How to Register a Trade Licence in 2026: A Step-by-Step Guide

Decided to go into business? Congratulations on taking this step. Registering a trade licence in the Czech Republic is a fairly straightforward process that can be completed in a matter of days — and in many cases entirely online. This guide will walk you through exactly what you need to do, which documents you'll need, how much it costs, and what to watch out for. All information is based on the currently valid Trade Licensing Act (Act No. 455/1991 Coll.) and the official resources of the Trade Licensing Register.

Before You Start: Basic Requirements for Self-Employment

To operate as a self-employed person (OSVČ) in the Czech Republic, you must meet three general conditions set out in the Trade Licensing Act:

Types of Trade Licences in the Czech Republic

Choosing the right type of trade licence is the first and most important step. The Trade Licensing Act distinguishes between two main categories and four types of licences:

A) Notifiable Trades

These trades come into existence the moment you notify the trade licensing office (or on the date you specify as the start date). You don't need to wait for a decision from the office.

The free trade is the simplest option — there is only one, officially named "Manufacturing, trade and services not listed in Annexes 1 to 3 of the Trade Licensing Act." It covers 80 business activities to choose from. When you first register, you can select any number of activities at no additional charge.

B) Concession-Based Trades

For concession-based trades, you must first submit an application for a concession. The trade licensing office will decide on the application through an administrative procedure, which typically takes around 30 days (sometimes longer if input from another authority is required).

Examples of concession-based trades: manufacturing and sale of weapons, taxi services, funeral services, property and personal security.

What You'll Need: Documents and Paperwork

Before heading to the office (or sitting down at your computer), make sure you have the following ready:

Documents required for all trade types

| Document | Notes | |----------|-------| | National ID card | Or passport for foreign nationals | | Completed Unified Registration Form (JRF) | See the next section | | Proof of payment of the administrative fee | CZK 1,000 (in person) or CZK 800 (online) |

Additional documents depending on your situation

| Situation | Required document | |-----------|-------------------| | Skilled trade | Proof of professional qualification (certificate of apprenticeship, school-leaving certificate, university diploma) + confirmation of work experience | | Regulated trade | Proof of professional qualification as per Annex 2 of the Trade Licensing Act | | Concession-based trade | Documents as per Annex 3 + any required opinion from the relevant authority | | Business address at a rented property | Written consent from the property owner to use the address as a business address (with officially certified signature) | | Responsible representative | Declaration from the responsible representative + their qualification documents | | Non-EU foreign nationals | Residence permit authorising business activity |

Step by Step: How to Register Your Trade Licence

Step 1: Choose Your Trade Type and Business Activities

If you've decided on a free trade (the most common choice for new self-employed people), go through the list of 80 business activities in Annex 4 of the Trade Licensing Act and select those that match what you plan to do. We recommend also selecting activities you might need in the future — adding further activities to your free trade at the time of initial registration is free of charge.

Most commonly selected free trade activities:

• Activity No. 70: Administrative management services and organisational and economic services
• Activity No. 72: Manufacturing, trade and services not elsewhere classified (IT services, marketing, consulting)
• Activity No. 47: Trade and services brokerage
• Activity No. 48: Wholesale and retail trade (e-commerce)

Step 2: Gather Your Documents

Collect all documents listed in the previous section. If you're registering a free trade with your business address at your permanent residence, you'll essentially only need your national ID card and the completed form.

Step 3: Fill In the Unified Registration Form (JRF)

The Unified Registration Form (JRF) is the key document that serves as a single submission for multiple authorities at once. Through the JRF, you can simultaneously:

• Register your trade with the trade licensing office
• Register for income tax with the tax office
• Notify the Czech Social Security Administration (ČSSZ) of the start of your business activity
• Register for health insurance contributions with your health insurance provider

The JRF form contains the following sections:

| Section | What you fill in | |---------|-----------------| | Part A | Personal details (name, national ID number, residential address, business address) | | Part B | Trade details (business activities, start date, business premises) | | Part C | Registration for personal income tax | | Part D | Notification of start of activity for ČSSZ | | Part E | Notification to your health insurance provider |

The JRF form can be downloaded from the Ministry of Industry and Trade website or collected directly at the trade licensing office.

