Anyone who wants to do business in the Czech Republic under the Trade Licensing Act must submit a trade registration. A foreign national who is not a resident in the Czech Republic may operate a trade in the Czech Republic under the same conditions and to the same extent as a Czech person. A foreign national who intends to operate a trade in the Czech Republic is obligated to have a permit to stay in the Czech Republic and must submit a document proving the granting of a visa for a stay over 90 days or a long-term residence permit.
The applicant is obligated to define the subject of business stated in the notification with sufficient certainty and clarity. When reporting a trade, they shall specify the fields of activities that they will perform in the course of the business.
The general conditions for obtaining a trade license are:
- Full legal capacity – reaching the age of 18 years old
- Clear criminal record
In the case of foreign nationals who are not citizens of the Czech Republic or another member state of the European Union, the clear criminal record is proved with an extract from the Criminal Register, unless they are permanently resident in the Czech Republic – in that case, they prove the clear criminal record as the citizens of the Czech Republic. More information regarding an extract from the Criminal Register record can be found here: https://www.mvcr.cz/mvcren/article/extract-from-the-penal-register-record.aspx
The administration fee for notifying a trade at the commencement of trading is CZK 1000.
The notification is to be submitted at any trade licensing office, through public administration contact points (so-called Czech POINT) or electronically, through the information system of the Trade Register.
If all the conditions are fulfilled, the Trade Licensing Office will make an entry in the Trade Register within 5 working days from the date of delivery of the notification and will issue a statement to the entrepreneur.
Trade registration and reporting duty
A natural or legal person who intends to operate a registered trade is obligated to notify the trade licensing office. In the notification, the foreign nationals are required to specify:
- name, surname or name of the business company
- date of birth
- birth number (if assigned)
- ID or passport
- address of residence outside the Czech Republic
- address of the place of residence in the Czech Republic (if permitted)
- visa validity and all documents regarding residency in the Czech Republic
- extract from the Penal Register record
- title or scientific degree, if they will use it in the course of business,
- the subject of business or other additional data related to the scope of the trade license
- establishment in which the trade will commence immediately after the trade license has been established, with the exception of mobile establishments and vending machines
- a document showing payment of the administrative fee
The above-mentioned documents must be submitted in the original or an officially authenticated copy. All documents attached to the application must be in the Czech language or as an official translation. All documents issued abroad and submitted for official purposes must be properly authenticated – the authenticity of the signature and the stamp on the original documents submitted abroad must be verified.
More information about the verification of foreign public documents can be found here: https://www.mvcr.cz/mvcren/article/third-country-nationals-application-requirements-verification-of-foreign-public-documents.aspx