses
According to the legislation applicable in the Czech Republic, there are a total of 80 unqualified trades. The list of unqualified trades covers a wide range of business activities that can be carried out here, such as services and activities developed in the agriculture and forestry sectors, wholesale, printing and publishing, design, advertising, modelling, photography and numerous others.
They refer to business activities such as locksmithing, goldsmiths’ activities and jewelry manufacturing, watch making and others. The procedure on how to obtain this type of license depends on the specific business field. For example, in the case of those opening a company in Czech Republic in the jewelry sector, the following will apply:
- • the owner of the company has to notify the local institutions on the intention of obtaining a vocational trade;
- • this procedure can be completed at any Trade License Office available in the Czech Republic;
- • the notification can be only be sent by completing special forms, which vary based on the legal entity of the company (sole traders or corporate bodies);
- • the document can also be submitted through the Register of Trade Businesses (online procedure);
- • the notification has to include relevant documents which attest the fact that the applicant has the professional competence to start a business in this industry.
The Czech legislation also provides another category of trade licenses, available for professional trades. There are 32 types of professional trades, issued for business activities such as accounting, tax consultancy, bookkeeping, the real estate sector, driving instructors, restoration of art works and others. Our team of company formation specialists in Czech Republic can provide more information on the conditions for applying for a professional Czech trade license.
What documents are necessary for obtaining a Czech trade license?
The main condition for applying for a Czech trade license is to have, as an applicant, an age of minimum 18 years old. The applicant must provide a recent photo, the proof of his or her citizenship or if the person is a foreigner living in the Czech Republic, the proof of residency in this country (it is necessary to know that if this applies, the person must have a long-stay residency document or a permanent residence visa).
A clean criminal record is also necessary and a confirmation regarding the place in which the person will carry his business activities.
Investors must know that they are also required to pay a fee for the issuance of the license. This is necessary when registering with the Trade License Authority and the fee requested for the procedure is of CZK 1,000. Our specialists in Czech company formation can provide more information on other formalities that must be considered when registering with the institution.
What are the tax obligations for the holders of Czech trade licenses?
Under the Czech legislation, persons who have obtained a trade license (regardless of its kind), are legally obliged to register for taxation purposes. In a period of maximum 30 days since the trade license was issued, the holder has to register with the tax administration in the region where the activity is developed, with the social security administration and with the public health system.
Non-EU citizens and Czech trade license
Whether you choose a general Czech trade license or a professional trade license as a foreign businessman in the Czech Republic, you need to comply with the formalities imposed by the legislation. Regarding the documents, we review the following:
- • A long-term residence permit for the Czech Republic is required.
- • A valid passport or national ID card is needed.
- • Non-EU and British citizens must present a clear criminal record.
- • The Czech business address is required.
- • It is also accepted if you have a virtual business address.
- • Specific standard forms must be completed with information about the activities of your company.
Once the Czech trade license is obtained, you need to apply for private health insurance. Exceptions in this case are made by businessmen from EU countries. In addition, you must take into account the trade license prepayment of approximately CZK 2,627 that must be paid every month.
We remind you that one of our local agents can take care of the formalities of obtaining a Czech trade license, so you can contact us with confidence.
Vocational trade license - Who needs to apply
A Czech trade license is also required for vocational workers. This category includes bakers, painters, hairdressers, carpenters as well as those who offer cosmetic services. In this case, you must meet professional competence and more precisely prove that you have the necessary qualifications in the sector in which you want to work or if it is a matter of retraining.
Before obtaining a Czech trade license, you must also provide information about your previous experience. Therefore, if you are interested in a vocational trade license, do not hesitate to talk to one of our company formation agents when you want to open a business. We are here to take care of all the necessary formalities and documents, so rely on our support.
What is a permitted trade license in the Czech Republic?
A permitted trade license is required for some categories of workers. For example, taxi drivers and other similar applications, vehicle transporters, and sellers of alcoholic beverages must apply for a permitted Czech trade license before practicing. This type of permit is issued either by municipal or state authorities.
Applying for a Czech professional trade license
If you want to be active in the field of real estate, to offer psychological or legal advice, you must apply for a professional trade license. And in this case, you must prove that you have the necessary studies to work in the desired field, as well as information about your previous experience.
Investing in the Czech Republic
The Czech Republic is an extremely attractive business destination for foreigners looking for generous profits in a country with political, economic, and financial stability. The country has a well-developed infrastructure for any type of business, and among the sectors of interest are manufacturing, agriculture, tourism, services, real estate, and transportation. Regardless of the chosen sector, you must consider applying for a Czech trade license.
Below are some data and statistical information about the Czech economy:
- • More than USD 200 billion represented the total FDI in the Czech Republic in 2021.
- • The Netherlands, Luxembourg, Austria, and Germany are among the most important foreign investors in the Czech Republic.
- • The first semester of 2021 recorded FDI inflows of approximately USD 2.5 billion.
Businessmen are invited to contact our team of specialists in company registration in the Czech Republic for further information on the issuance of trade licenses in this country; our representatives may assist in any other procedure involved in starting a business in a Czech region.
Meet us in Brno
Call us at +420 721 565 868 to set up an appointment with our specialists in company formation in Brno. Alternatively you can incorporate your company without traveling to Czech Republic.
As an CorpexLab client, you will benefit from the joint expertize of local experts and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Czech Republic.
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