What is a trade licence for the self-employed (OSVČ)?

In the Czech Republic, starting a business requires completing a number of formalities and acts, and communicating with the relevant state authorities. In particular, this means obtaining a trade licence. This is then followed by registering for social security and health insurance and, of course, registering for income tax.

Setting up a trade works by notifying the authorities of your intention to start a business, providing evidence of the necessary qualifications and a place of business, and the Trade Licensing Office (živnostenský úřad) will assign you a so-called trade licence (formerly also known as a živnostenský list) and, of course, a Company ID (IČO).

You will no longer receive the licence (the certificate) in paper form. If you ever need to prove it to clients (some types of trade must meet specific conditions), you can print an extract from the Trade Licensing Register (živnostenský rejstřík) online. You can obtain a certified version at a CzechPOINT.

The general conditions for obtaining a trade licence are, in particular, (full) legal capacity, integrity (a clean criminal record) and professional competence (where required by law). In addition, no bankruptcy must have been declared against the person within a certain period and no ban on carrying out the trade must have been imposed on them.

Besides this, there are further conditions, including, for example, that the person seeking the licence has not had a licence revoked within the previous 3 years, or that during the same period no insolvency ruling has been dismissed due to insufficient assets to cover the costs of those proceedings.

To carry out a craft trade, you must prove the required professional competence, namely by an apprenticeship certificate, school-leaving certificate, university diploma or a document recognising professional qualifications. However, the law does provide a way to make up for a lack of competence.

Specifically, this is possible through a responsible representative. This is a person who meets the competence requirements for the given type of trade and is responsible for running the trade and for compliance with the regulations.

Do you want to start a business but don't know how? Leave arranging the entire trade licence to us and don't waste time with paperwork, studying the law and visiting authorities. We handle everything simply on the basis of a power of attorney, which we prepare after receiving your enquiry. And within 5 working days you can start your business!