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Small Trade Business

Trade is any activity which meets the above mentioned characteristics of business. A one-time job, work which is not done for profit or work carried out within employment therefore do not qualify as trade (c.f. the Employment chapter).

 If your employer makes you get a trade licence certificate so that formally you acted as a sole trader, while you actually perform activities typical for employment, it is illegal circumvention of law! Misclassification of employees as independent contractors is known as “švarcsystém” in Czech

 

Trade business is regulated by the Trade Act. You can find its current version on the website of the Ministry of Industry and Trade, which is in charge of the area of business.

 

Types of Trades

There are two types of trades: notifiable and permitted.

 

Notifiable Trades

If you want to perform a notifiable trade, you just need to notify the trade licencing office. There are three types of notifiable trades:

 

1)   Unqualified trade – you only need to meet general conditions for trade operation. This category covers areas such as production and repair of shoes, accommodation services or photographic services, for which no professional qualification is required. The complete list of unqualified trades can be found in Annex No. 4 of the Trade Licensing Act.

2)   Vocational trade – these are vocations for which a professional qualification is required. The complete list of vocational trades can be found in Annex No. 1 of the Trade Licensing Act. This category covers for example butchery and smokery, bakery and confectionery, locksmithery, hairdressing and others.

3)   Professional trade – these are activities such as running a driving school, business in the area of hazardous waste management, accountancy counselling and other areas for which a professional qualification is required. The complete list can be found in Annex No. 2 of the Trade Licensing Act.

Permitted Trades

These are trades which usually require the permission of an office with territorial jurisdiction. Professional qualification may also be required (or a certain length of working experience). There are also additional requirements for entrepreneurs such as a clean criminal record for all persons performing the activity. The complete list can be found in Annex No. 3 of the Trade Licensing Act. This category covers for example road freight transport, travel agencies, security of property and people and others.

Where to get a trade licence?

You can register a notifiable trade or submit an application for a permitted trade in person at any trade licensing department of municipal offices of Prague city districts. Trade licensing departments can also be found under the name Central Registration Points (CRP) because they provide a single document, which allows you to submit the notification and at the same time tax registration, a notification for the Czech Social Security Administration, labour offices and the relevant health insurance company. Everything can also be done by mail or electronically. You can register a notifiable a trade via a Czech POINT.

 

Contacts for individual trade licensing offices can be found here:

Single registration form

The easiest way to start is to fill in the single registration form, which can be used for several registrations and notifications at once. You can start your trade, make income tax registration and send a notification to your health insurance company and social security administration. You can also register for VAT, road tax or your employees’ income tax.

 

Trade licences are issued by the Trade Licensing Office. Applications for a trade licence can also be submitted at Single Points of Contact.