Step 4: Submitting Your Notification — Where and How

You have three options for submitting your notification:

Step 5: Paying the Administrative Fee

The administrative fee of CZK 1,000 (or CZK 800 for online submissions) is payable when registering your first trade. You can pay:

• In cash at the trade licensing office cashier
• With revenue stamps
• By card payment at the office, or by bank transfer when submitting online

Important:

• If you're registering a skilled or regulated trade at the same time as a free trade, you pay for each trade separately (an additional CZK 500 per trade).
• Adding further business activities to your free trade at the time of initial registration is free of charge.
• Adding business activities to your free trade at a later date costs CZK 500.

Step 6: Receiving Your Trade Register Extract

The trade licensing office will enter your details in the trade register within 5 working days of receiving your complete and valid notification. You will receive:

• A trade register extract — this replaces the former "trade licence certificate"
• A business ID number (IČO) — automatically assigned by the company registry

You can verify your trade register extract online at any time via the Trade Licensing Register.

Step 7: Registering with Other Authorities

If you used the Unified Registration Form (JRF), the trade licensing office will automatically pass your information to the tax office, ČSSZ, and your health insurance provider. It's still worth checking:

Tax Office:

• Registration for personal income tax will happen automatically via the JRF.
• If you expect your turnover to exceed CZK 2,000,000 over 12 consecutive months, you will need to register as a VAT payer. You can also opt to register voluntarily before reaching this threshold.
• The tax office will send you a registration notice with your tax payment details.

ČSSZ (www.cssz.cz):

• Registration for social insurance will happen automatically via the JRF.
• If you are self-employed as your primary activity, you must pay monthly social insurance advance payments from the first month (at least CZK 5,720/month in 2026).
• If self-employment is your secondary activity (e.g. you are also an employee), no advance payments are required in the first year — contributions are settled retrospectively after filing your annual return.

Health Insurance Provider:

• Notification to your health insurance provider will happen automatically via the JRF.
• Self-employed people with self-employment as their primary activity pay monthly advance health insurance contributions of at least CZK 3,306/month (2026).

What to Do Immediately After Registering Your Trade Licence

You now have your trade licence and business ID — what next? Here are the steps you should take as soon as possible:

1. Open a Business Bank Account

While there's no legal requirement to keep a separate account for business purposes, we strongly recommend it. Keeping your personal and business finances separate makes tracking income and expenses much easier, and helps you avoid complications in the event of an audit.

2. Choose Your Method of Tracking Income and Expenses

As a self-employed person, you have two main options:

3. Decide Whether to Use Flat-Rate Expense Deductions

If your actual business expenses are low (typical for IT, marketing, or consulting), consider flat-rate expense deductions — you deduct a fixed percentage of your income without needing to document individual expenses:

| Type of activity | Flat rate | Maximum deduction | |-----------------|-----------|-------------------| | Skilled trades, agriculture | 80% | CZK 1,600,000 | | Other trades (free trade) | 60% | CZK 1,200,000 | | Independent professions | 40% | CZK 800,000 | | Rental income | 30% | CZK 600,000 |

4. Consider the Flat-Rate Tax Regime

If you expect annual income of up to CZK 1 million and won't be a VAT payer, the flat-rate tax regime is worth considering. Under Band 1, you pay a flat CZK 9,984 per month and are exempt from filing an annual tax return or social/health insurance statements. You can enter the flat-rate regime when registering your trade or from the start of the following calendar year. More information is available on the Czech Financial Administration website.

5. Get Ready for Your Data Mailbox

Since 2023, a data mailbox is automatically set up for all self-employed individuals. After registering your trade, you'll receive your login credentials by registered post. Having a data mailbox means you're required to communicate with authorities electronically. Find out more at info.mojedatovaschranka.cz.

6. Start Recording Income and Expenses From Day One

This is absolutely critical — don't wait until the end of the year. Record every income and expense from the very first day of trading. You'll need:

• A record of all invoices issued (income)
• A record of all receipts and invoices received (expenses)
• An overview of insurance advance payments made
• A mileage log (if you use a vehicle for business purposes)

Primary vs. Secondary Activity — What's the Difference?

