Four kinds of trade licence, and why the difference matters
Before you can operate as an OSVČ — a self-employed person, the Czech equivalent of a sole trader — you have to notify a živnost, a trade licence. And the very first question stops most newcomers: which one do I actually need? The unregulated one sounds simple, but is it enough for what I do? What if my work requires a qualification?
The kind of licence decides whether you can start trading straight away or have to prove something first. This article goes through all four kinds, gives examples of the fields each one covers, and explains how to file the notification and what it costs.
Two groups: notified trades and concessions
The Trade Licensing Act (Act No. 455/1991 Coll.) splits trades into two groups:
- Notified trades — they come into existence by notification. If you meet the conditions you may start trading immediately; the authorisation arises on the day you notify it. This group covers the unregulated, craft and regulated trades.
- Concession trades — these need a concession, that is, permission from the state. You may not trade until it has been granted.
So in practice there are four kinds: unregulated, craft, regulated (all three notified) and concession. What separates them is the level of qualification the state asks you for.
The unregulated trade: no qualification required
This is what most people starting out choose. The unregulated trade requires no professional qualification at all — you only have to meet the general conditions described below. Formally it is a single licence called "Production, trade and services not listed in Annexes 1 to 3 to the Trade Licensing Act", and it is divided into 82 fields of activity at present.
When you notify it you pick the fields you want to work in — and you may hold several of them at once at no extra charge. Fields popular with freelancers include:
- Software provision, IT consultancy, data processing and web portals,
- Advisory and consultancy work, preparation of expert studies and opinions,
- Advertising, marketing and media representation,
- Photographic services,
- Translation and interpreting,
- Brokerage of trade and services.
If you write code, do marketing, copywriting, graphic design or consulting, the unregulated trade will almost certainly cover you.
The craft trade: an apprenticeship certificate or experience
Craft trades (Annex 1 to the Act) do require a professional qualification in the field. You prove it with an apprenticeship certificate, a school-leaving certificate, a higher vocational or university qualification in the field, or a professional qualification certificate. Experience in the field can stand in for the qualification.
Examples of craft trades: bricklaying, joinery, hairdressing, running a pub or restaurant, baking and confectionery, butchery, road vehicle repairs, locksmithing, chimney sweeping, installation and repair of electrical equipment, painting and varnishing.
The regulated trade: the qualification is set out in the Act
For regulated trades (Annex 2) the Act states, for each trade individually, exactly what qualification you must hold. Unlike craft trades, experience alone usually cannot replace it — the way you prove it is prescribed.
Examples of regulated trades and what they ask for:
- Bookkeeping and tax records — a university degree plus 3 years of experience, or a secondary education with a school-leaving certificate plus 5 years of experience (other combinations exist too).
- Design work in construction — professional authorisation, or the corresponding education and experience.
- Massage, reconditioning and regeneration services — a professional qualification.
- Running a driving school — a professional certificate and experience.
- Dispensing optician (oční optika).
The concession trade: you need the state's permission
Concession trades (Annex 3) are the most demanding. On top of the qualification you need a concession — a permit that the relevant state authority often has to comment on before it is issued. These are fields with elevated risk or a public-interest dimension.
Examples: taxi services, running a travel agency, funeral services, road freight transport, guarding property and people, production and sale of weapons and ammunition, spirit production.
How to file the notification and what it costs
You notify a trade on the Jednotný registrační formulář (JRF), the single registration form. One submission handles not only the trade licence itself but also your registration with the tax office, ČSSZ (social security) and your health insurance company. You can file it at any trade licensing office, at a Czech POINT desk, or electronically online.
Administrative fees for 2026:
- CZK 1,000 — your first notification of a trade or first concession application (entry into business).
- CZK 500 — each further notification or concession application.
- Several trades in one submission = you pay a single fee, the highest one.
Tip: File electronically on the published form and you get a 20% discount on the fee, up to CZK 1,000. The trade licensing office normally enters you in the register within 5 working days of receiving the notification.
General conditions and the responsible representative
For all kinds of trade you must meet two general conditions:
- Full legal capacity (for minors it can be replaced by the court's consent),
- A clean record — you must not have a final conviction for an intentional criminal offence connected with business. The office obtains the criminal record extract itself.
If you do not personally meet the qualification for a craft, regulated or concession trade, you can solve it through a responsible representative — a person who does meet it and who answers for the proper operation of the trade. One person may act as responsible representative for at most four entrepreneurs. For the unregulated trade you normally do not need one.
Which one to pick
Work backwards: find out which trade your activity falls under. Most desk-based services — IT, marketing, consulting, creative work — belong to the unregulated trade, and you can start almost immediately. If you do a craft or a regulated profession, expect to document your education or experience, or to bring in a responsible representative.
Once the trade is notified and the first invoices go out, it pays to keep your records straight from day one rather than digging through a shoebox next spring. That is what Taxorio is for: invoices, income and expense records and the tax calendar in one place. Before you go, have a look at our guide on how to register as an OSVČ in 2026.
Taxorio scope: Taxorio provides invoicing and income/expense records for Czech sole traders. It is not full accounting or personalised tax advice. For an unsupported or unusual case, verify the treatment with a Czech accountant or tax adviser before filing.