Czech business licences: which activities need a permit

Foreign entrepreneurs in Prague often ask which licence they need, and the honest answer is a question: what exactly will you do? Czechia regulates business by type of activity, not by size, and the type decides whether you register in an afternoon or spend months proving your qualifications. The system is old and, once you see its shape, logical.

This explainer sets out the structure. It is general information, not legal advice. Lists of trades and their conditions change, so confirm your own activity with the trade licensing office (as of 2026; check the official source).

The main law

The Trade Licensing Act (živnostenský zákon, no. 455/1991 Coll.) governs most private business. A trade (živnost) is a continuous activity carried out independently, in one's own name and on one's own responsibility, for profit. Individuals use it to work as self-employed persons, and companies such as an s.r.o. also need a trade licence if they carry on a trade. See how to become self-employed and the s.r.o. explained.

The Act sorts trades into two broad categories: notifiable and licensed.

Notifiable trades

A notifiable trade (ohlašovací živnost) starts with a notification to the trade licensing office. The right to trade arises on the day of notification if the conditions are met, and the office enters the trade in the Trade Register. There are three kinds.

Free trades (volné) carry no professional qualification requirement. They cover a wide range of activities, among them many consulting, marketing, IT and trading businesses, and the applicant need only meet the general conditions. "Free" does not mean unregulated: the content of each trade is set by a government decree listing the fields.

Craft trades (řemeslné) are listed in an annex and require professional competence, shown by a relevant qualification, practice or certificate. Bakers, hairdressers and electricians are the classic examples, though the exact scope and the evidence required are set in the Act and its annexes.

Bound trades (vázané) also need competence, with qualifications specified for each. They cover areas where safety, health or the public interest weigh more heavily.

Licensed trades

A licensed trade (koncesovaná živnost) needs a permit (koncese) granted by the competent office after it examines the conditions. The Act's examples include areas such as private security services and activities involving weapons or explosives. The process is longer than a notification and the office has more discretion. Check the Act's annex for the current list (as of 2026; check the official source).

General conditions

Some conditions apply to every applicant. In broad terms: age 18 or over, legal capacity, and no disqualifying criminal record. EU citizens are treated like Czech citizens in this respect. Nationals of other countries also need a suitable residence status, which depends on the type of permit; see the Ministry of the Interior pages in our sources and our guide to long-term residence permits.

Where a trade needs competence, the applicant or a responsible representative (odpovědný zástupce) can supply it. Foreign qualifications can be recognised under the rules for professional qualifications, a separate process.

Professions outside the Trade Licensing Act

Not every activity is a trade. The Act excludes some, which are governed by specific laws and authorities. These include regulated professions such as lawyers, notaries, doctors, pharmacists, auditors and bailiffs, and sectors such as banking and insurance, which are regulated by sectoral law and the Czech National Bank. Some other activities fall outside as well.

Work that sounds like a profession, such as translation, photography or software development, may still be a trade, and many of these activities are covered by free trades. Do not assume you need a special licence, and do not assume you do not. Ask the office.

One person, many trades

One person can hold several trades, each entered in the trade register, and an s.r.o. can likewise be registered for several. A company's articles should list its activities, and the trade licences should match the commercial register entry where required; see the commercial register explained. If your actual work drifts away from the licensed activities, you can end up operating without the right permit.

Operating without a licence

Carrying on a trade without a licence is an administrative offence and can bring a fine under the Act (check the current maximum). The tax office will in any case treat income from continuous independent activity as business income. If in doubt, notify early.

Practical steps

Describe your activity in plain words. Match it against the list of free trades and the annexes for craft, bound and licensed trades. Choose the closest fields and note whether competence is needed. File the notification at the office with identification, proof of competence if relevant and, if you give an address, proof of the right to use the premises. The office's role is described in the Trade Licensing Office explained.

Your obligations to the tax office, the social security administration and the health insurer follow registration. For tax, see the flat-rate regime and OSVČ versus s.r.o..

Before filing, write down in one sentence what you will do and take it to the office. Ask which field it falls under. The answer costs nothing and saves you from registering the wrong trade.

This is a general explainer, not legal or tax advice.