How to Obtain a Trade Licence in the Czech Republic

Working and living in the Czech Republic require to fill documents and obtain certificates, all in order to do everything under the law. Here you can find some basic knowledge regarding trade licence and how to get one!

Getting the trade licence involves a certain amount of bureaucracy (yep, a true bummer!) and it’s surely a bit complicated, but remember that you can always count on Foreigners for help!

 

Trade Licence: a quick definition

One of the common routes to do business in the Czech Republic is through the sole proprietorship, often called a trade licence. A sole proprietor (osoba samostatně výdělečně činná, or OSVČ) is a physical person who has income from carrying out a business and/or self-employment (a freelancer or entrepreneur). A sole proprietor may be registered with the Commercial Court (Obchodní soud), or the trade licence regulator (živnostenský úřad). The sole proprietor is liable without limitation and can trade on his/her full name – to which s/he might attach some customized trade name.

Requirements and costs

To file the application the applicant must be at least 18 years old and provide:
· Photo identification.
· Proof of citizenship or legal residency (a long-stay or permanent residence visa).
· A foreign criminal record extract or affidavit confirming to have no criminal record.
· The owner permission (souhlas vlastníka) for the place of business.
· A properly compiled trade licence selection form.

Types of licence trades

There are 80 unqualified trades that can be included in the trade licence. Trades/job as language teaching, tourist services or photographer, are within the above 80 trades.

In addition, 17 craft trades like locksmith, watchmaking or goldsmithing are applicable for a licence. A special guideline must be followed in order to operate a business in the Craft fields.

At last 32 professional trades, like optician, medical devices manufacturer or tax accounting are on the list as well. Related education and/or experience in the field must be proven if you want to include them in your trade licence.

Keep in mind that craft and professional trades might also be regulated by special laws, made to ensure adequate ethic and product standards e.g: hygienic ones if you work as a farmer. So remember to always take extra-care on this issue.

Tax duties

When you apply for a trade licence you’re a freelancer, not an employee. Given that you have to pay for your own taxes, every year in March. The amount of them depends on your annual income. To respect the law you will also have to register for social security insurance and pay for it monthly.

Health insurance

If you want to work as a freelancer, you’ll need health insurance and about that your obligations depend on where are you from. If you are a Czech or EU citizen or a person with a permanent resident permit you’ll have to get a public health insurance in order to work. If you come from Countries like U.S.A. or Turkey, even if you have only a visa, you’ll have to apply for the public health insurance. Finally, if you come from a country which is not part of the EU and out of the above-mentioned list, you’ll have to get a private health insurance in order to work in the Czech Republic.

Given its mandatory nature and complexity, always take extra care on this particular issues, maybe with the help of an expert.

All considered, having the trade licence is one of the best options when it comes to working in the country, if you want to know the benefits, click here!

Gianandrea Da Ros

Gianandrea Da Ros

Hello dear readers, I'm Gianandrea, Italian, currently living in Prague and ready to bring to you everything that this beautiful city and our company have to offer!

17 thoughts on “How to Obtain a Trade Licence in the Czech Republic

  1. Hey I want to Know about street vendor permit for Prague can you help me with this.
    Thanks

  2. Hello,

    I need to open an ecommerce in Prague, I am currently living in Prague with long term visa. Where can I apply which center pls?

  3. Hi Mates,

    Hope you guys are doing great at your end.I need some information regarding trade license.

    There is company located in Prague which was offering me a job but I couldn’t get the work permit till now I was trying to get appointment from Czech embassy ,New Delhi.I am an Indian working in Mumbai right now.

    So right now I am planning to visit to Prague by 1 January 2020.I am an IT expert and had stayed in Prague from January 2017 to November 2018.

    I can get a 3 month tourist visa.I am planning to apply for trade license.

    Is it possible?

    Thanks
    Shubham
    +917028987891

  4. Hello,

    I have a criminal record check from the UK. It was issued on the 31st of May 2019. I would like to know if that’s fine for you to file an application with that or do I need a fresh criminal record check?

    1. Hello Shan,

      Thank you for your comment! As far as I know you should have a clean criminal record in order to get a trade licence in the Czech Republic. For any further questions, please write at info@foreigners.cz and my colleagues will get back to you as soon as possible.

      Kind regards,
      Karina.

  5. Hi there!

    My name is Josh, I am an Australian/Slovak who is living and planning to work in Prague. I think my jobs will require me to have a trade license (i am currently training to be a free walking tour guide with a small local company.

    Do i need to have health insurance to get my trade license?

    Thanks for the help!

    Kind regards,

    Josh Hickman

  6. You mention that it is possible to attach a trade name to a Zivno. I cannot find any more information about this anywhere.

    Where do you register these trade names for a simple trade licence ?

    1. Hello Patrick,

      Thank you for your comment! We have already forwarded your request to our consultant who will get back to you as soon as possible.

      Wish you a good day!

  7. Hello:
    Im Yusuf İkinci. I have european passport. 30 years old from Cyprus. Im an architect.ı have too much experience . I love and prefer office works. Can you help me?

    1. Hello Yusuf,
      We highly recommend you to buy our e-book “How to Find a Job in the Czech Republic.” Here’s the link to it. It’s a perfect guide which will make finding a job much easier!

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