Business, Trade License

Trade License Hub – Complete Guide on Czech Trade License in 2025

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Trade License (Živnostenský List) in Czechia – Your Complete Guide

 For foreigners and locals: types of trade license, how to register, how it works, what to do afterwards (invoicing, VAT, taxes, banking). Use this single hub to navigate all steps.

What is a Trade License / Živnostenský List

A trade license (Czech: živnostenský list or živnost – hence the term “zivno”) is a permit allowing a private person to conduct business under Czech law. It is not a separate legal entity. Operating under a trade license classifies you as a sole proprietor (OSVČ in Czech).

 You will receive a business ID (IČO or IČ) and be able to issue invoices, enter contracts, and operate in most commercial fields.
You must combine it with registration at the tax office, social security, and health insurance systems (where applies).

Types of a Trade License in Czechia

 Trade licenses come in four different types:

 Volná živnost (free trades/unqualified trades) – most common and easiest to get!

 There are 82 different unqualified trades that you can choose from. If you find what you want to do in this detailed list of unqualified trades, it means getting the trade license should be relatively straightforward since you do not need to prove any education, experience or qualification.

 English teachers, translators or IT professionals typically fall under the unqualified trades.

Koncesovaná živnost (concession/licensed trade)

 These trade include high regulation trades such as security, firearms or alcohol. The most common example though is couriers and taxi (and similar – Uber/Wolt/Bolt) drivers.

 Licensed trades usually require obtaining a separate license before or along with obtaining the trade license. It can be relatively simple as for example for food-delivery couriers (watch a video guide here), a bit more complicated for taxi drivers or very complicated such as for arms trade.

Řemeslná živnost (craft trades)

 Craft trades typically require education and or experience in the particular craft. Some of the most common examples would be Butchery and sausage industry, diary industry, bakery and confectionery, locksmithing, watchmaking or jewelry and goldsmithing.

Vázaná živnost (bound/related trades)

These are basically higher risk trades that are regulated by some other laws. The most typical examples would be production of hazardous chemicals, trading animals for breeding, tax advisers, physical education and sports services, driving schools, tattoo artists, or massage therapists.

IMPORTANT NOTE: If you want to go for one of the “qualified” trade license types, brace yourself for a long and sometimes almost impossible process. The thing is that even if you have the required qualification from your home country, it will most likely not be recognized in CZE directly (i.e. your US tax advisor’s license does not apply for CZE) and you might need to go through so called “Nostrification” (recognition) process which might take months with no clear outcome (the diploma or qualification might not be recognized at the end). We might write more detailed article about these topics shortly, though they are not that common in our daily practice – about 97% of our clients fall under some of the unqualified trades. 

If you need assistance with the trade license, contact us and we’ll be happy to get it for you stress-free 🙂

Who Can Get a Trade License in Czech Republic

This is the good news! Czech Trade License is generally available for all EU citizens and all non-EU citizens holding a valid long-term visa, long-term residence permit or a permanent residence permit. It does not really matter what type of visa or residence permit you have, you can always get a trade license on top of it. The only requirement is that you must still fulfill the purpose of your stay.

This means that if you for example have a student visa, you can get a trade license and start freelancing (i.e. do Wolt delivery) as long as you still manage to go to school and pass all the exams.

If you have an employee card or a blue card, you can also get a trade license on top of your employment. You must still keep your employment though, you can not simply switch to working full-time as a freelancer.

Changing the purpose of your stay from whatever you have (student, employment, family reunification) to business (meaning your residence permit is based on you having the trade license and running a business) is generally only possible after 5 years of living in the Czech Republic.

How to Get a Trade License in Czechia – Step by Step

These are the steps you should take to get the trade license up an running in the Czech Republic.

  1. Make sure you are eligible 
    • you must meet some general (such as being at least 18 years old) and some case specific conditions (i.e. must have a valid long-term visa or a residence permit in the Czech Republic)
  2. Get all the required documents together in the required form
    • passport/national ID (for EU citizens) + valid visa or residence permit (for non-EU citizens)
    • proof of business address (read more about business address here)
    • chosen trades – ideally the unqualified ones to avoid proving education, experience and or qualification
    • clean criminal record – EU citizens, Permanent Residence Permit holders and students (with code 23 in their residence permits) do not need to present this physically. If you need a physically criminal check, it must be fresh (no older than 90 days), apostilled or superlegalized and officially translated into Czech
    • 1 000 CZK admin fee (additional fees apply for concessions etc.)
  3. Submit all the documents to a Trade License Office
    • you can submit your documents to any trade license office in the Czech Republic, you can not really submit it electronically though,
  4. Wait, then go collect the trade license
    • the trade license is usually issued within couple days given all your documentation was correct, concession might take longer
    • once the trade license is ready, you have to go to the trade license office again, to collect it
  5. Get registered with the social security (everyone has to), with the tax office (everyone has to) and public health insurance company (only applies to certain nationalities and certain visa/residence permit types)
    • most of these registrations must be submitted to a specific branch responsible for either your business address or your home address (depends on the office)
    • for more instructions on paying the monthly fees se below
  6. Set up your online accounts 
    • basically all authorities (social, health and income tax offices) offer some sort of an online account where you can (more or less accurately) check your standings with them
    • we recommend setting them up right from the start
      • social security – you can login using bank identity or data box
      • OZP – you have to set up an account first
      • VZP – you have to set up an account with them (we do not really recommend VZP though)
      • tax office – so far only in Czech, takes a few days to sync and you must know what you are looking for there
  7. Get your data box set up
    • every freelancer is automatically issued a data box (electronic way of communicating with the government) some weeks after getting the trade license,
    • the log-in details are sent via registered mail either to your business address or to your home address – a lot of people actually miss the letter due to not having their mail box properly labeled or not having a mail box at all
    • once set up, the data box should be the primary way of you (as a freelancer) communicating with the government
  8. Get your TV and radio fees sorted
  9. Make sure you understand everything related to your newly established business 
    • in most cases, this mean primarily speaking with an accountant to make sure you understand your tax obligations
    • depending on your business field, you might be subject to additional fees (i.e. city tax, garbage disposal) and additional obligations
    • when you get your trade license through Move To Prague, we provide you with a leaflet with the most essential obligations when handing over your trade license and your social security, tax and health care registrations 🙂

NOTE: If you do not want or do not have the time to run to all the different offices, we will be happy to take care of everything based on a Power of Attorney. You do not have to go anywhere (potentially not even to our office), you will rest assured that everything has been done in compliance with Czech law, with no mistakes and in the shortest possible amount of time. 

Contact us for more details!

What to do After you Get your Trade License – Taxes, Monthly Payments, Invoicing, Banking

Since this topic is pretty complex, we have prepared a separate articles addressing these specific issues.

Taxes
Invoicing
Canceling Trade License
Pausing Trade License (jiný název v CGPT)

Special rules & recent changes

  • From 1 January 2025, the VAT Act was amended: new dual thresholds for mandatory VAT registration (CZK 2,000,000 and CZK 2,536,500). If your annual turnover exceeds CZK 2,000,000 in a calendar year, you become taxable as of January 1 of the next year. If you exceed 2,536,500 in the same year, registration triggers immediately. KPMG+2KPMG+2

  • For goods or services from foreign countries without establishment in Czechia, non-resident VAT registration may be necessary. Finanční správa České republiky+1

 FAQs about Trade License

  • Does my trade license expire with my visa?

  • Can I convert my trade license to an s.r.o.?

  • When do I have to register for VAT?

  • What is the threshold for VAT from 2025?

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