Steps for Acquiring a Czech Trade Licence
Division of Czech Trade Licences
According to the Czech Trade Licensing Act (Act No. 455/1991 Coll.), the business activity is conducted systematically, individually, using one's own name, on one's own responsibility, with a view to make profit and under the conditions laid down under this law. The different professions requiring a trade licence are listed in annexes 1- 4 of the Czech Trade Licensing Act. For more information concerning business activities that are not trades please see our article Doing business without a trade license in Czech Republic.
Trades are divided under the Czech Trades Licensing Act into notifiable trades (Czech Free Trade Licende with fields of activities), which can be obtained based on notification - unqualified trade with objects of business: Manufacture, trade and services not specified in Annexes 1 to 3 to the Trade Licensing Act, and concession trades, which can only be pursued on the basis of a special business licence – a concession. Notifiable trades are categorised into three further groups: vocational, professional and permitted.
Notifiable trades are characterised by the fact that the authorisation to trade becomes valid immediately at the very moment of notification (not later when the trade licence is issued), i.e. the so called free trade license "Manufacture, trade and services not specified in Annexes 1 to 3 to the Trade Licensing Act" with fields of activities.
To illustrate the various types of trade, here are a few examples. Trades categorised as vocational include carpentry, bakery and confectionary, bricklaying and plastering, brewing, etc.: the complete list of Vocational Trades in the Czech Republic. Professional trades include activities such as providing or brokering consumer credit, work as an optician, or animals trading: the complete list of Professional Trades in the Czech Republic. Permitted trades include activities such as production and processing of fermented spirits, road transport or tour operators: the complete list of Permitted Trades in the Czech Republic.
In order to acquire the concession for concessionary trades, it is necessary to demonstrate the relevant professional eligibility and in some cases to also meet some additional requirements. Trades that require concessions include operating a travel agency, road freight transport or a security firm employed to protect other people’s property.
Those interested in a Czech trade licence for a notifiable trade can obtain one by notifying the trade, while applicants for a concession can submit their application at one of the general Trade Offices – central registration points, by means of government administration contact points (Czech-Point) or do so electronically using the Trade Register web system. Trades are notified and applications for concessions are submitted using a standard registration form. Forms can be obtained at any trade office, and in most cases are freely available at the Ministry of Industry and Trade website for natural persons and for companies (forms must be completed in Czech).
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General conditions for pursuing a Czech trade
The general conditions applying to a natural person pursuing a trade are: to have reached the age of 18 years, to have full legal capacity and a clean criminal record. According to the Act, a person with a clean criminal record is someone who has not been finally convicted of intentionally committing a criminal act, if it was committed in connection with business activities, or with the business object for which they are applying or notifying, unless they are now considered as not having been convicted of such offence.
Alongside the form, in the case of a professional or vocational trade or concession, the notifier or applicant must submit a document attesting its professional eligibility for the relevant trade, or of the appointed responsible representative, together with his/her signed declaration that he/she consents to the appointment. The signature on the declaration must be officially certified. If documents are in a foreign language, they must be translated into Czech by a sworn translator (list of Czech sworn translators), with the exception of documents submitted by nationals of EU Members States or by a legal entity with its registered office, central administration or principal place of business activities in an EU Member State, unless there are doubts as to the translation’s correctness.
Other terms and conditions
Further, a document attesting the legal basis for use of the premises on which the trader has located its place of business (e.g. a lease contract) must be submitted, and also a receipt for payment of the administrative fee, which is CZK 1,000 (EUR 40) for a notifiable trade (if multiple trades are notified simultaneously the fee is charged only once) must be sumbitted. A foreign natural persons, except for nationals of EU Member States or of a State Party to the Agreement on the European Economic Area, or the Swiss Confederation, must attach to their notification of a trade or concession application a document corroborating that they have been granted a visa to stay longer than 90 days or have had their long-term residency permit. A foreign natural person must further provide an extract from the criminal register or equivalent document issued by the relevant court or state authority of the country of which the individual is a national; the extract must not be more than three months old.
The Trade Office is obliged to make the entry into the Trade Register within 5 business days of receiving the notification and issue the entrepreneur an extract if the notifier meets the conditions set out in the Trades Licensing Act. Where concessions are concerned, the Trade Office shall decide the matter within 30 days of receiving the application, provided that all of the relevant particulars are met. Subsequently, within 5 business days of the decision granting the concession having come into effect, an entry is made in the Trade Register and an extract is issued to the entrepreneur.
For more information, please contact:
JUDr. Mojmír Ježek, Ph.D.
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