Free, craft and regulated trades in Czechia: which licence you need

When you think about starting out as a sole trader in Czechia, the first question is usually not "how much does it cost" but "what type of trade licence do I actually need". The Trade Licensing Act (Act No. 455/1991 Coll.) does not recognise one universal trade — it divides them by how demanding and how risky the activity is. Some you simply notify and start invoicing almost immediately; for others you must prove a vocational certificate or experience; and for the most sensitive ones you need outright state approval.

The difference between the categories is not a formality. It determines which documents you prepare, how long the process takes, and whether you may carry out the activity at all. The good news is that the vast majority of ordinary activities fall into the simplest category, and most people starting out never encounter the stricter ones. If you are also weighing whether a trade licence is the right form for you at all, a comparison of a sole trade versus an s.r.o. and what suits whom will help.

Let's go through the four types of licence so that by the end you can place your own activity — and have a sense of what awaits you at notification.

Notifiable trades versus a concession

Trades split into two large groups. Notifiable trades — free, craft and regulated — come into existence simply by being notified to the trade licensing office. If you meet the conditions, you may do business from the day of notification and the office merely enters you into the trade register. A concession trade is stricter: notification is not enough, you must apply for permission (a concession) and wait for the office to decide — often only after another relevant authority has given its opinion.

One thing all types share: the so-called general conditions. For every trade you need full legal capacity and a clean criminal record. What distinguishes the individual categories is precisely what you must prove on top of these conditions — that is, professional qualification. And it is by that qualification that trades can be neatly ranked from the simplest to the strictest.

The free trade — the broadest, with no qualification

The free trade is unusual in its very design. Formally it is a single trade named "Production, trade and services not listed in Annexes 1 to 3 of the Trade Licensing Act", which encompasses around 80 fields of activity (Annex 4 of the Act). No education or experience is required — it is enough to meet the general conditions. When notifying, you simply pick the fields you want to pursue, and you can happily hold several at once with no extra fee.

Example: the free trade covers wholesale and retail, intermediation of trade and services, advisory and consulting activity, advertising, photographic or accommodation services, and most IT and online activities. That is exactly why the majority of freelancers, small traders and people just starting out belong here — and notifying such an activity is the fastest route to your own licence.

Craft and regulated trades — when you must prove qualification

Craft trades (Annex 1) are the classic crafts, where the state wants assurance that they are performed by someone trained. You most often prove professional qualification with a vocational certificate in the field, a school-leaving certificate or a diploma in a related field, or with years of experience. Example: locksmithing, joinery, plumbing, hairdressing, baking, cosmetic services, motor vehicle repairs or the hospitality (pub and restaurant) trade.

Regulated trades (Annex 2) also require qualification, but it is precisely defined by law for each field and is usually more specific. Example: bookkeeping, project activity in construction, running a driving school, optometry or massage services. The difference from craft trades lies mainly in how you prove it: for craft trades the route is more universal (a vocational certificate plus experience), while for regulated ones you must meet exactly what the law requires for that field. If you lack the necessary education, both categories can be run through a so-called responsible representative, who meets the qualification on your behalf.

The concession trade — when the state decides

The highest demands attach to the concession trade (Annex 3). These are activities with an impact on safety, public order, health or property, so the state examines in advance who wants to carry them out. Example: road motor transport including taxi services, protection of property and persons, the production and sale of spirits, trade in weapons and ammunition, or running a travel agency.

Here notification alone is not enough. You submit an application for a concession and the office assesses not only your professional qualification but often other prerequisites too; for many activities the relevant authority also gives its opinion. You may do business only once the decision granting the concession takes legal effect — so with this type expect a longer time to arrange.

How to find out which licence you need

It is best to start from the activity, not the category. Check whether your activity is listed in one of Annexes 1 to 3 of the Act — if it is, it is a craft, regulated or concession trade; if not, it automatically falls under the free trade. The fee is the same for all notifiable types and for a concession when entering business: CZK 1,000 (each further notification later CZK 500), and in a single submission you can notify several fields for one fee. We covered the notification procedure itself in detail in the article on how to get a trade licence in Czechia.

Conclusion

The type of trade licence is not an administrative label — it tells you what you must prove and how quickly you can begin. The free trade covers most ordinary activities with nothing to prove, craft and regulated trades add a qualification requirement, and a concession means approval from the state. Once you know where your activity belongs, the rest is usually routine — including a credible address for your business, such as a curated house in central Prague for just thirty companies.

Frequently asked questions

How do I find out whether my activity is a free trade?

Use the process of elimination. If your activity is not listed in Annexes 1 to 3 of the Trade Licensing Act (craft, regulated and concession trades), it automatically falls under the free trade. The free trade covers around 80 fields of activity and requires no professional qualification. Most ordinary commercial, advisory and online activities belong here.

What do I do if I have no education or experience for a craft or regulated trade?

You can appoint a so-called responsible representative — a person who meets the required professional qualification and is responsible for the proper running of the trade. This lets you carry out the activity even if you do not hold the qualification yourself. The option applies to both craft and regulated trades and is common practice, for example, in companies.

How much does notifying a trade cost and how long does it take?

The administrative fee for entering trade business is CZK 1,000, both for notifiable trades and for a concession application. In a single submission you can notify several fields for one fee. Notifiable trades (free, craft, regulated) can be run from the day of notification; for a concession trade you must wait until the decision granting the concession takes legal effect.