Trade Licence in the Czech Republic: All You Need to Know

#ImmiUpdatesCzechia Would you like to do business in the Czech Republic but you don’t know how? Then all you need is to acquire a trade licence (or “živnostenský list” in Czech). How do you apply for one and under what conditions? Discover all of it in this article and become an entrepreneur today!


Would you like to be self-employed?


What Is a Trade Licence?

Trade licence or sole proprietorship (also known as “OSVČ” in Czech) is a type of enterprise that is owned and generates revenue through business activities or self-employment, such as freelancing or entrepreneurship.

A sole proprietor may be registered with the Commercial Court (“Obchodní soud”), or the trade licence office (“živnostenský úřad”). The sole proprietor is liable without limitation and can trade on his/her full name.

Types of Trade Licence

There are two types of trade licence:

  • General trade licence: easier to obtain because no proof of specialized education or university degree is needed to perform the trade (for example, IT, marketing, photography services, event management,…)
  • Professional trade licence: relevant qualification needed to obtain an official permit to conduct specialized business activities, either specific experience or a diploma (for example, production, taxi driver, optics, psychology,…)



To be able to obtain a trade license you must be 18 years old and provide supporting documents. These vary based on your citizenship:

EU Citizens

Being part of the European Union makes the process very simple. All you need is:

  • a valid passport or national ID card
  • proof of your business address (or “souhlas vlastníka” in Czech) – a document signed by the owner of the place confirming he/she agrees with the space being a registered office (not applicable if the foreigner is the owner of the place)
    NOTE: you can also have a virtual business seat

Non-EU Citizens

Entrepreneurs from outside the European Union will need:

  • a valid passport
  • proof of your business address (as stated above)
  • criminal record statement from your country of origin or the last country of residence (not older than 3 months)
    NOTE: this does not apply for family members of EU citizens
  • residence permit in the Czech Republic – either a document allocation of a visa for residence over 90 days or a long-term residence permit.
    NOTE: trade licence validity is tied to the validity of your current visa/residence permit


Obtain your trade licence with Foreigners without any hassle!


Interested in the digital nomad visa? Check it out here.


Trade Licence For Employees

For those of you, who are already employed in the Czech Republic (employee card, blue card, different types of residence permit) – you are eligible for a trade licence. Do you want to start your own business and make extra money? Then trade licence is an option for you even if you’re not a business visa holder.


Tax Duties And Health Insurance 

As a freelancer, you have to pay your taxes every year. For this year’s tax return guide, head to this article. The amount depends on your annual income. You will also have to register for Social Security insurance and make monthly payments.

On top of that, you also need to take care of health insurance. As an EU citizen or a person with a permanent resident permit, you’ll have to get public health insurance. Non-EU citizens have to get private health insurance unless stated otherwise in the bilateral agreement about health insurance.


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Sources: trade licence law
Image source: krakenimages, linkedinsolutions


Monika Tužinská

Hey, my name is Monika. I love exploring the world and learning new languages. I worked in the USA for several months and moved to Brno a year ago, so I know how it feels to live in a different country. Let's discover Czech Republic together.

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