How to get a trade licence in Czechia

For most people starting out, a trade licence is the fastest and cheapest way to begin doing business legally. The process is simple and you can handle it in one place during a single visit — as long as you know what the office needs from you.

Let's go through how to submit the notification, what types of trade exist, and what needs to be done right after setup.

How to submit the notification

You register a trade at any trade licensing office or via Czech POINT by filling in a single registration form. With that one submission you are also registered for income tax and with the health insurer and the social security administration. The fee for the notification is CZK 1,000 and you usually receive an extract from the trade register with your assigned IČO within five working days.

The form can be submitted in person or electronically, and the notification requires an identity document and proof of good standing; for selected trades also proof of professional competence. Once the fee is paid, the office verifies that the conditions are met and issues the extract with the assigned IČO — from that moment you can start doing business and issuing invoices.

Types of trade

Trades are divided into unqualified, notifiable-qualified, craft and licensed. An unqualified trade requires no professional competence and covers most common activities. Craft and notifiable-qualified trades require proof of expertise or practice, and licensed trades additionally a state permit (a concession). For the vast majority of people starting out, an unqualified trade is enough.

Being placed in the right category matters, because it determines what you must document. With an unqualified trade you choose from dozens of fields of activity under a single authorisation, so you can operate across a broad range without further conditions; for craft trades, expertise is proven with a certificate of apprenticeship or practice.

After setup: insurer, taxes, data box

You must notify the health insurer of the start of your activity within eight days. Sole traders have a data box set up automatically since 2023, so communication with the authorities is electronic. Also distinguish between main and secondary activity — with secondary activity, for example alongside employment, you do not pay minimum contributions in the first year, which makes the start cheaper.

Tax-wise a sole trader also has a choice — you can use expense allowances, actual expenses, or enter the flat-rate tax, which combines tax and contributions into one monthly payment. The choice of regime affects both the amount of contributions and the volume of administration, so it is worth considering right at the start.

Conclusion

A trade licence is the fastest route to doing business — one submission, a CZK 1,000 fee and your IČO within five working days. Whether a trade licence or an s.r.o. is more worthwhile is covered in the article sole trader or limited company.

Frequently asked questions