Whether you operate self-employment as your primary or secondary activity has a significant impact on your obligations and the level of contributions you pay:

Special Situations

Self-Employment for Foreign Nationals

Citizens of EU/EEA countries and Switzerland can operate as self-employed under the same conditions as Czech citizens. Citizens of third countries must hold a residence permit that authorises business activity (e.g. a long-term residence permit for the purpose of business). Foreign qualifications must be officially recognised (through a nostrification process).

Responsible Representative

If you don't meet the professional qualification requirements for a skilled, regulated, or concession-based trade, you can appoint a responsible representative — an individual who does meet those requirements and is responsible for the proper operation of the trade. The responsible representative must consent to their appointment and must be in an employment relationship with the trader.

Business Premises

If you will be operating from business premises (a brick-and-mortar shop, office, or workshop), you must notify the trade licensing office no later than the day you open. The premises must be clearly marked with your trading name and business ID number. The planning permission or building approval must correspond to the intended use of the premises.

Overview of Obligations After Registering Your Trade Licence

Registering your trade is just the beginning. Here's a summary of what lies ahead:

Common Mistakes When Registering a Trade Licence

1. Choosing the wrong type of trade — if you register a free trade but your activity actually requires a skilled or regulated licence, you're operating without authorisation. This can result in a fine of up to CZK 500,000.

2. Forgetting to register with ČSSZ/health insurance provider — if you don't use the JRF, you must register with ČSSZ within 8 days of starting your activity, and with your health insurance provider within 8 days as well.

3. Late payment of advance contributions — the obligation to pay insurance advance payments begins from the first month of trading. Late payment results in penalties.

4. Failing to notify the trade office of your business premises — if you operate from business premises, you must notify the trade licensing office. Failure to do so is a regulatory offence.

5. Missing property owner's consent for business address — if your business address is not at your permanent residential address, you need written consent from the property owner with a certified signature.

Registering a Trade Licence Online — Is It Possible?

Yes, you can register a trade licence entirely online. Here's how:

If you don't yet have a data mailbox or electronic signature, you can use bank identity verification — logging in via your bank's online banking. Most major Czech banks offer this option.

Frequently Asked Questions

How much does it cost to register a trade licence?

The basic fee is CZK 1,000 for registering your first trade (CZK 800 online). If you're registering a free trade with your business address at your permanent residence, no additional fees are required. For comparison, registering a limited liability company (s.r.o.) costs CZK 8,000–12,000.

How long does it take to register a trade licence?

The trade licensing office will enter your details in the register within 5 working days of receiving your notification. If your submission is complete and error-free, you can start trading from the day you submit it. In practice, the entire process — from decision to fully operational — takes around 1–2 weeks.

Can I hold multiple trade licences at the same time?

Yes, you can hold any number of trade licences. The free trade counts as one (covering multiple business activities), but you can also hold skilled, regulated, or concession-based licences alongside it.

Can I run a business while also being employed?

Yes, employment and self-employment are not mutually exclusive. You would be registered as self-employed with secondary activity status, which means lower contribution rates. However, check your employment contract — some employers require written consent before you take on secondary employment or business activities.

What if I want to stop trading?

You can suspend your trade at any time (by notifying the trade licensing office, for a minimum of 6 months) or cancel it entirely (permanent cessation). In either case, you must file your annual statements for the period you were trading and settle any outstanding contributions.

Do I need an accountant?

For a free trade with flat-rate expense deductions or the flat-rate tax regime, you usually don't need an accountant — the record-keeping is straightforward. If you're keeping full tax records with actual expenses, or if you're registered as a VAT payer, an accountant will be a real help.

DokladBot: Your Business Companion From Day One

Registering a trade licence is easy — but keeping your finances in order right from the start is what really matters. That's exactly why we created DokladBot.

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This article is based on the currently valid Trade Licensing Act (Act No. 455/1991 Coll.), information from the Trade Licensing Register, the Czech Financial Administration, ČSSZ, and VZP. All information is accurate as of the date of publication.