In this chapter you will learn about the definition of business, running a business in the CR and types of trade. We will also tell you where to go to to arrange all the necessary requirements, where to seek help with starting a business and what obligations entrepreneurs have regarding paying taxes and health and social insurance.
Would you like to do business in the Czech Republic? In that case, there is a good news for you. In the Czech Republic you can basically do business under the same conditions as Czech citizens. At a representative office in your home country you can apply for a long-term visa for the purpose of business or for a long-term residence permit for the purpose of business.
If you have already been staying in the CR and want to change the purpose of your long-term residence permit for business, you may do so only after two years spent in the CR.
What Counts as Business?
Business is defined as a continuous activity carried out by an entrepreneur independently, in their own name and of their own responsibility in order to gain profit. Business can be run both as a main as well as a secondary activity.
A person doing business is called a self-employed person (the Czech abbreviation is OSVČ).
Business in the Czech Republic can typically take the form of 1) small trade business, or 2) participation in a commercial company.
If you are a partner, a governing body or a member of a legal entity and your work is the result of business activity of a legal entity, you need a work permit.
Business without a Trade Licence
If you want to work as an independent actor or musician, you do not need a trade licence.
Rules for doing business in the area of agricultural production, forestry and water management also represent an exception – you just need to register at the municipal office.
If you want to perform a profession regulated by special regulations (usually requiring a state exam), you do not apply for a trade licence either. This concerns for example the following professions: lawyers, brokers, tax consultants, expert witnesses, court interpreters, psychotherapists and others. However, you have to meet other requirements to be able to practice these professions independently.