If you wish to undertake a business in the Czech Republic, you may do so by obtaining a trade licence (as a self-employed person). One typical example of an activity that you can carry out if you have a trade licence is to tutor a foreign language.
You must satisfy several conditions to be able to obtain a trade licence:
- you must have a residence permit for the Czech Republic, usually a long-term residence permit or long-term visa (visa for a stay of over 90 days);
- you must have full legal capacity (or court authorisation of consent of the legal guardian of a minor for the independent operation of a business activity);
- you must have no criminal record;
- if you wish to undertake a trade other than an unqualified trade, you must be able to prove your qualification.
Trades are divided into several categories in the Czech Republic. The right choice of trade is therefore one of the fundamental conditions of successfully starting your business. If you are unsure of which type of trade to choose, don’t hesitate to contact us and we will help you make the decision.
The division of trades in the Czech Republic
Trades are divided into two basic categories in the Czech Republic – trades carried out subject to a permit and trades carried out upon fulfilling certain basic administrative requirements.
1. Trades carried out subject to a permit
A trade carried out subject to a permit may only be carried out if you obtain a permit, which the government uses to regulate the number of trades operated, and entrepreneurs must prove that they have the qualification to carry out such a trade. Such trades carried out subject to a permit include road motor transport, including operating a taxi service, the production of spirits and alcoholic drinks, guarding property and persons, buying and selling weapons and ammunition, etc.
2. Trades carried out upon fulfilling certain basic administrative requirements
In contrast to trades carried out subject to a permit, no permit used by the government to regulate the number of trades operated is required to be able to operate a trade carried out upon fulfilling certain basic administrative requirements. Trades carried out upon fulfilling certain basic administrative requirements are subdivided into three categories.
2.1. Vocational trades
Carrying out vocational trades is conditional on being able to prove qualification to do so. Such vocational trades include butcher and delicatessen, baker, confectioner, glass cutter and etcher, mason, painter, bodywork repairman, decorator, barber, hairdresser, etc.
2.2. Regulated trades
To carry out a regulated trade you must first prove your qualification to do so. Such regulated trades include, for example, geologist, optician, project activity in construction, building work, altering buildings and removing buildings, trading in animals intended as pets, etc.
2.3. Unqualified trades
Unqualified trades are the most common and can be carried out without having to meet and special conditions. Activities that are classified as unqualified trades are, for example, the intermediation of trade and services, estate agency, the management and maintenance of properties, advice and consultancy activity, compiling expert studies and reports, services in administrative management, organisational and economic services, etc.