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Obtain Trade License in Czech Republic

Updated on Sunday 24th March 2019

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Obtain-Trade-License-in-Czech-Republic.jpgPersons who are interested in starting the procedure of company formation in Czech Republic have to obtain specific business licenses, amongst numerous other compulsory registration requirements. One of the registration requirements available in this country refers to obtaining a trade license. The trade license needed for a Czech company depends on the objects of activities that will be carried out in this country. 
 
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 team of consultants in company formation 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
 

What are the 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. 
 
The full list of the unqualified traders recognized in the Czech Republic are presented on an extensive basis in the Annex no. 4 of the Government Decree no. 278/2008 Coll. Another category of trades is given by the craft trades (17 trades are included into this category). 
 
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 specialists in company formation in Czech Republic can provide more information on the conditions for applying for a professional trade license
 

What documents are necessary for obtaining a Czech trade license? 

 
The main condition for applying for a 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 team of 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 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. 
 
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 staring a business in a Czech region
 
 

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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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